Energy Sector Evolution: Perspectives on Energy Platforms and Energy Transition

Abstract

Digital platforms are becoming more important in transforming the energy industry and altering the way we produce, distribute, and use energy. This paper explores the role of energy platforms in the transition towards renewable energy. We highlight, through real-life examples, that these platforms foster a participatory approach, convert consumers into proactive participants, democratize energy production, and encourage innovation in areas such as storage, electric mobility, and renewable project investments. Through a comprehensive review of the current literature, technological advancements, and emerging business models, we identify the possible key contributions of digital platforms to the energy sector. These platforms offer personalized user experiences, mutual benefits for users and companies, adaptability to market changes, support for peer-to-peer trade, and a reduction in bureaucracy. We then present a pioneering conceptual model by Liu et al. (2022), which integrates the energy cloud, digital platform, and transaction platform and we explore the business model of energy platforms. This business model is characterized by connectivity, innovative pricing, and revenue strategies independent of physical asset ownership. Advanced technologies like artificial intelligence and blockchain facilitate peer-to-peer energy trading, dynamic pricing, and a focus on transaction and access fees over traditional cost structures. Drawing on the business model and previous analysis we update the conceptual model for energy platforms to present a practical vision through a holistic approach.