Smart grids: A paradigm shift on energy generation and distribution with the emergence of a new energy management business model

Jesus Alvaro Cardenas, University of Texas at El Paso


An energy and environmental crisis will emerge throughout the world if we continue with our current practices of generation and distribution of electricity. A possible solution to this problem is based on the Smart grid concept, which is heavily influenced by Information and Communication Technology (ICT). Although the electricity industry is mostly regulated, there are global models used as roadmaps for Smart Grids' implementation focusing on technologies and the basic generation-distribution-transmission model. This project aims to further enhance a business model for a future global deployment. It takes into consideration the many factors interacting in this energy provision process, based on the diffusion of technologies and literature surveys on the available documents in the Internet as well as peer-reviewed publications. Tariffs and regulations, distributed energy generation, integration of service providers, consumers becoming producers, self-healing devices, and many other elements are shifting this industry into a major change towards liberalization and deregulation of this sector, which has been heavily protected by the government due to the importance of electricity for consumers. We propose an Energy Management Business Model composed by four basic elements: Supply Chain, Information and Communication Technology (ICT), Stakeholders Response, and the resulting Green Efficient Energy (GEE). We support the developed model based on the literature survey, we support it with the diffusion analysis of these elements, and support the overall model with two surveys: one for peers and professionals, and other for experts in the field, based on the Smart Grid Carnegie Melon Maturity Model (CMU SEI SGMM). The contribution of this model is a simple path to follow for entities that want to achieve environmental friendly energy with the involvement of technology and all stakeholders.

Subject Area

Business administration|Information science|Energy

Recommended Citation

Cardenas, Jesus Alvaro, "Smart grids: A paradigm shift on energy generation and distribution with the emergence of a new energy management business model" (2014). ETD Collection for University of Texas, El Paso. AAI3623383.