This book examines business model transformation through the study of an industry at the center of today's efforts to combat climate change: electrical utilities. When change comes to the business model of a mature industry, the pattern is often recognizable. When radical change occurs in one element of an industry's business model, it often forces a period of disruption, characterized by innovation of the business model by new competitors. The utility sector, after decades of relative stability, appears to be in the midst of such a shift today.
After providing a historical summary of the dominant business models of the utility sector, Transformation of the Electric Utility Business Model looks at the factors currently impacting the industry. Utilities and policy makers today are facing two long-term issues that will dominate their agendas in the coming decades: rebuilding utility infrastructure to enable the decarbonization of the economy, while managing the risk of catastrophic events. Many investments made to support decarbonization will also support risk management, and vice versa. However, these investments are often not compatible with current utility business models and will require creativity and new regulatory frameworks to successfully implement. This book considers the impact of these factors, and then discusses the future.
This well-researched, extremely insightful book is essential reading for all those with an interest in business strategy, energy studies and sustainability.