Potential Business Markets for the Digital Circuit Breaker : an investigation of the Swedish electricity market

Abstract: The following master thesis is conducted on behalf of The Royal Institute of Technology and Manetos AB with the purpose of investigating potential business markets for the new innovation, the Digital Circuit Breaker (DCB). The DCB is a mean for digitalising the distribution board, which is the middleman between households’ electrical appliances and the electrical grid. Through this digitalisation, a two-way communication between households and the grid can emerge, creating possibilities for demand side flexibility and energy management. The technology also provides more transparency for homeowners and real estate owners into households’ and buildings’ energy consumption, through monitoring and disaggregation. The study found that the energy landscape is facing significant challenges for the future. The integration of more intermittent energy, unpredictable energy consumption, new power consuming technologies and an aging grid were examples of challenges which potentially could jeopardize the security of electric supply. Many of these challenges however were also found to be issues which the DCB could potentially solve. It was also found that power-based tariffs spoke in favour of the DCB. Based on the overall empirical results, the study found that there is a need amongst utilities for demand side flexibility solutions and that there is a need amongst homeowners for electricity transparency and monitoring tools. This gives rise to a situation where the possibility to commercialize the DCB exists. By making the DCB a demand flexibility solution for utilities and a transparency and monitoring tool for homeowners, the needs for both utilities and homeowners can be fulfilled. The recommendations towards Manetos were to focus on the business markets electric utilities, more specifically municipally owned grid companies, and homeowners. It was found that the municipally owned grid companies focused more on socioeconomics than profit based grid companies. Furthermore, the municipally owned grid companies that had powerbased tariffs in place today showed great interest in the DCB as a tool for better managing electrical load and avoiding power peaks. For homeowners it was found that the people who owned electric vehicles or had direct electric heating showed great interest in an electricity management tool such as the DCB. The study also found real estate companies to be a business market of interest, however, not enough interviews were conducted in order to draw conclusions for the markets viability. Therefore, further investigation of the real estate company market is recommended.