Business model status of distributed power supply and its concerns in future development

The rapid development of distributed generation is an remarkable feature of smart grid. Business model can provide fair profits for participants, so it plays an important role in distributed generation development. This paper gives a brief view of the state of art of worldwide distributed generation developments, such as America, Europe Union and China. It should be noticed that China has a fast increase of installed capacity of distributed generation under the driving force of government. Nowadays, there are two main business models of distributed generation which are selling of power generation systems and accessories and power transaction service of distributed generation. For the business model of power transaction service of distributed generation, three subtypes are addressed. They are all power outputs to grid Model, and self generation for self using and residual power to grid Model. The self generation for self using and residual power to grid model is divided into rental service model, power purchase agreement model and space renting model. These three models are carefully analyzed and their advantages and suitable scenarios are suggested. With the support of technologies and the stimulation of polices in China, the novel business model of distributed generation will appear continually. With consideration of the advance of electric transform, the occurrence of technologies of Energy Internet and the current utility marketing tactics, three main concerns are given for discussion.