Future value creation of German energy companies through smart home applications

Abstract

The existing value chains of the energy companies are eroding. Trends such as digitization, big data and AI have long since arrived in the energy industry. These demanding framework conditions are increasingly forcing energy companies to introduce new business models. A possible business model lies in smart home applications. This paper analyzes the added value of smart home applications for customer loyalty of energy companies and electricity customers, as well as to identify obstacles in the context of practical implementation. This paper examines smart home applications and the intelligent control and integration of photovoltaic systems. Above all, the avoiding of peak loads will play an important role in the energy grids of the future. The methodology describes the necessary framework conditions existing for the generation of digital innovations. Moreover, it examines the factors leading to increased customer loyalty through the value-added services and offers a load shifting potential to relieve the distribution networks. It is found that the value-added services can offer increased customer loyalty to the energy companies. Even though smart home-based services are highly relevant in a rapidly growing target market, there will only be a broad acceptance of them for the load control, if the user is offered an added value, for example by load-variable electricity tariffs. Energy companies wishing to position themselves as digital service providers must have smart home-based services such as intelligent load control and load-dependent tariff models, which enable users to add a financial value.

Keywords

• Digitization
• Germany
• Renewables
• Smart home
• Smartgrid

References

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