A business case for Smart Grid technologies: A systemic perspective

The digitalization of the electricity grid opens the way to bundle value added services to the electricity commodity, and possibly shift business value to electricity services in line with the notions of efficiency, conservation and sustainability. In this context, market forces should be mobilized within the boundaries of energy policy goals to contribute to the massive investments that are required to fulfill the Smart Grid vision. In this paper, we present a systemic perspective aimed at establishing technical and economic synergies that may improve the business cases of individual different Smart Grid technologies and contribute to reverse the consumption-driven paradigm of the electricity sector. Our analysis is supported by evidence from applications in the electric vehicle and smart meter ecosystems. Throughout the paper, an EU (European Union) perspective is primarily considered.

► We show how the analysis of systemic effects can play a fundamental role in offering a business case to Smart Grid technology and in providing some guidance to new policy interventions and initiatives.
► We base our discussion on two case studies: the set-up of business platforms for (1) Electric Vehicles and E-mobility services and (2) Smart Meters and Smart Home Services.
► We highlight how new business arrangements might leverage technological/business synergies, foster investments and shift business value to electricity services.
► We discuss possible downsides and challenges such as privacy concerns, dominant positions in new business platforms, and consumers' resistance.