Abstract for: Disruptive Challenges in Renewable Electricity: threats and opportunities for utilities
The technology shift from fossil-fuelled systems to renewable energies has been promoted by governments with the purpose of decarbonising the electricity industry. Nevertheless the fast technology progress has prompted a disruptive change which is transforming market structures. Electricity utilities with traditional business model, particularly those based on fossil fuel plants, are moving from their static and reliable position to confront renewable disruptive challenges. Under these circumstances it is necessary to reinvent their business models to survive. In this new industry environment, threats and opportunities must be clearly understood. The purpose of this paper is to identify major threats and opportunities for electricity utilities with the support of system dynamic (sd) modelling. The unit of analysis are the firm and its rivals focusing on their corresponding resources and capabilities. Through simulation runs, this paper concludes that the major threat for utilities is micro generation but at the same time new opportunities emerge as these create market niches.