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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.
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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
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 deploy ment 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). T he 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 sys tem 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 ch ains. 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 chang e 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&rsqu o;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 Octobe r 2014. The detailed information and analyses documented within may be out of date with current thinking
Associated Project(s) ETI-SS1401: Smart Systems and Heat (SSH) Programme - Value Management and Delivery
Associated Dataset(s) No associated datasets
Associated Publication(s)

List of projects for the ETI Smart Systems and Heat (SSH) Programme

SSH Stagegate 1 - Review of International Smart Systems and Heat Initiatives - Final Report

Value Management - Characterisation of the Current Energy Value Chain (WA4 D1)

Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 1a: Case studies.

Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 1b Analysis of existing policy

Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 1c: Energy efficiency and low-carbon heating in Germany

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 2a: Qualitative policy analysis

Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 2b: Cost benefit analysis of policies

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 3a: Modelling customer uptake (including attitudes to risk)

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 3b: Payback period drivers

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 3c: Factors affecting intervention take-up order

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 3d: Elements of business model offerings

Value Management - Overcoming barriers to smarter heat solutions in UK homes - Annex 3e: Assumptions on current and future levels of insulation

Value Management - Overcoming barriers to smarter heat solutions in UK homes - final report

Value Management - Request for Proposals