UKERC Energy Data Centre: ETI Publications

UKERC Home >> EDC Home >> ETI Publications >> Back to Results >> Value Management - Future Business Models: Options and Analysis

Value Management - Future Business Models: Options and Analysis


Citation Frontier Economics Value Management - Future Business Models: Options and Analysis, ETI, 2014. https://doi.org/10.5286/UKERC.EDC.000492.
Cite this using DataCite
Author(s) Frontier Economics
Project partner(s) Frontier Economics Limited
Publisher ETI
DOI https://doi.org/10.5286/UKERC.EDC.000492
Download SSH_SS1401_1.pdf document type
Associated Project(s) ETI-SS1401: Smart Systems and Heat (SSH) Programme - Value Management and Delivery
Associated Dataset(s) No associated datasets
Abstract This project studied how value can be delivered across a smart energy value chain - in the context of the UK. It built a clear understanding of how smart energy systems can deliver combined consumer value alongside commercial value for market participants - producers, suppliers, distributors. The analysis will help to make the commercial deployment of smart energy systems more likely. This £600,000 project was delivered by Frontier Economics, a leading economic consultancy

An important part of the SSH Programme is Value Management and Delivery which addresses the key issue of how value can be delivered across the entire smart systems value chain (in the context of the UK). The premise here is to understand how smart energy systems can deliver value to all market participants, with the customer at the heart, thereby making commercial deployment more likely. The report describes four initial business models (and two additional hybrids) representing a range of potential approaches to delivering value in the new low-carbon smart energy system and provides an initial, indicative evaluation of these business models.

Work Area 4 addresses how value can be delivered across the smart systems energy value chains. The outputs of this work will support and assist the ETI with the evolution and development of possible business models.Meeting carbon targets will require a radical change in heating technologies and energy supply.

We have produced four initial business models (and two additional hybrids) representing a range of potential approaches todeliveringvalue inthenew low-carbon smart energy system.

We have also developed a sophisticated business model evaluation tool (BMET) to help structure the ETI’s thinking around the assessment of these models. Our aim was to produce business models representing a broad range of possible opportunities for delivering value in a low-carbon economy.

This report describes and provides an initial,indicative evaluation of four business models and two hybrids:
  • Energy Outcomes, and a hybrid including additional storage;
  • Energy Mutual;
  • Community Energy, and a hybrid including Energy Outcomes; and
  • Power Buffer.
This report was initially produced in October 2014. The detailed information and analyses documented within may be out of date with current thinking