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Virtual Organization of Energy Management: Service-Oriented Framework to Improve Results

  • General Energy Institute of the National Academy of Sciences of Ukraine


Today, the needs as well as capabilities to conduct business virtually have impacted business and government operations worldwide. This article's purpose is to present a framework (conceptual platform) for the implementation of energy management (EM) services via virtual organizations (VOs), which allows service providers to combine resources, capabilities and information to expand the scope and improve the quality of EM services. According to our results, two main tools have been developed. These are: (1) the creation of a virtual business community (coalition) of energy service companies (ESCOs) and (2) the organization of virtual interaction between ESCOs and clients. To maximize benefits, considerable attention should be paid to the creation of a "virtual center for coordination" of ESCOs activities, as well as to the procedure for solving problematic issues of financing ESCO projects, as well as, the mechanism for ESCOs to cooperate in cross-border (heterogeneous) markets.
VoluMe 2, nuMber 6 47
Virtual Organization of
Energy Management:
Service-Oriented Framework to
Improve Results
Leonora Chupryna, CEM
Oleksandr Kovalko, PhD
Oleksandr Novoseltsev, PhD, CEM
Eric Woodroof, PhD, CEM
Today, the needs as well as capabilities to conduct business virtually
have impacted business and government operations worldwide. This
article’s purpose is to present a framework (conceptual platform) for the
implementation of energy management (EM) services via virtual orga-
nizations (VOs), which allows service providers to combine resources,
ity of EM services. According to our results, two main tools have been
developed. These are: (1) the creation of a virtual business community
(coalition) of energy service companies (ESCOs) and (2) the organization
of virtualinteractionbetweenESCOsandclients.Tomaximizebenets,
considerable attention should be paid to the creation of a “virtual center
for coordination” of ESCOs activities, as well as to the procedure for
solving problematicissues of nancingESCO projects, aswell as, the
mechanism for ESCOs to cooperate in cross-border (heterogeneous)
Over the past 3 decades, the scope of business activities of VOs
has expanded signicantlyand covered almostall areasof  production
and consumption of goods and services for both industrial and public
48 InternatIonal Journal of energy ManageMent
appointments [1, 2]. VO services have become increasingly important
and widespread around the world in connection with the coronavirus
pandemic, when actually all sectors of the production and services in
most countries of the world have been forced to operate fully or partially
in a virtual environment.
In generalized form, VO services are determined by the jointly
agreed activities of legally independent organizations (members of
the virtual business community), which on the platform of computer
networks (cloud information and communications technologies) pool
their own resources, capabilities and information, providing customers
(clients) with systemically agreed service packages without physical con-
tactwith them.It isclear thatthe specicsof  VO activitiesare largely
determined by the structure, composition and functional properties of
cloud technologies that allow users to access, process, store, transmit and
usesharedinfor mationtoimprovetheeciencyandqualityof manufac-
tured goods and provided services. Based mainly on the wireless conjoin
(link) of physical(power) componentsof  clients’technological equip-
ment with smart components (sensors, user interfaces, microprocessors,
data storages, software, controls, etc.), virtual organizations radically
change the structure and nature of the competitive cooperation between
members of the virtual business community in the service-oriented mar-
Herewith, the VO platform provides not only the exchange of
information between producers and users of goods and services, but
also allows some functions of these goods (services) to exist in a cloud
(computing) business environment, i.e., outside their physical content.
Moreover, to process a large amount of information without human
intervention, using algorithms to make smart decisions under conditions
of competitive cooperation of members of the virtual business commu-
nity (i.e., in the conditions of incomplete available information) [3]. As
a result, the virtual combination of goods, services and information gen-
erated on the basis of cloud technology platforms allows VOs to identify
functionality of these goods and services, forming multiplicative value
chains [4].
Under this approach, members of the virtual business community
(virtual business participants) are in fact service providers whose jointly
agreed actions are “materialized” in systemically produced goods and
VoluMe 2, nuMber 6 49
services. In this case, the primary task of managing a virtual service-ori-
ented organization is to choose the type and kind of services, while the
choice of their providers becomes secondary. The list of the latter (pro-
viders) usually includes various service-oriented organizations, primarily
ESCOs, as well as consulting and research institutes, construction and
installation organizations, industry associations, public organizations
and even individual (independent) consultants who provide specialized
legal or insurance services, conduct marketing expertise, etc. This allows
members of the virtual business community to reduce costs and risks of
doingbusiness,increasetheeciencyandexibilityof exchangeknowl-
edge and new technologies, facilitate access to new markets and improve
thenancingof jointprojects.
Among the members of the virtual business community, as a rule,
one of the VOs assumes responsibility for coordinating and balancing
the business interests of all other members. The governing structure of
such a VO generally includes an administrator, a business planer, service
coordinators and brokers (intermediaries between service providers and
Among the main tasks of such a structure are [5, 6]:
• Supportthelivelihoodsof membersof thevirtual businesscommu-
• Mutuallyag reedcoordination andbalancing of theircompetencies
and resources,
• Creatingasystemof incentives,
• Developmentof partnersearchtools andmechanismstobuildtrust
among community members,
• Harmonizationof  contracts andprinciples of cooperation and
exchange of information,
• Protectionof intellectualpropertyrightsmembersof thecommuni-
ty, etc.
EM has served as fundamental platform for the systemic improve-
ment of energy performance of organizations and companies around
the world since the 1980s [7]. Its main provisions are systematically set
out in the ISO 50001 [8] and implemented according to the Deming
50 InternatIonal Journal of energy ManageMent
closed loop model according to the scheme: planning-execution-veri-
cation-adjustment, which reects theprocess of managing continual
improvement of organizations and companies of all forms of ownership,
size and appointment.
The ISO 50001 sets out the conceptual framework for the implemen-
tation of such improvements, covering the following main tasks:
• Developmentof energyeciencypolicy,
• Denitionof goalsandobjectivesforitsimplementation,
• Systematicdatacollectionforenergyusemanagingdecisions,
• Measurement,vericationandbenchmarkingof results,
• Reviewtheeectivenessof thepolicy,
• Identicationandsolutionof problems,
• Implementationof  measures(projects) aimedat improvingenergy
eciency,energysavingandreducingthecostsof organizationsand
companies for energy resources.
Among the priorities of EM, in addition to the implementation of
environment(climatecontrolandprotection),avoidingconictsof inter-
ests,and meetingsocial requirementsfor qualityof  life.The sphereof 
inuenceof  EMalsoincludes active,organizedand systemiccoordina-
tionof processesandproceduresforprocurementof equipmentandser-
vices aimed at meeting client needs, taking into account economic, social
and environmental goals. More detailed information on standardized
al. [9], McLaughlin, et al. [10], Derashri [11], and Hooke [12].
The sequenceof  EMstages of complex implementationof  energy
eciencymeasuresattheobjectsof clients,generalizedaccordingtothe
Deming cycle, is presented in Figure 1. The keys are:
• Conducting marketingfor theselection andevaluation of clients,
legal expertise of clients (due diligence),
• Identicationof  potentialinvestors,conclusion of agreementswith
clients and investors, purchase of necessary goods and services,
• Implementation of energy eciencymeasures takinginto account
environmentalissues, measurementand verication of achieved
VoluMe 2, nuMber 6 51
• Returnoninvestmentandfulllmentof guaranteeandpost-guaran-
tee obligations, transfer of rights to clients.
It shouldbe emphasizedthat theimplementation of energye-
ciency measures within the EM systems today is usually based on cloud
technologies used by system operators to monitor, control and optimize
parameters of clients’ business activity, including those related to the
actions of personnel to manage the modes of operation of technological
Figure 1. EM Continuous Cycle for the Implementation of Energy Eciency
Amongthemainadvantagesof usingvirtualEMservices,rstof all,
highlight their opportunities for further development of services markets
1) Improvedeciencyandqualityof realtimeservices,
52 InternatIonal Journal of energy ManageMent
2) Remote control of energy supply and consumption,
3) Ecientprocedureof searchandselectionpartners,
4) Investments based on portfolio deliveries.
A separate, not yet fully resolved issue of realization of these advan-
tagesof virtual servicesistheorganizationof mutuallybenecialcoop-
eration between providers and users of core-energy and energy-related
services, among which the priority is energy suppliers and consumers.
Among the latter, it is important to note the importance of ensuring
ipal and other sectors of the economy [13].
ESCOs areone of themostecientandwidespreadtypes of com-
panies in the world, specializing in the implementation of EM systems.
Both individuals and legal entities that provide EM services at clients’
facilities,assumingacertaindegreeof nancialrisk,canperformESCO
functions. Payment for ESCO services usually depends in whole or in
parton thelevelof energy eciencyimprovementachievedand/or on
themeetingof otheragreedeciencycriteria[14,15].
ESCOs realize their advantages through the implementation of a
turnkey energy serviceproject aimedat improving theeciency of tra-
ditional and renewable energy sources, distributed generation, etc. in
technological processes related to heating, cooling, lighting, ventilation,
construction, etc., ESCOs free clients from the initial costs for a long
timebecauseof  thirdpartynancing orenergysavingpaymentschemes.
ESCOs guarantee clients that the energy and/or money savings resulting
fromthe exploitationof  EMsystems willbe sucienttocoverthe costs.
ESCOs also make such systems more attractive to state and local govern-
ments by ensuring that the main assets and services under ESCO projects
burden on the budget, thus allowing for much more investment projects.
ESCOs operate on the basis of energy service contracts, the provi-
sionsof  whichcovertechnical,economic, nancialandlegalaspects of 
engineering and design work, installation and operation of energy saving
equipment, andmonitoring andverication of results fromimproving
VoluMe 2, nuMber 6 53
theenergyinfrastructureof clients.Amongthedierenttypesof energy
service contracts, the most common are energy performance contracting
practice most implemented ESCO projects are a combination of their
ing to the type of energy service contract and the form of ownership of
the client (contractors, etc.), the essence of energy services and mecha-
of such services and mechanisms, which is presented in Eutukhova, et
al. [13], distinguishes between core-energy and energy-related services
provided within the public-private partnership, multiparty ownership
agreements, lease/hire purchase, dealer credit and cession/forfeiting.
An ESCO implements its projects in close cooperation with pro-
ducers andsuppliers of energy ecientequipmentand materials, fuel
in trading platforms (exchanges, auctions), state and local authorities,
regulatory agencies, etc. Such multipurpose cooperation, in combina-
tion with the knowledge and experience of ESCOs, their contribution
tothenancing andimplementationof services,andmeasurementand
vericationof resultsprovideawell-groundedfoundationforthe stable
development of the EM services market. Unfortunately, today ESCO
activities in this market are largely chaotic and disorganized: ESCOs act
at their own risk, look for clients themselves and practically do not inter-
actwitheachother.Thissignicantlylimitstherealizationof theexisting
potential for the development of EM services market [14, 15]. Taking
into accountthe experienceof  otherservices markets(rst,electricity
markets), it can be concluded that the coordination of ESCOs activities,
which is proposed to be carried out within virtually created business
communities, will give a new powerful impetus to the development of
EM services market.
Coordination, as it relates to business, is one of the main functions of
systems management (coordinating management), which provides unity
of action and system (group) integration of resources of system elements
54 InternatIonal Journal of energy ManageMent
(human,materialandtechnical(logistical)support,nancial, etc.)to
use themmost eectivelyin pursuanceof  acommon goal. Herewith,
the balancing of resources, tasks and activities between the constituent
elements of the system (members of the virtual business community),
whichisanintegralpartof thecoordinationmechanisms,isdenedasa
relatively independent and unstable behavior of its elements (community
The virtual business community of ESCOs is organized in the pres-
ence of the initiator (initiative group), which in case of interest of other
participants in this process creates a virtual center for coordination and
balancing (VCCB). The services of a VCCB should be aimed at ensuring
theunityof individualandgroupeortsof participants(members)of the
community, aimed at the growth of added value and income of each of
them through voluntary integration and optimal use of their resources.
In general,this requiresthe involvementof  appropriatemethods and
means of coordinating management, the establishment of stable two-way
communicationchannelsandtheimprovementof cooperationtechniques
withaneectiveformatof interactionbetweenmembers[21,22].
Members’ interestin acquisitionof VCCB servicesis largelydeter-
mined by the usefulness of virtual services, the provision of which
coincides closely with the process of their consumption in contrast to
the supply of goods that can be stored or transported for a long time.
In this sense, the organizational and functional features of an ESCO’s
virtual business community can be compared with the corresponding
management functionsin theeld of coordination andbalancing in
other areas of economic activity, such as electricity market [22, 23]. This
allows adjusting the process of providing EM services to coordinate and
balancetheorganizational,logisticalandnancialinterestsof members
of the ESCO virtual business community to ensure continuous improve-
ment in time and space of the consumer properties of ESCO services.
The functioning of such a community, which is carried out by the
jointly conformed eortsof  itsmembersunder thecoordinating man-
agement of the VCCB, requiresthe consistentimplementation of the
following tasks:
1) Policy development—setting goals and performance indicators for
the center and each of the participants
VoluMe 2, nuMber 6 55
2) Planning—identication of needs, resources,regulatory andother
3) Provision of services, implementation and operation—control and
management of resources, maintenance of internal and external
4) Monitoring of the results achieved by the participants—measure-
5) Analysisof  identieddiscrepancies, eliminationof  shortcomings,
correction and settlement of inconsistencies and imbalances.
Herewith, in accordance with the EM ideology, such activities should
be carried out in a closed cycle, continuously perfecting all the tasks con-
Thegeneralizationof theaboveallowstodenethespheresof coor-
dinationinuenceof VCCBservicesinthefollowingform(seeFigure2):
1) Core-product-related servicesaliated tothe productionof  basic
goods by ESCO clients
2) Complementary services related to the production and supply of
complementary goods and services that accompany the core product
and disposal
3) Consumer-relatedservices, aliated tothe consumptionof  goods
and services (their production by clients, etc., primarily for own con-
sumption), and
4) Coordination and balancing services related to the elimination of
inconsistencies and imbalances in the process of improving the con-
sumer properties of goods and services produced, supplied and/or
consumed by ESCO clients.
The proposed algorithm for providing services works as follows. In
Inthesecond,theVCCB adjuststheproposalsandoers participants
for discussion proposed solutions, which, taking into account the tech-
nological and regime capabilities of each member, ensures a balance
of interests of community as a whole. In the third stage, the VCCB
56 InternatIonal Journal of energy ManageMent
implements iterative procedures for reconciling (balancing) interests with
each member, using market methods of economic incentives (so-called
a carrot and stick method), distinguishing between losses and costs from
possible long- and short-term imbalances and realizing their elimination
on a compensatory basis by involving balancing opportunities of mem-
bers with their consent [24].
Figure 2. Potential Spheres of VCCB Services Implementation
Among such services of members aimed at maintaining the system
balance, VCCB distinguishes two types of services:
1) For the short term, according to the available volumes of balancing
resources of members in the mode close to real time, and
2) For the long term, on the long-term balancing ability of the mem-
bers, distinguishing:
a) Modes of coordination up (increasing the size of the members’
contribution) and down, and
b) Modes of support by members of reserve capacities depending
on function and a way of their activation.
Butinanycase,infulllingtheirobligations,themembersof thecoor-
dinationmustreceiveaprot,theamountof whichisdeterminedby:
• Eciencyandqualityof servicesprovidedbythem
• Mechanismsforallocatingcoordinationandbalancingcosts
VoluMe 2, nuMber 6 57
• Cost-benetratiothroughbalancemanagement
• Degreeof useof thecheapestbalancingresources,etc.
In the presence of a complex, extensive network of community mem-
bers, the VCCB should distinguish between zonal and nodal responsibility
forbalancing. Amongthe criteriafor evaluatingthe eectivenessof  the
VCCB,members highlight,rst of  all,transparency, completeness and
accessibility of information, non-discriminatory nature of the rules of
Fundingforenergyeciencyandenergysavingprojectsisoneof the
main problematic issues for the development of the EM services market.
This is caused by a number of reasons, among which we selected the fol-
lowing[17,24].First,thevericationof theachievedeectrequiresthe
calculationof complexindicators.Specically,thecostsof fuelandener-
gy resources for the production of goods and providing services. Second,
theprotsof economicentities(ESCOclients)fromtheimplementation
of projects increase because of the reduction of the expenditure part
of their budgets, and not the increase of the revenue part. Third, the
return on investment is determined by the amount of savings achieved
by reducing the amount and/or change the type of energy consumed.
Fourth, EM projects for separately considering entities are usually not
attractive enough in their size (scale) to attract external investment.
 Withinthe virtuallyorganizedESCOcommunity,thesediculties
are largely overcome by:
1) Systemically agreed coordination of interaction of the community’s
members on the principle of relative organizational and functional
independence of each of them
2) Systemic ranking of projects submitted by clients to identify the pos-
sibility, feasibility and priority of their funding, in full or in part at the
expense of the community
3) Integration and further system optimization of the structure and
parametersof nancial,economicandenergyresourcesof theproj-
ects submitted by clients
58 InternatIonal Journal of energy ManageMent
4) Coordinated attraction of investments in a set of community projects
and providing operational assistance to members in cases of unfore-
seen expenses.
In addition, we emphasize that integrating the resources of commu-
nity members and their clients for the further use to implement the most
productive investment projects is one of the priorities of the VCCB.
Herewith,the centermustensuretheeectiveattraction,distribution
and use of investment resources, taking into account the objective dif-
ferences of the target interests of both community members and their
mentresources,thepossibility of theirformation fromdierentsources
and the development of a model of systemically coordinated manage-
ment of projects accepted for implementation. It is fundamental that
the algorithms and procedures of such management relate exclusively to
investmentprojectsand donotaect otherspheresof economicactivi-
ties of the community’s members and their clients. This allows, without
interfering in their business, them to concentrate resources on the man-
agement of projects (see details in Kolvako, et al. [24]).
Virtually coordinated cooperation between ESCOs creates fun-
damentally new opportunities for providing EM services. It should be
notedthat theeectivenessof  ESCOscoordinated cooperationlargely
depends on their ability to take into account the absolute and com-
parativeadvantages of ESCOs cooperation from dierent economic
(cross-border, heterogeneous) areas of domestic and/or foreign markets
[25, 26]. Simply put, the ESCOs can leverage each other’s strengths to
minimize a project’s risks.
The structural-and-functional scheme of the proposed mechanism
of cooperation between the two ESCOs (ESCO(a) and ESCO(b)), repre-
sented relative to the border line, which conditionally separates the two
heterogeneous zones, is shown in Figure 3. These are: Zone(a), where
ESCO(a) and its CLIENT(a) are located and/or conduct business; and
Zone(b), where ESCO(b) and its CLIENT(b) are located and/or conduct
their business.
VoluMe 2, nuMber 6 59
Referring to Figure 3, assume that each of the clients under the
terms of an energy performance contract (EPC) with an ESCO is able to
produce two improved types of goods P(a), Q(a) and P(b), Q(b), respec-
tively. Let the CLIENT(a), under the terms of the contract EPC(a) with
ESCO(a),producesand deliverstothe CLIENT(b)thequantityP(a) of 
the goods P(a). Similarly, the CLIENT(b) under the terms of the EPC(b)
withESCO(b)producesanddeliverstothe CLIENT(a)thequantity
Q(b) of the goods Q(b). Herewith, the CLIENT(a) under the terms of
EPC(a) with ESCO(a) has the opportunity to produce and sell within the
Zone(a)thequantityQ(a)of goodsQ(a),whichisacompetingsubstitute
for goods Q(b). Similarly, the CLIENT(b), under the terms of the EPC(b)
of the product P(b), which is a competing substitute for the product P(a).
Therefore, ESCO(a) and ESCO(b) have a choice, which is determined
by the functions Choose (CH(a) and CH(b)), which goods, where and in
duce,sellorbuy.Itisclearthatthefulllmentof thespeciedconditions
of  cross-borderinteraction ESCO(a) andESCO(b) requires coordina-
tion, which is carried out in accordance with the terms of the cross-bor-
der contract EPC(a/b).
The comparativebenet of ESCO’s cross-bordercooperation is
caused by the increase in production by ESCO clients of relatively more
Figure 3. The Mechanism of Interaction between ESCOs Located in Dierent
Heterogeneous Zones
60 InternatIonal Journal of energy ManageMent
outside their own zone of other goods that are relatively more expensive
to produce yourself. Details of the functioning of the cross-border coop-
erationmechanismandtheresultsof numericalcalculationsof theprot
for each of the ESCOs can be found in Kovalko, et al. [25], and Novo-
seltsev, et al. [26]. In the framework of this article, the growing impor-
tance and economic feasibility of implementing virtual mechanisms for
cross-border cooperation ESCOs, operating on the basis of cloud infor-
mation and communication technologies should be emphasized.
Energy management, as one of the fundamental tools for systemic
improvement of energy performance of organizations and companies
(allfor msof ownership, sizeand purpose),requires continualimprove-
mentof energy eciencypolicy,goalsandtasksforitsimplementation,
identicationand eliminationof  emergingproblems. Amongthe main
goals of energy management, the priority is a careful balancing between
eorts toimproveenergy eciencyandensuring thefulllment of cli-
ent’s primary mission. This is achieved through systemic coordination
of the stages of design, purchase, installation and operation of energy
ecientequipment, monitoringandverication of theachievedresults
taking into account environmental and economic objectives.
One of the primary tasks of improving EM systems is the active
use of cloud information and communication technologies to increase
theeectiveness of EMmeasures atallstages of theirimplementation,
including those related to the actions of personnel to manage technolog-
icalmodesof equipment.Herewith,theimplementationof thesetasksin
cyberspacerequiresaradicalchangein thestructureandnature of the
interaction of EM service providers with their clients. Creating a virtual
center to coordinate the interests of all participants in the process of pro-
viding EM services, as well for balancing overall resource use, creating a
system of incentives and developing principles of information exchange,
and protection of intellectual property rights, etc., is becoming decisive.
Virtual centers for coordination and balancing are becoming a basic
platform to integrate new technologies, increase transparency and use of
competitive forces to scale development of advanced energy technolo-
VoluMe 2, nuMber 6 61
gies, improve client access to these technologies, etc. In our opinion, the
mosteectivewaytosolvethetasksof creatingsuchcentersistoinvolve
ESCOs, which will guarantee their clients that the energy savings and/
The problem is that today ESCOs practically do not interact with
each other, independently looking for clients in the market of EM services.
This situation limits the boundaries of the EM services market to the rela-
tively small sizes of the projects available to each individual ESCO, there-
bylimitingtheabilityof itsclientstoincreasetheeciencyandqualityof 
production of goods and services needed by the consumers.
It is shown that the lack of jointly-agreed interaction does not realize
thesynergeticeectsof comparativeadvantagesof ESCOs’cooperation
signicant risksof  underfundingof  projectsand limitstheir insurance
opportunities. The coordination of their activities, which is proposed to
be carried out within the virtual business community of ESCOs, gives a
new impetus to the development of the EM services market. This allows
the community members to reduce costs and risks of doing business,
increasetheeciency andexibility of knowledge exchangeand new
technologies, facilitate access to new markets and improve the conditions
In this sense, the virtually coordinated cooperation of ESCOs that
interact in cross-border (heterogeneous) markets of one or more countries
opens up new opportunities for EM services aimed at modernization
and innovative development of community members and their clients.
Itshould bebornein mindthattheeectiveness of coordinatedESCOs’
cooperation is largely determined by their ability to realize the absolute
and comparative advantages of cross-border cooperation based on virtual
platforms built on cloud information and communication technologies.
Financing of EM projects, which is one of the main issues in the
development of the services market, is proposed to be carried out within a
overcome by integrated investment in the set of community projects and
systemically coordinated interaction of their members on the principle of
relative organizational and functional independence of each of them.
Overall, this study provides a framework to improve results in strength-
ening the EM services market (based on mobile and advanced virtually
62 InternatIonal Journal of energy ManageMent
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Leonora Chupryna, Eng., CEM, is a junior researcher in smart
power electronics, has 10 years of research work at Institute of General
Energy. She has published 5 articles on voltage regulation in distributed
in Ukraine. Her email is
Oleksandr Kovalko, Ph.D.,isaCertiedManager of StateCor-
porate Rights. He has extensive experience with investment ESCO proj-
ects evaluation in oil and gas companies by working as a top manager
at the National Oil and Gas Company Naftogaz of Ukraine. He can be
reached at
Dr. Oleksandr Novoseltsev, CEM, is a leading researcher, interna-
tional expert and training instructor in energy management. Dr. Novoseltsev
has experience in ESCO projects management in Ukraine, Kazakhstan,
Azerbaijan and Kyrgyzstan. He has served as president of the international
chapter of AEE in Ukraine. His email is
Dr. Eric Woodroof, CEM, isafounder of ProtableGreenSolu-
tions, a strategic advisor, project developer, expert witness, trainer and
keynote speaker. He has served as president of the AEE. He serves now
as chairman of the Energy Management Professional Council for AEE.
Dr. Woodroof can be reached at
... It should also be noted that the implementation of energy services projects today requires the involvement of cloud (virtual) technologies for monitoring, control and optimization of parameters and modes of operation of technological equipment [50]. The use of virtual technologies for providing services allows participants of energy services projects to use hardware and software, tools and methodologies that are not available for the technical possibilities of their own technological and computing base, not to spend significant funds on licensed software and not to monitor updates. ...
... ESCOs play a leading role in organizing the interaction of participants by implementing the energy services projects (see details in [3,50] To formalize the interactions in such multipart system of the market participants, we us theory of set, which allows reflecting correctly the scale and complexity of such interactions. In such a way, the ordered sets of correspond considered markets of RES, ESCOs, subcontractors and consumers this, we calculate the areas of mathematical signs (∩). ...
... Reduce the ecological impact on the environment; 8 energy services projects (see details in [3,50]). ...
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Today, the scope of energy services markets (ESMs) has expanded worldwide and covered almost all areas of production and consumption of goods and services for both industrial and public appointments, as well as households, mainly due to energy efficiency and renewable energy sources. At the same time, the incompleteness of theoretically grounded bases significantly reduces the pace of these markets development. The purpose of this study is to present the framework for the determination of directions and construct a model of structural organization and functional interaction of the ESMs participants. Such approach allows, by combining resources, capabilities and information, to expand the scope and improve the efficiency and productivity of energy services. A new structure-function model of ESMs participants' interaction has been developed. In addition, a new organizational mechanism is proposed to support the efficient functioning of the ESMs in the form of a cycle of continuous improvement of the energy services results. The practical significance of the study is to create a conceptual framework for the organization and functioning of ESMs, which allows to systemically assess the new opportunities for such markets in both developed and developing countries.
... You need to understand that building own service-oriented business is a process of continuous improvement of business models and tools for their implementation. We suggest doing this based on a continuous quality improvement model known as Deming or PDSA cycle, which consists of a logical sequence of four stages: plan, do, check, and act [31,32]. For practical use, we have developed a detailed model shown in Fig. 1. ...
... Model of continuous quality improvement of service-oriented business As you can see, a decisive role in the development and implementation of a service-oriented business is played by the initiator (orchestrator), a potential applicant for which must meet the following basic requirements [29,32]: ...
... In other words, we must consider the ESs market as an open business ecosystem, which is in a state of constant interaction (exchange) with the environment and improves EE at all stages of energy transformation-from production (generation) to final consumption. Configuration of such a structure that integrates the markets of primary and secondary energy resources (oil, natural gas, renewables, electricity, heating and cooling) with markets of energy services, producers (suppliers) of energy efficient equipment and energy consumers of various forms of ownership (private, state, municipal, cooperative, etc.) is presented in [5,32]. ...
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The transition to low-carbon development has been recognized as one of the most important directions for the transformation of national economies in most countries. Today we can identify two of the most common service-oriented logical models of this transition. These are models of Service-Dominant Logic and Product-Service Systems that are used in this study to create a service-oriented platform for stimulating business development in the field of energy-related (ER) services. The establishment of such a platform is being considered based on the conceptual provisions of the global business ecosystem. Such a platform has been found to be a powerful tool for systemic coordinated cooperation between actors in the ER-services market and the relevant actors in the energy sector as well as in other industrial markets, unleashing the benefits of synergies, resulting from such cooperation. The logical models of attracting energy services companies to the creation of virtual communities (centers) for large-scale implementation of measures in the field of energy efficiency and renewable energy sources are presented in detail. The advantages of the practical implementation of logical models are confirmed by calculations performed on mathematical model adapted for engineering use in the field of ER-services.
... Considering the complexity and a significant number of geographically dispersed and, as a rule, legally independent participants, the organization of such energy communities in practice has become possible only on the basis of smart information platforms created in a virtual (cloud) environment and functioning in conditions of competitive interaction between participants [23,24]. ...
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Energy services markets are actively developing around the world, but their growth rates need to be accelerated in order to help the world meet energy policy goals. One barrier to energy services markets is confusion created from different terminology used in different parts of the world. In this context, various definitions of the term "energy services" have been analyzed in this paper and it has been recommended to distinguish between "energy services" and "energy-related services". The structural and functional features of the energy services market conceptual design and its implementation models, as well as the use of energy service companies (ESCOs) concept has been also investigated. We hope that this standardization will clarify business activity as well as improve the ability for investors and stakeholders to further expand the market.
In the unbundled national electricity markets in Europe, the balancing market is the institutional arrangement that deals with the balancing of electricity demand and supply. This paper presents a framework for policy makers that identifies the relevant design variables and performance criteria that play a role in the design and analysis of European balancing markets. We outline the full extent of the design challenge through a discussion of trade-offs among performance criteria, uncertain effects of design variables, and the many inter-linkages between the balancing market and the electricity market at large. Policy makers can address the balancing market design challenge by adopting a structured approach in which design variables, performance criteria, market conditions, system developments, and resultant market incentives are explicitly considered.