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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2016-09-29  |  Accepted: 2016-11-16  |  Published: 2017-03-31

Title

Business model strategies: Flexibility trade in emerging low voltage distribution networks


Abstract

Empowered by information and communication technologies (ICT) analytics and smart technologies, the energy model landscape is changing with flexibility at the core of a new energy market design. In particular, multi-sided platforms (MSPs) has gained prominent attention as a business model that creates value by enabling direct interactions between several distinct groups of actors who need each other in order to deliver products to their customers. However, as MSPs are less familiar within the energy market, there has been little investigation in modelling this emerging and dynamic ecosystem. Utilising the business modelling methodology of value network analysis and the key informant technique, value flows were modelled within the context of a MSP to understand the creation, delivery and capture of value in a network of interdependent relationship, its networked position and the stakeholder interactions required for delivery of local flexibility. Supported by this analysis, this paper focuses on the LV area of the smart grid, and presents the Local Flexibility Market (LFM) as a Multi-Sided Plarform. In comparison to the traditional utility model, the complexity of this recharacterization of the industry ecosystem is significant. While it presents new opportunities for incumbent energy providers to collaborate and develop new products, the proposed LFM market design will also dramatically reshape the value model of the industry.


Keywords

smart grid, Low Voltage Grid, Flexibility Management, Local Flexibility Market, Local Flexibility Aggregator, Prosumer, Local Energy Community, Multi-Sided Business Models


JEL classifications

L10 , Q10 , P41


URI

http://jssidoi.org/jesi/article/113


DOI


Pages

380-391


Funding

This research was supported by the project Mas<sub>2</sub>tering (www.mas2tering.com), which has received funding from the European Union’s FP7 research and innovation programme under the grant agreement No 619682.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Lynch, Patrick
Waterford Institute of Technology, Waterford, Ireland https://www.wit.ie
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Power, Jamie
Waterford Institute of Technology, Waterford, Ireland https://www.wit.ie
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Hickey, Richard
Waterford Institute of Technology, Waterford, Ireland https://www.wit.ie
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Messervey, Thomas
R2M Solution Srl, Pavia, Italy http://www.r2msolution.com
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Journal title

Entrepreneurship and Sustainability Issues

Volume

4


Number

3


Issue date

March 2017


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References