Viewing the smart grid with the theory of business models may open opportunities in understanding and capturing values in new markets. This study tries to discover and map the smart grid ecosystem-based business model framework with two different environments (sub-Saharan Africa and Denmark), and identifies the parameters for the smart grid solutions to the emerging markets. This study develops a triple-layer business model including the organizational (Niche), environmental (Intermediate), and global (Dominators) factors. The result uncovers an interface of market factors and stakeholders in a generic smart grid constellation. The findings contribute the transferability potential of the smart grid solutions between countries, and indicate the potential to export and import smart grid solutions based on the business modeling.

1. Triple-­‐layer
smart
grid
business
model
A
comparison
between
Sub-­‐Saharan
Africa
and
Denmark
Presenter:
Zheng
Ma
Associate
professor
zma@mmmi.sdu.dk
Authors:
Zheng
Ma,
Morten
Lundgaard,
Bo
Nørregaard
Jørgensen
SDU-­‐Center
for
Energy
Informa3cs,
University
of
Southern
Denmark

2. Agenda
• Background
• Methodology
• Findings
• Conclusions

3. Background
• An
esKmated
of
585
million
people
in
Sub-­‐Saharan
Africa
are
without
electricity
in
2009
(Brandon
et
al.,
2011)
• 46%
of
electricity
generated
in
some
naKons
in
Africa
is
lost
in
transmission
(data.worldbank.org)
• Companies
are
introduced
to
these
markets
without
understanding
the
inherent
business
ecosystem
Sub-­‐Saharan
Africa
geospaKal
grid
(energy4humandevelopment)

4. Research
Background
– The
needs
for
high-­‐end
mobile
applica8ons
and
overly
advanced
smart
metering
etc.
is
not
present
in
a
low
tech
Sub-­‐Saharan
African
market
since
focus
remains
on
the
basic
components
of
electric
power
systems:
GeneraKon,
Transmission
and
DistribuKon
(Deichmann
et
al.,
2010).
– “Energy
developments
in
Africa
is
a
great
market.
They
are
willing
to
invest,
and
the
public
has
the
required
finances”
–
GreenTech
– Companies
from
developed
countries
have
been
known
to
use
undeveloped
countries
to
introduce
new
energy
development
models
as
a
plaZorm
for
technology
ventures
(Ladislaw,
2011)

5. Research
QuesKon
• What
is
the
ecosystem
based
business
model
for
a
Smart
grid
infrastructure?
• And
is
this
transferable
across
countries?

6. Applied
Theories
Smart
Grid
Business
model
Open
innovaKon
Network
theories
Research
Boundary

7. Business
ecosystem
theory

8. Business
Ecosystem
theory
adoptaKon

9. Research
Framework

10. Methodology
• Single
case
study
design
(Remergy)
– Gain
significant
in-­‐depth
insights
in
a
parKcular
business
to
analyze
their
business
ecosystem
• Interviews
with
stakeholders
in
smart
grid
related
organizaKons
in
Denmark
and
sub-­‐Saharan
Africa
Empirical
data
Name
Role/Responsibilities
Date
collected
Mogens
Michael
Møller
Business
Manager
at
Udvikling
fyn
5th
March
2015
Karsten
Ingemann
CEO
Remergy
13th
March
2015
Bo
Nørregaard
Centre
manager
at
McKinney
Møller
InsKtute
14th
April
2015
Tommy
Lykkegaard
Business
manager
at
TreFor
21st
April
2015
Jeanece
Kristensen
Business
Development
Manager
22st
April
2015
Yusuf
Khamis
Partner
at
Greentech
ConnecKons
29th
April
2015

11. Methodology

12. Case
study:
Remergy
• Danish
situated
• Operates
in
sub-­‐Saharan
Africa
• Current
business:
– Remergy
develops
microgrids
in
rural
sub-­‐Saharan
Africa.
They
implement
low
technology
smart
grid
concepts
(i.e.
demand
management
and
peak
capacity
management)
to
ensure
a
high
effeciency
and
reliability
of
the
microgrid.
Remergy
microgrid

13. Four
Steps
of
Data
analysis

14. Step
1-­‐
OrganizaKonal
factor
DeterminaKon
Determining
organiza8onal
factors
for
focal
company

15. Step
2-­‐
Environmental
factors
of
Denmark
and
Africa
Determine
and
compare
Danish
and
African
environmental
factors
to
establish
any
potenKal
commonaliKes
and
variability

16. Step
3-­‐
Global
factors
of
Denmark
and
Africa
Determine
and
compare
Danish
and
African
global
factors
to
establish
any
potenKal
commonaliKes
and
variability

17. Step
4-­‐
Business
ecosystem
mapping
Construct
a
business
ecosystem
map
for
the
focal
company
with
the
consideraKons
derived
from
the
data
plot
in
the
triangle
model.

18. Research
Findings
Danish
PerspecKve
Sub-­‐Saharan
Africa
PerspecKve

19. Local
Business
Ecosystem
Level

20. Keystone
Business
Ecosystem
Level

21. Glocal
Buesiness
Ecosystem
Level

22. Summary
Triple-­‐layer
smart
grid
business
model:
• Integrated
business
ecosystem
approach
• Applicable
in
scenarios
of
great
market
difference
• Understand/analyze
a
specific
smart
grid
market
• EvaluaKon
of
the
business
potenKal
and
performance
in
a
selected
market
• Design
company
business
model
• explore
the
strategies
of
exporKng
smart
grid
soluKons
in
a
specific
markets

23. Future
Research
• Business
model
interacKon
• Network
theory
implementaKon
• AdoptaKon
of
model
to
other
case
scenarios
and
other
companies
• Transferability
of
knowledge

24. Thank
you
for
your
acenKon