Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation
This paper addresses the implications on the business model of district heating companies of the technology shift targeting lower temperatures in the distribution network. Lower temperatures are valuable, since heat supply to low-energy buildings with low grid losses is facilitated. In addition, low...
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| Format: | Article |
| Language: | English |
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MDPI AG
2019-05-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/12/9/1778 |
| _version_ | 1798005250018246656 |
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| author | Kristina Lygnerud |
| author_facet | Kristina Lygnerud |
| author_sort | Kristina Lygnerud |
| collection | DOAJ |
| description | This paper addresses the implications on the business model of district heating companies of the technology shift targeting lower temperatures in the distribution network. Lower temperatures are valuable, since heat supply to low-energy buildings with low grid losses is facilitated. In addition, low-temperature heat sources can be integrated into an efficient energy system, improving the environmental performance of the industry. This technology shift opens a window of opportunity to update the business logic in the sector, since the lower temperatures allow a diversification of the value proposed to customers and a closer, long-term customer relationship. The extent to which the business model is impacted by the shift is not known. Thus, six cases of low temperature implementation from five European countries have been identified. Interviews with the project managers of the implementations show that the six cases made limited change to the primary business model when making the technological shift. Consequently, there is an unexplored potential for updating the value proposition and the customer relationship. |
| first_indexed | 2024-04-11T12:36:11Z |
| format | Article |
| id | doaj.art-feab0dcd44884f85acdef11f28cfd1e5 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-11T12:36:11Z |
| publishDate | 2019-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-feab0dcd44884f85acdef11f28cfd1e52022-12-22T04:23:37ZengMDPI AGEnergies1996-10732019-05-01129177810.3390/en12091778en12091778Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth GenerationKristina Lygnerud0The School of Business, Engineering and Science, Halmstad University, P.O. Box 823, SE 30118 Halmstad, SwedenThis paper addresses the implications on the business model of district heating companies of the technology shift targeting lower temperatures in the distribution network. Lower temperatures are valuable, since heat supply to low-energy buildings with low grid losses is facilitated. In addition, low-temperature heat sources can be integrated into an efficient energy system, improving the environmental performance of the industry. This technology shift opens a window of opportunity to update the business logic in the sector, since the lower temperatures allow a diversification of the value proposed to customers and a closer, long-term customer relationship. The extent to which the business model is impacted by the shift is not known. Thus, six cases of low temperature implementation from five European countries have been identified. Interviews with the project managers of the implementations show that the six cases made limited change to the primary business model when making the technological shift. Consequently, there is an unexplored potential for updating the value proposition and the customer relationship.https://www.mdpi.com/1996-1073/12/9/1778district heatinglow temperaturefourth-generation technologybusiness model change |
| spellingShingle | Kristina Lygnerud Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation Energies district heating low temperature fourth-generation technology business model change |
| title | Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation |
| title_full | Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation |
| title_fullStr | Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation |
| title_full_unstemmed | Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation |
| title_short | Business Model Changes in District Heating: The Impact of the Technology Shift from the Third to the Fourth Generation |
| title_sort | business model changes in district heating the impact of the technology shift from the third to the fourth generation |
| topic | district heating low temperature fourth-generation technology business model change |
| url | https://www.mdpi.com/1996-1073/12/9/1778 |
| work_keys_str_mv | AT kristinalygnerud businessmodelchangesindistrictheatingtheimpactofthetechnologyshiftfromthethirdtothefourthgeneration |