Characteristics of business models for innovation clusters in decarbonation projects

Abstract

Roughly 97 % of the European Union (EU)’s building stock is not considered energy efficient, and 75 to 85 % of it will still be in use in 2050. Residential buildings account for around two thirds of final energy consumption in European buildings. The rate at which new buildings either replace the old stock, or expand the total stock, is about 1 % per year. Similarly, the current renovation rate of existing buildings in the EU is about 1–2 % of the building stock renovated each year.The transformation of today’s electric power sector to a more sustainable energy production based on renewable energies will change the structure of the industry. In this transformation towards a smart energy system interaction between sectors and technologies the main stakeholders (energy service providers; utilities) will face new challenges in their traditional way of doing business. Therefore, adapting their business models to remain competitive is seen as an important step.We chose to characterize these business models by content, structure and governance of transactions for creating value by exploiting business opportunities. In the energy sector the following characteristics to the business models for energy supply have been identified.The most predominant archetypes of business models for the energy supply are presented and discussed. Further, we propose to set up (or use existing) innovation clusters, based on these promising BM to ensure that innovative business environments (innovation clusters) will grow that have the potential for upscaling and replication of District Decarbonization Solutions. There are no specific business models for energy supply applied to renovation of districts. Uncertainties in the supportive measures for the application of DER makes it difficult to develop new business models for the utilities.