Facilitating application of the energy service concept: Development of an analytical framework

It is widely acknowledged that the servitisation of energy retail has the potential to reduce costs and environmental impact. However, there persists a limited awareness of what market activities the energy service concept can translate into, especially in Smart Local Energy Systems (SLES). In this paper an analytical framework is developed, tested, and applied to help clarify the energy service concept, assess where its application is most appropriate in such systems, and facilitate a more strategic approach to value creation at both household and systems level to support the transition to net zero. First, we develop it through a content analysis of the energy service field's most cited papers. Second, we test its boundaries at household level through a round of interviews. Third, we demonstrate its relevance at the energy systems level by applying it in two SLES contexts. Its application revealed that focusing on value creation through material-centric energy services alone is unviable while their coordinated integration into SLES involving centralised data-centric activities creates a potential business case around network reinforcement savings and flexibility provision. For the energy service concept to succeed in the residential sector, contractual service offerings require place-based energy system integration to align with network characteristics.

Automated summary

This paper develops, tests, and applies an analytical framework to clarify the energy service concept, assess its suitability in Smart Local Energy Systems (SLES), and facilitate value creation in the transition to net zero. The framework highlights the importance of integrating material-centric and data-centric activities for a successful energy service concept in the residential sector.