Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities

B. Thwala; T. N.D. Mathaba

doi:10.1109/IEEM58616.2023.10406850

Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities

B. Thwala
, T. N.D. Mathaba

Postgraduate School of Engineering Management

University of Johannesburg

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

The global implications of the Paris Agreement, advances in technology and local social-economic factors are rapidly driving an energy transition that threatens existing utility business models. This work presents a preliminary analysis of the business model risks posed by global mega-trends and the local pressures on the South African municipal electricity utilities based on analysis of published literature and company documents. Using the Business Model Canvas (BMC) tool, the analysis divides the current utility business models into three elements: value proposition, creation and capture, and value capture. The results identify potential risks in the business model according to elements of the BMC to address the prevailing trends such as the energy shortage crisis, increased share of the renewable energy market, and changes in energy policies and legislation/regulations legislation.

Original language	English
Title of host publication	2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023
Publisher	Institute of Electrical and Electronics Engineers Inc.
Pages	1603-1608
Number of pages	6
ISBN (Electronic)	9798350323153
DOIs	https://doi.org/10.1109/IEEM58616.2023.10406850
Publication status	Published - 2023
Event	2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023 - Singapore, Singapore Duration: 18 Dec 2023 → 21 Dec 2023

Publication series

Name	2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023

Conference

Conference	2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023
Country/Territory	Singapore
City	Singapore
Period	18/12/23 → 21/12/23

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy
SDG 13 Climate Action

Keywords

Business model
South Africa
electricity
risk

ASJC Scopus subject areas

Artificial Intelligence
Decision Sciences (miscellaneous)
Statistics, Probability and Uncertainty
Industrial and Manufacturing Engineering
Modeling and Simulation
Strategy and Management

Access to Document

10.1109/IEEM58616.2023.10406850

Cite this

Thwala, B., & Mathaba, T. N. D. (2023). Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities. In 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023 (pp. 1603-1608). (2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/IEEM58616.2023.10406850

Thwala, B. ; Mathaba, T. N.D. / Electricity Utility Business Model Risks : A Case-study of South African Municipal Utilities. 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023. Institute of Electrical and Electronics Engineers Inc., 2023. pp. 1603-1608 (2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023).

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abstract = "The global implications of the Paris Agreement, advances in technology and local social-economic factors are rapidly driving an energy transition that threatens existing utility business models. This work presents a preliminary analysis of the business model risks posed by global mega-trends and the local pressures on the South African municipal electricity utilities based on analysis of published literature and company documents. Using the Business Model Canvas (BMC) tool, the analysis divides the current utility business models into three elements: value proposition, creation and capture, and value capture. The results identify potential risks in the business model according to elements of the BMC to address the prevailing trends such as the energy shortage crisis, increased share of the renewable energy market, and changes in energy policies and legislation/regulations legislation.",

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Thwala, B & Mathaba, TND 2023, Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities. in 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023. 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023, Institute of Electrical and Electronics Engineers Inc., pp. 1603-1608, 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023, Singapore, Singapore, 18/12/23. https://doi.org/10.1109/IEEM58616.2023.10406850

Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities. / Thwala, B.; Mathaba, T. N.D.
2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023. Institute of Electrical and Electronics Engineers Inc., 2023. p. 1603-1608 (2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AB - The global implications of the Paris Agreement, advances in technology and local social-economic factors are rapidly driving an energy transition that threatens existing utility business models. This work presents a preliminary analysis of the business model risks posed by global mega-trends and the local pressures on the South African municipal electricity utilities based on analysis of published literature and company documents. Using the Business Model Canvas (BMC) tool, the analysis divides the current utility business models into three elements: value proposition, creation and capture, and value capture. The results identify potential risks in the business model according to elements of the BMC to address the prevailing trends such as the energy shortage crisis, increased share of the renewable energy market, and changes in energy policies and legislation/regulations legislation.

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KW - South Africa

KW - electricity

KW - risk

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Thwala B, Mathaba TND. Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities. In 2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023. Institute of Electrical and Electronics Engineers Inc. 2023. p. 1603-1608. (2023 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2023). doi: 10.1109/IEEM58616.2023.10406850

Electricity Utility Business Model Risks: A Case-study of South African Municipal Utilities

Abstract

Publication series

Conference

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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