Four areas where energy storage incites new business models
In this 5-part series, InnoEnergy discusses how storage technology, especially Battery Storage, opens doors to new value creation, and what the typical business models would be. We focus on four areas, that differ fundamentally in financing needs, revenue streams, generation and distribution assets.
The premise of our series of blog posts is that many of us do not currently capture or appreciate the full value addition that storage technologies in electricity supply have to offer.
Storage has been used as small, short-term buffers to challenge technology and only used for critical services. As technologies mature and costs decrease, the range of possible services and uses multiply. Yet the majority of them remain vastly unexplored. The correct storage technology to use depends on cost, power rating, the response time, and storage and discharge duration. Sometimes, the location itself will rule out or favor certain technologies.
Grid-scale storage requires long-term planning and large capital commitments. It takes considerable time to become profitable. Main points of our discussion will be who owns the storage assets and whether the network and market values are captured.
Many different business models are viable in behind-the-meter storage applications. Our discussion will cover the ownership, the revenue stream, and the services targeted.
Off-grid storage applications are a component of stand-alone systems, which comprise both generation and distribution assets. The business models, therefore, cover the whole energy system. We shall distinguish the size of the system and the regulations in place.
Mobility storage business models are not necessarily in for (r)evolution as the numbers of EVs and FCVs on the road increase, but major changes are expected on the way refuelling is performed with the development of charging-as-a-service.
Cheaper, mature storage technology is creating the need for business model innovation at all levels of electricity supply. We distinguished four major areas for Business Model Innovation in Energy Storage, which we will explore in upcoming posts. So please check back next week.
What can you do now?
Digital transformation is radically disrupting the energy industry. Business models need to adapt to keep pace with change. But as we move from products to services, from bricks and mortar to platforms, and with decentralisation changing the playing field, how do you stay up to speed with changing regulation? How do you ensure you’re truly optimising the opportunities?
InnoEnergy is now accepting enrolments on a new and innovative workshop on the topic: Business Model Innovation and Energy (Storage) Regulation. Through workshop-based learning, you build a big-picture understanding of the latest energy technology, business model innovation in an evolving energy landscape, and the impact of new and emerging regulation on business.
This workshop is the perfect opportunity to spot opportunities in energy storage. To enhance your business model. And to re-shape the future of your business. Find out more: https://ise.innoenergy.com/course/business-model-innovation-and-energy-storage-regulation/info