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An Original Microgrid Business Model Determines an Imminent New Asset Market

deSa, Michael E.
http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568628001000343

Abstract Details

2016, Doctor of Management, Case Western Reserve University, Weatherhead School of Management.
In spite of a distinct global demand for microgrid energy, companies receive limited investments. First, we examine in a qualitative study of 21 microgrid firms and 21 investors the determinants of each other’s business logic. Second, we use a sample of 118 publicly listed companies from 1991–2015 in a quantitative finance study to estimate our original microgrid business model’s systematic risk, relative time-variation and cyclicality effects from macroeconomic variables. Our original microgrid business model suggested three components in the value chain: electricity supply, last mile1 electrical business services provided to the microgrid user community, and the monetization of community user intelligent power data 2analysis through product and service providers. The findings indicate 1) that private capital investors have a limited understanding of the microgrid business logic caused by translation incoherence, different mental models, and weak social networks inherent within microgrid management; 2) that the microgrid business model retains two additional unrecognized value-chains of intelligent power data and electrical business services; 3) our microgrid business model has significantly lower systematic risk relative to renewable energy firms; 4) during the 2008–2015 economic crisis cycle, our microgrid business model’s systematic risk declined significantly while that for industrials increased significantly; and 5) industrial betas generate significant multivariate regression results against 90-day treasury bills (T-bills). This study exemplifies that our suggested microgrid business model has valuable implications for entrepreneurial management competencies, institutional investors that depend on systematic risk evidence for investment decisions and CEOs of utilities, industrials, renewable energy that are expanding into microgrids. 1 The last mile is the end link between consumers and connectivity and has proved to be disproportionately expensive to solve. 2 Power data analytics is consumer electricity usage translated into social profile preferences and monetized. --------------- ------------------------------------------------------------ --------------- ------------------------------------------------------------
Richard Boland, Ph.D. (Advisor)
Anurag Gupta, Ph.D. (Advisor)
Chris Laszlo, Ph.D. (Advisor)
Kalle Lyytinen, Ph.D. (Advisor)
Energy; Systems Design
business models; systematic risk; microgrid energy; entrepreneurial management

Recommended Citations

Citations

  • deSa, M. E. (2016). An Original Microgrid Business Model Determines an Imminent New Asset Market [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568628001000343

    APA Style (7th edition)

  • deSa, Michael. An Original Microgrid Business Model Determines an Imminent New Asset Market. 2016. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568628001000343.

    MLA Style (8th edition)

  • deSa, Michael. "An Original Microgrid Business Model Determines an Imminent New Asset Market." Doctoral dissertation, Case Western Reserve University, 2016. http://rave.ohiolink.edu/etdc/view?acc_num=casedm1568628001000343

    Chicago Manual of Style (17th edition)

casedm1568628001000343
264
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