The Decentralized Energy Revolution: Business Strategies for a New Paradigm

The Decentralized Energy Revolution: Business Strategies for a New Paradigm

Christoph Burger, Jens Weinmann

Language: English

Pages: 235

ISBN: B00BOKQUYA

Format: PDF / Kindle (mobi) / ePub


Decentralized energy supply increases independence from fossil resources, reduces the carbon footprint of a society and enhances local value creation. But many of the technologies deployed are still in their infancy and depend on subsidies.

Entrepreneurs, representatives of energy incumbents and new entrants from Germany portray how they have transformed the abstract vision of a low-carbon, decentralized energy system into commercially viable business strategies. They engage in innovation and dissemination networks with municipalities and manufacturers, create new business opportunities using the information and communication layer of the smart grid, and develop an integrated value proposition beyond the narrow maximization of energy sales. Meanwhile, community empowerment stimulates the emotionalization of energy, municipalities turn into island systems and consumers into 'prosumers.'

This book provides first-hand insights of how sustainability and economy can be reconciled – and how agents of change successfully develop the blueprint of a decentralized energy future.

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New efforts. O’Reilly III and Tushman (2004) analyzed whether incumbents can remain successful in their traditional business model while also participating in disruptive innovations. They found that organizational structure and management practices play a key role in whether those efforts are successful or not. In their research, they differentiated four organizational designs to innovate: functional designs that integrate project teams in the existing organizational and management structure;.

Electricity exchange. The deficit is balanced by an assessment of all electricity consumers. In the future, electricity will be traded and marketed on the decentralized level. On average, in a rural area like ours, the size of PV installations is around 25 kW, producing around 25,000 kilowatt hours of electricity annually. If it is a single-family house, that building actually requires only 5,000 kWh for itself. If it is supplemented by energy efficiency measures, it needs perhaps only 3,000 kWh.

Themselves, can be insular and that have a percentage of generation within the zone and will buy in energy from neighboring zones for certain times and months. Naturally, even systems with a high degree of self-sufficiency will in future still be linked to an overarching network. (Voigt, Younicos) Christian Jänig of the municipal utility Unna also predicts that a move towards a more decentralized structure will take place: Consumption and generation must be coordinated by intelligent systems like.

Privacy issues: An ideal electricity network would enable the grid operator to switch individual consumers off when necessary. This requires access to the customers’ private installations. It can be doubted whether end customers are willing Smart Management of Electricity and Information 119 to reveal how much electricity they use and at what times. That information could be used to draw conclusions about their lifestyles. The data protection angle is still not resolved. (Jerusalem, Argentus).

Counterpart will remain solvent for 10 years or more. It is extremely difficult to make a forecast for such a period of time, even in areas that are relatively stable, for example hospitals or hotels in prime locations, which are likely to continue to exist irrespective of the operator. But even there, the market of customers with good credit ratings is relatively limited. Enabling Negawatts 175 Similarly to banking, in contracting one has to ensure that there are collateral securities.

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