Business Model Innovation in Energy Businesses: Driving Factors, Trends and Implications for the Future

The existing energy system is heavily centralized, where production and distribution systems are largely controlled by big utility companies. The issue of global warming, the need to reduce emissions, sustainable use of conventional hydrocarbons, and improvements in renewable energy technologies – both in terms of cost and performance – has highlighted the need to transform the energy market. The trend is further exacerbated by the advancement in technology. The transformation is said to have implications for the stakeholders involved in the process, including customers, utility companies, and regulatory bodies. The objective of this study is to explore the effect this transformation would have on the local energy system and the changes needed to be made to ensure the transition provides desired outcomes. Based on the findings, the study proposes changes companies need to make in their business models to adapt to the changing needs of the market as well as of customers.