Business Models for Energy Efficiency Services: Four Archetypes Based on User-Centeredness and Dynamic Capabilities

Abstract

Energy Efficiency Services (EES) represent a promising solution to increase energy efficiency and contribute to reducing emissions. Unfortunately, they are still underdeveloped and companies delivering them are struggling to remain viable. In this chapter, we study EES through the lens of business models. We propose that business models of companies delivering EES can be analyzed along two conceptual dimensions: how user centered they are and what dynamic capabilities they require. We use this framework to analyze 46 cases in five European countries and South Korea. Four business model archetypes emerge, with varying degrees (low, medium, high) of user-centeredness and a focus on different dynamic capabilities. Based on the insights from our qualitative analysis, we discuss the opportunities and barriers for further market uptake of EES and possible policy interventions.