Delta-ee Research Blog

Keep up to date with our latest news and research by subscribing to the Delta-ee blog - just click on the button below.

Subscribe to our blog

New, Innovative, Disruptive – business models for CHP in the 21st Century

abstract Hong Kong

New business models. Innovative business models. Disruptive business models… Today, these terms are used often by those referring to the energy industry and the fundamental changes it’s undergoing (i.e. becoming more distributed, more customer centric, more service orientated…). It sounds exciting, cutting edge, and – more importantly for some - investable. But what is the truth around the evolution of business models and their application in an increasingly dynamic and changing industry like ‘energy’?

The truth is that a “business model” – simply put – is just a company’s way of making money. Can you really have a “new” or “innovative” or “disruptive” business model when you are involved in the supply of very traditional commodities for heating and power?

This was a question we asked ourselves while completing a recent study into the role of business models and finance to further the commercial deployment of fuel cell micro-cogeneration. As an extremely efficient energy solution that could heat and power millions of Europe’s homes and Businesses, fuel cell has much potential as a key technology for a future decentralised and low-carbon energy system. 

The study for the Fuel Cellls and Hydrogen Joint Undertaking showed that, for example, a lack of standardised data for how stationary fuel cell systems operate in the field was having a really negative impact on how re-insurers viewed the technology. This then negatively impacted on the ability for financiers and customers to accept this emergent technology, and subsequently drove up prices for the end user. 

We also found considerable room for innovation in the core business models that exists for the cogeneration application of fuel cell, especially where the latest end user data and digital techniques could be deployed. This could enable significant multiplier effects helping minimise the cost of sale, increase the understanding of customers, and improve of efficiencies in the value chain.

Of course, customers aren’t interested in fancy business models but are interested in solutions that can make their lives easier, save them money by reducing their energy bills, satisfy a legal requirement, or meet their comfort needs for heating and powering their homes. Fuel cell micro-cogeneration is, of course, very capable of delivering on these fronts. 

The original version of this post can be found at http://powerofheat.eu/blog.

Caesar’s Decree – Will large utilities survive thi...
Delta-ee's Green Team aims to cut carbon emissions

Related Posts

Register now

Search Downloads

Delta-ee Bloggers

Administrator
38 post(s)
Andy Bradley
12 post(s)
Stephen Harkin
13 post(s)
Jennifer Arran
33 post(s)
Jon Slowe
11 post(s)
Michael Brown
9 post(s)
Lindsay Sugden
71 post(s)
Steven Ashurst
53 post(s)
Lukas Bergmann
32 post(s)
John Murray
24 post(s)

Carbon Offsetting

Plan Vivo - carbon offsettingDelta-ee are proud purchasers of carbon credits.

Our Details

View full screen


Registered Office:
Floor F, Argyle House, 3 Lady Lawson Street, Edinburgh, EH3 9DR

Our Memberships

adebwpcogenehpafcdichhichydrogenkratseasedccambridge cleantechenergy ukeuroheat and power

© 2017 Delta Energy & Environment Ltd. Registered in Scotland : SC259964

Subscriber Login