Business Models in the Smart Grid: Challenges, Opportunities and Proposals for Prosumer Profitability

Abstract

Considering that non-renewable energy resources are dwindling, the smart grid turns out to be one of the most promising and compelling systems for the future of energy. Not only does it combine efficient energy consumption with avant-garde technologies related to renewable energies, but it is also capable of providing several beneficial utilities, such as power monitoring and data provision. When smart grid end users turn into prosumers, they become arguably the most important value creators within the smart grid and a decisive agent of change in terms of electricity usage. There is a plethora of research and development areas related to the smart grid that can be exploited for new business opportunities, thus spawning another branch of the so-called “green economy” focused on turning smart energy usage into a profitable business. This paper deals with emerging business models for smart grid prosumers, their strengths and weaknesses and puts forward new prosumer-oriented business models, along with their value propositions