Transformation of the Electric Utility Business Model: From Edison to Musk

The book explores how the electric utility industry is transforming its business model to address climate change and other challenges. It looks at the factors impacting the industry, such as rebuilding infrastructure and managing risk, and discusses the need for creativity and new regulatory frameworks to implement these changes successfully.

\n Format: Hardback
\n Length: 252 pages
\n Publication date: 06 December 2021
\n Publisher: De Gruyter
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This comprehensive book delves into the realm of business model transformation by examining the case of electrical utilities, a sector at the forefront of efforts to combat climate change. As change unfolds within the established framework of a mature industry, a discernible pattern emerges. The foundational elements of the industry undergo a seismic shift, creating an opening for innovative business models to emerge from new competitors. Simultaneously, established firms face the imminent threat of disruption, necessitating a proactive response to adapt and thrive in this evolving landscape.

The utility sector, after decades of relative stability, finds itself in the midst of a transformative journey. This transformation is driven by a multitude of factors, including the urgent need to rebuild utility infrastructure to facilitate the decarbonization of the economy and the imperative to manage the risk of catastrophic events that can leave large areas without power for extended periods.

Recognizing the significance of these challenges, utilities and policy makers are grappling with two long-term issues that will shape their agendas in the coming decades. The first pertains to the critical task of rebuilding utility infrastructure to enable the transition to a low-carbon economy. This involves significant investments in renewable energy sources, energy efficiency technologies, and smart grid systems. While these investments are necessary for the long-term sustainability of the industry, they often clash with the existing business models of utilities, demanding a creative and innovative approach to implementation.

The second challenge revolves around managing the risk of catastrophic events that can have far-reaching consequences for society. These events, such as natural disasters, cyberattacks, or infrastructure failures, can disrupt power supply, causing widespread economic and social disruption. To address this risk, utilities must develop robust risk management strategies, including backup power systems, disaster response plans, and cybersecurity measures. However, these strategies also require a reimagining of the utility business model, as they often involve new investments and partnerships that challenge the traditional boundaries of the industry.

Fortunately, there is a silver lining to these challenges. Many utility investments in decarbonization and risk management can also support each other, creating synergies and opportunities for innovation. By adopting a holistic approach, utilities can transition towards a more sustainable and resilient future while also ensuring the reliability and security of their power supply.

In conclusion, this book offers a profound exploration of the transformation of the electric utility business model. Through a detailed examination of the historical, current, and future factors impacting the industry, it provides valuable insights into the challenges and opportunities facing utilities and policy makers. It is an essential read for anyone with an interest in business strategy, energy studies, and sustainability, as it offers a roadmap for navigating the complex terrain of business model transformation in the utility sector.

\n Weight: 550g\n
Dimension: 175 x 243 x 21 (mm)\n
ISBN-13: 9783110713947\n \n