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With Nicaragua and Syria committed to joining the Paris Agreement to tackle climate change, USA is now the only country withholding their participation in this global effort. Earlier in the year, President Donald Trump had also signed an executive order to repeal USA’s Clean Power Plan.
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?
Power-Gen Europe, held in Cologne last week, has for decades been an annual ‘must attend’ fixture for the conventional power generation industry. Everyone in the sector has been there, and the big centralised power players competed at a monumental scale for stand size, profile and ‘wow factor’.
Policy developments are crucial for Combined Heat & Power(CHP) deployment in Europe, as spark spreads may not be attractive enough in some European countries to drive installations. There are currently two different sets of regulations that will affect CHP regulation in Europe: The Energy Efficiency Directive (EED) and new emission regulations. These developments, briefly discussed in this blog, will likely create new dynamics in the market, with certain market segments gaining advantage.
Germany’s ‘Energiewende’ (Energy Transition) is well publicised, and frequently referenced, as an example of how to (or not, depending on your point of view!) transform a country’s energy system away from low efficiency, high-carbon energy and towards an environmentally friendly, reliable energy system.
One of the fundamental pillars of the Energiewende is a support framework for renewable electricity generation. In the early 1990s, renewables accounted for less than 5% of yearly electricity generated in Germany. Today, the figure stands at around 35% - and the future direction of travel is clear.
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