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Due to this recharacterization of the electricity value chain, traditional electric utility business models are challenged.
The traditional electricity value chain comprises among electric utilities several other companies and includes (1) power generation, (2) power transmission, (3) power distribution, and (4) energy services and electric devices and appliances (= retail), from energy source to (5) consumption by the end user.
The challenge of climate change drives a three-pronged strategy in the electricity sector: decarbonisation of electricity supply, energy savings along the electricity value chain, and electrification of fossil-fuelled processes.
This could be supplemented by business model innovation in every step of the electricity value chain.
Limited knowledge exists on the added value such flexibility can bring to actors in the electricity value chain.
The position of the two business models in the electricity value chain is shown in Fig. 1.
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a These electricity values did not account for electricity required for cooling and chilled water a These electricity values did not account for electricity required for cooling and chilled water The steam energy used for production of ethanol ranged from 13.55 to 19.33 MJ/L of ethanol (Table 7).
It should be noted that electricity values presented in Tables 5 and 6 did not account for electricity required for cooling and chilled water production, however the energy required was accounted in the process energy calculations.
Even traffic, which like water and electricity has value when it flows effectively, can reuse some of the same algorithms.
A Taguchi method was employed to optimize the parameter settings for the Grey based electricity demand value predictor.
Electricity cost values were estimated based on the levelized cost of electricity (LCOE) and present value cost (PVC) methods for six locations selected across all the geopolitical zones of Nigeria.
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