Empowering Local Electricity Retail Markets through Business Modeling

Energy markets are expected to change. One interesting new market design is a local electricity retail market for prosumers. Such local energy markets provide interesting opportunities to accommodate major dynamics in the energy industry. However, business modeling for such local electricity retail markets is a challenge. Not only do emerging local energy markets differ from established markets, but they are also likely to differ among each other in regard to local regulations, local technical system set-ups, or local patterns of social acceptance. New business models for these markets can be developed for different owners - such as utilities, start-ups, or new entrants - or even for new forms of organizations, such as energy cooperatives. Within this case study students explore the emergence of a decentralized energy world as an opportunity for business modeling. Students learn about strategic issues in the energy business that shape current and future markets. They practice business modeling which accounts for the multi-level drivers that shape this market transition. The students in particular engage in business model composition for local electricity markets and compose new business models for empowering prosumers with smart grid power services and "energy managers from the hood".