Future business models for Western Australian electricity utilities
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© 2016 Elsevier LtdThere is growing interest and investment in solar photovoltaic (PV) panels and battery storage systems, driven by the rapidly decreasing technology costs and the movement towards more sustainable energy solutions. The increasing adoption of solar and storage systems presents both a challenge and an opportunity for electricity utilities amidst wider technological disruption in the sector. This paper investigates how Western Australian utilities can best adapt to this disruption, and in particular, explores how existing business models will need to evolve beyond traditional energy economics. Distinctive characteristics of new business models are classified, before being qualified for appropriateness to the local Western Australian context through interviews with a variety of energy market participants. For Western Australian utilities, it is suggested that these characteristics be adopted in a modular approach, to ensure capabilities are maintained, costs minimised and customers retained. This research aims to fill this local context gap in existing literature, to inform Western Australian Government policy makers and industry participants on how to evolve their existing networks and processes to create innovative and sustainable electricity systems of the future.
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