How is value created and captured in smart grids? A review of the literature and an analysis of pilot projects
Eva Niesten () and
Renewable and Sustainable Energy Reviews, 2016, vol. 53, issue C, 629-638
Profitable business models for value creation and value capture with smart grid services are pivotal to realize the transition to smart and sustainable electricity grids. In addition to knowledge regarding the technical characteristics of smart grids, we need to know what drives companies and consumers to sell and purchase services in a smart grid. This paper reviews 45 scientific articles on business models for smart grid services and analyses information on value in 434 European and US smart grid pilot projects. Our review observes that the articles and pilots most often discuss three types of smart grid services: vehicle-to-grid and grid-to-vehicle services, demand response services, and services to integrate renewable energy (RE). We offer a classification of business models, value creation and capture for each of these services and for the different actors in the electricity value chain. Although business models have been developed for grid-to-vehicle services and for services that connect RE, knowledge regarding demand response services is restricted to different types of value creation and capture. Our results highlight that business models can be profitable when a new actor in the electricity industry, that is, the aggregator, can collect sufficiently large amounts of load. In addition, our analysis indicates that demand response services or vehicle-to-grid and grid-to-vehicle services will be offered in conjunction with the supply of RE.
Keywords: Smart grids; Business models; Value creation; Electric vehicles; Demand response; Renewable energy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:53:y:2016:i:c:p:629-638
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 600126/bibliographic
Access Statistics for this article
Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski
More articles in Renewable and Sustainable Energy Reviews from Elsevier
Series data maintained by Dana Niculescu ().