Business Models and Projects Development

Energy Business Research (iStock_000017486314Large)Researchers: Dr Markus PerkmannProfessor Erkko Autio

New business models are required to delivering new zero-carbon technologies as integrated solutions for energy efficient systems and services. This branch of EBR cluster focuses on business models including project management, design and delivery. It aims to analyse an organisational aspect of a project, the capabilities, the knowledge and skills needed for its implementation.

The particular area of interest is a new type of business and delivery models which provides not only a product but also a number of services around the delivery of the project. It may include designing, operating, maintaining and financing services. A typical example of such business model is Multi Utility Service Company (MUSCo) which provides integrated solution for energy and water supply and waste utilization. In this context the energy is understood holistically not only as direct electricity supply but also as all trades off between communal services.

A recently funded EPSRC project examines new MUSCo business models for delivering integrated water, waste and energy systems and services in the UK, focusing on a case study of Ashford in Kent. In spite of existing buildings, completely new site suggests great opportunity for new infrastructure, therefore for new business models and new practices.

Communal services suppliers have to develop new business models orientated on local electricity and heat generation on the pressure of new government regulations due to Climate Change. This market transformation creates opportunities for new market players such as Hanygall or ITPerson who will suggest new business frames and supply energy, water, waste and IT services in one integrated solution.

This stream of energy research looks at the idea of the integrated solution, new business models, new dominant concept on cognitive framework and the ways how new market players gained legitimacy, particularly from finance and property development.