Report | 2013

New Business Models for the Distribution Edge

By James NewcombVirginia LacyLena Hansen
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The electricity industry is evolving from a traditional value chain to a highly participatory constellation of interconnected business models at the distribution edge, where retail customers interface with the distribution grid.


The regulated distribution utility of the future can be an important partner in helping to coordinate the deployment and integration of distributed resources. Achieving this outcome, however, may require transformative changes to existing utility business models. This paper describes: 1) how and why the forces changing the electricity system challenge existing pricing and business models, 2) principles that could guide the creation of new business models, and 3) an emerging “solution set” of new business models.