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District heating in the future - thoughts on the business model

Lygnerud, Kristina LU ; Popovic, Tobias ; Schultze, Sebastian and Støchkel, Hanne Kortegaard (2023) In Energy 278.
Abstract

In this study, we apply a combination of methods for understanding how business models need to change to meet changing business conditions in the future (time horizon 2050). The process of applying the value proposition canvas and the business model canvas for understanding the future business models to the case of district heating has been documented. The energy transition necessitates a combination of new and existing solutions. District heating is one existing and enabling technology. The sector is, however, facing several challenges that will impact the way that business must be conducted in the future. We provide new knowledge about the characteristics of the future district heating business model and illustrate that technical... (More)

In this study, we apply a combination of methods for understanding how business models need to change to meet changing business conditions in the future (time horizon 2050). The process of applying the value proposition canvas and the business model canvas for understanding the future business models to the case of district heating has been documented. The energy transition necessitates a combination of new and existing solutions. District heating is one existing and enabling technology. The sector is, however, facing several challenges that will impact the way that business must be conducted in the future. We provide new knowledge about the characteristics of the future district heating business model and illustrate that technical development must be accompanied by business development otherwise the competitiveness of new technology is reduced. Main results show that a high level of digitalisation, enabling customers to make choices that are efficient to the district heating system, is a key future feature. Additionally, co-creation with a small group of dedicated customers will drive the sector's ongoing development. The results from the study are replicable and of relevance to other sectors undergoing large change.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Boundary conditions, Business model, Business model canvas, Customer behaviour, District heating, Energy transition, Prosumer, Stakeholder integration, Value proposition canvas
in
Energy
volume
278
article number
127714
publisher
Elsevier
external identifiers
  • scopus:85159689947
ISSN
0360-5442
DOI
10.1016/j.energy.2023.127714
language
English
LU publication?
yes
id
63584e6d-7fc3-4523-a106-e1ad78162401
date added to LUP
2023-08-15 15:11:56
date last changed
2023-11-08 09:00:20
@article{63584e6d-7fc3-4523-a106-e1ad78162401,
  abstract     = {{<p>In this study, we apply a combination of methods for understanding how business models need to change to meet changing business conditions in the future (time horizon 2050). The process of applying the value proposition canvas and the business model canvas for understanding the future business models to the case of district heating has been documented. The energy transition necessitates a combination of new and existing solutions. District heating is one existing and enabling technology. The sector is, however, facing several challenges that will impact the way that business must be conducted in the future. We provide new knowledge about the characteristics of the future district heating business model and illustrate that technical development must be accompanied by business development otherwise the competitiveness of new technology is reduced. Main results show that a high level of digitalisation, enabling customers to make choices that are efficient to the district heating system, is a key future feature. Additionally, co-creation with a small group of dedicated customers will drive the sector's ongoing development. The results from the study are replicable and of relevance to other sectors undergoing large change.</p>}},
  author       = {{Lygnerud, Kristina and Popovic, Tobias and Schultze, Sebastian and Støchkel, Hanne Kortegaard}},
  issn         = {{0360-5442}},
  keywords     = {{Boundary conditions; Business model; Business model canvas; Customer behaviour; District heating; Energy transition; Prosumer; Stakeholder integration; Value proposition canvas}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Energy}},
  title        = {{District heating in the future - thoughts on the business model}},
  url          = {{http://dx.doi.org/10.1016/j.energy.2023.127714}},
  doi          = {{10.1016/j.energy.2023.127714}},
  volume       = {{278}},
  year         = {{2023}},
}