New and Innovative Business Models for Fuel Cells in Micro-CHP: the Route to the Mainstream?

Transcription

1 Delta Energy & Environment Ltd Registered in Scotland: No SC Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS, UK New and Innovative Business Models for Fuel Cells in Micro-CHP: the Route to the Mainstream? Hydrogen & Fuel Cells into the Mainstream, 14 th March 2017 Cate Lyon, Analyst +44 (0)

2 Structure Introduction to Delta-ee Fuel cell micro-chp: what is mainstream? New and Innovative Business Models: Elcore & Thermondo (DE) Other examples Conclusion 2

3 Helping clients navigate the transformation of the energy system Advisory services to succeed in the transition from old energy to new energy. Old energy Centralised Carbon intensive Commodity sales Meter points Value is upstream New energy Distributed Low carbon Service-orientated Customer centric Value is downstream 3

4 What Delta-ee offers to clients Research Services and Multi-Client Studies Alternative Business Models in the Energy Sector Business Models Research Service Energy Services Innovation Multi-Client Study Heat Research Heat Insight Service Heat Pump Research Service Pathways Model Micro-CHP Service Digital Research Connected Home Service Customer Data Analytics Service Distributed Generation & Flexibility Research Energy Storage Service Distributed Power Service Flexibility Multi-Client Study Microgrids Multi-Client Study Smart Energy Customer Panel Knowledge Based Consulting Market analysis and forecasts Strategy Propositions and customer research Technology and product Policy & regulation Demand forecasts 4

5 European fuel cell activities: Major study on commercialisation of stationary fuel cell in Europe # 2 (1H,2017) FCH JU / Delta-ee study The purpose of this project has been to explore and define the business models and financing arrangements that will unlock the market opportunity for stationary fuel cell in Europe Consortium Members: 20 Fuel Cell Industry Players 8 Energy Utilities 4 ESCOs 3 Financial organisations 3 Network Companies 3 Industry Associations 5 Public Authorities 4 Research institute Delta Energy & Environment / FCH JU (publishing 1H,2017) Report to be published 1H,2017 5

6 Structure Introduction to Delta-ee Fuel cell micro-chp: what is mainstream? New and Innovative Business Models : Elcore & Thermondo (DE) Other examples Conclusion 6

7 Fuel cells into the mainstream, for mini- and micro-chp: what is mainstream? 10% of the total heating market / 20% of the total heating market -? Wide awareness among customers -? Products available that are suitable for most/all properties -? Subsidy-free -? 7

8 Fuel cells into the mainstream, for mini- and micro-chp: what is mainstream??? 10% of the total heating market / 20% of the total heating market -? Wide awareness among customers -? Products available that are suitable for most/all properties -? Subsidy-free -? >200,000 sold since 2005 METI subsidy continuing 8

9 Fuel cells into the mainstream, for mini- and micro-chp: what is mainstream???? 10% of the total heating market / 20% of the total heating market -? Wide awareness among customers -? Products available that are suitable for most/all properties -? Subsidy-free -? 160,000 Annual FC micro-chp sales (units), Germany 140, , ,000 80,000 60,000 FC micro-chp could reach >130,000 sales/yr (2025) in Germany under high scenario 130,000 units is >15% total DE heating market Heavily reliant on TEP subsidy (KfW 433) 5kWe HIGH 40,000 20,

10 Structure Introduction to Delta-ee Fuel cell micro-chp: what is mainstream? New and Innovative Business Models: Elcore & Thermondo (DE) Other examples Conclusion 10

11 Why business models are a key to unlocking the opportunity Effective business models are a key to unlocking the market for fuel cell in Europe. Current business models have not been successful in driving market uptake to date but new and innovative business models are emerging for energy and heating industries. Examples of the innovative business models that are emerging that can help and compete against fuel cell. 11

12 Elcore & Thermondo (DE): Business model concept: Provides low-cost loan (KfW programme 152) & TEP subsidy (KfW grant 433) (Energy) Monthly leasing & service contract rates Maintenance Install Key: Interactions Financial flow 12

13 Elcore & Thermondo (DE): Business model concept: Provides low-cost loan (KfW programme 152) & TEP subsidy (KfW grant 433) (Energy) Monthly leasing & service contract rates Maintenance Install Customer proposition: 0% financing and service contract new system at no upfront cost Online specification (15 data points) & rapid quote Seamless, single point-of-contact experience Direct value chain (no wholesaler) Special purpose vehicle ( Thermondo Energy ) set up to take advantage of lowinterest loan from national bank (KfW) Also able to use TEP/KfW433 subsidy Over 150 Elcore units sold already Key: Interactions Financial flow 13

14 Other examples, new business models: Bundling These models are based on the offer of a combination of products and financial or other services, to make them available at a lower (up-front) rate than they would normally cost. Examples of this business model: Time-of-Use Optimisation These models leverage value from the time-optimisation of energy consumption, e.g. accessing cheaper wholesale prices, participating in balancing markets or through the better integration of renewables. Examples of this business model: Heat as a Service Heat as a service business models change the focus from product and commodity sales to a service-based offering. This removes hassle and risk from the customer, but also (some of) the economic value of more efficient heating. Examples of this business model: 14

15 Structure Introduction to Delta-ee Fuel cell micro-chp: what is mainstream? New and Innovative Business Models: Elcore & Thermondo (DE) Other examples Conclusion 15

16 Conclusion Fuel cells in micro-chp in Europe could become mainstream but largely dependent on early success in Germany, using TEP/KfW 433 subsidy (2025?). New business models: examples emerging possibly too early to judge success, but promising signs e.g. Elcore & Thermondo. 16

17 Conclusion Fuel cells in micro-chp in Europe could become mainstream but largely dependent on early success in Germany, using TEP/KfW 433 subsidy (2025?). New business models: examples emerging possibly too early to judge success, but promising signs e.g. Elcore & Thermondo. Key: Strong, attractive customer proposition Partnerships needed esp. financing; IT. Innovations on additional revenue & reducing cost of sale. Importance of customer data: how much is enough? 17

18 Thank you for listening! Any questions.? Please contact me to find out more about the opportunities presented by distributed energy & power generation, and how new business models can unlock these opportunities. Contact me for more information about Delta-ee s: Cate Lyon, Analyst +44 (0) Micro-CHP Research Service Business Models Research Service Flexibility multi-client study Micro-Grids multi-client study Web: Blog: Twitter: LinkedIn: SoundCloud: 18