The topic of this presentation is business models and value creation by new types of clean energy communities. We look at what business model means in general and in relation to energy communities. We define the core element of business models, which is value creation and then take a closer look at the multiple dimensions of value that can be created by new clean energy communities in Europe.
Embeded interactive presentation
Hello and welcome to the OurEnergy platform
This brief interactive presentation is part of the content of the OurEnergy platform - a digital educational, awareness-raising and networking platform, developed as part of the H2020 NEWCOMERS project that is exploring new clean energy communities.
My name is Mojca Drevenšek and I am part of the Consensus Communications team who is in charge of the dissemination activities for the NEWCOMERS project. iva tajnšek
The topic of this presentation are the business models and value creation by new types of clean energy communities.
First we explain what a business model means in general and what in relation to energy communities. We define the core element of business models, which is value creation and then we take a closer look at the multiple dimensions of value that can be created by the new clean energy communities in Europe.
This topic is connected to the economic, social and environmental aspects of the new clean energy communities /oz Iva popravi, da bo usklajeno s key content chapters/
The information in this presentation is taken from the NEWCOMERS project research activity, summarized in the deliverable titled Typology of new clean energy communities that you can find on this link: https://www.newcomersh2020.eu/upload/files/D2_2_newcomers_typology_of_new_clean_energy_communities_DEF.pdf
We developed the content of this presentation with expert support by dr. Rok Lacko and Mrs Maša Mlinarič from the company GEN-I, the business partner of the NEWCOMERS project.
The viewing and listening to this presentation takes only about 8 minutes so let's start.
In general, what is a business model?
A business model is a conceptual tool to help understand how an organisation does business.
In the NEWCOMERS project, we define a business model in its simplest form as 'sets of propositions about how actors produce and distribute value'.
How can the definition of business model be applied to the new energy communities?
New energy community business models can be defined as all emerging business models that provide a service and therefore value to:
- Energy users,
- Energy companies,
- Energy systems and or the
- Wider society.
And who is it that develops these new business models?
New business model can be developed by existing energy companies, start-ups, spin-off companies, engineers, entrepreneurs, the municipalities as well as by the communities and several other stakeholders.
We can split the energy services that these energy communities provide into three groups:
- They are either purchasing energy as a collective group,
- Managing energy demand and supply and/or
- Generating electricity.
What value can energy communities create?
The energy communities are creating value for their customers and stakeholders in different fields, the key dimensions of value being: the economic, environmental, social, technological and political value.
You can explore these five dimensions in the given order or skip some and go directly to the dimension you're especially interested in - by clicking on it. The choice is yours????
- Economic value, which represents the classical view on, e.g.
o value creation with the monetary benefits for customers and shareholders,
o optimization of processes in order to lower the production or storage cost,
o creating local jobs and contracts, community and shareholder income;
In order for an energy community to check whether and what economic value it creates, the following factors should be considered: income generation, income retention, saving money on fuel bills, tackling fuel poverty, local job creation and other ways to support local economy
- Environmental value creation that is mainly concerned with
o Lowering the carbon footprint,
o Use of green technologies and sources of energy and
o Other local environmental benefits;
In order for an energy community to check whether and what environmental value it creates, the following factors should be considered: reduction of carbon emmissions and air pollutants, local environmental improvements
- Social value that can be defined by the learning and awareness-raising as well as empowerment of participants in the energy communities, e.g. by stimulating social entrepreneurship of the member in the energy community, local ownership and decision-making;
In order for an energy community to check whether and what social value it creates, the following factors should be considered: increasing social cohesion, increasing trust, improvement of community wellbeing, health and education, social inclusion, creating volunteering opportunities, alleviation of energy poverty, enhancement of citizens' energy literacy
- Technological value represent the value created with the use of technology that helps the members to lower their carbon footprint, trade the produced electricity and empower them to be more active in their energy use and production; it also enhances the renewable energy industtry development, energy self-sufficiency, and increased energy efficiency;
- And last but not least, here is the political value creation that is concerned mainly with the new policies that arise as a response to new energy communities and their services. It is a way of political mobilisation that can positively influence the support for energy communities in the society.
In order for an energy community to check whether and what political value it creates, the following factors should be considered: greater public engagement, awareness-raising, community empowerment, influence on energy and sustainability policies, community leadership etc.
Find more information on the topic on this link, and also welcome to check related content on the OurEnergy platform.
Are you perhaps interested in the new clean energy communities' business models from the aspect of the three pillars of business model design, namely the:
- Value proposition,
- Value creation and delivery, and
- Value capture,
And how these three pillars appliy to the specifiy types of emerging business models in the European energy communities?
If YES, then check this content item: ///
Content from this interactive presentation is available in open format so you can re-use or re-mix it or adapt it for your purposes. It's licensed CC BY, which means you can freely use it as long as you attribute it to the OurEnergy platform of the NEWCOMERS project and link it to this original file where the content was taken from and where references to original works are listed: https://www.newcomersh2020.eu/upload/files/D2_2_newcomers_typology_of_new_clean_energy_communities_DEF.pdf
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The NEWCOMERS project (New clean energy communities in a changing European energy system) will deliver practical recommendations about how the European Union as well as national and local governments can support new clean energy communities to help them flourish and unfold their potential benefits for citizens and the Energy Union.
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