Disruptive innovation in the energy sector – definition & application to renewables

Disruptive innovations are supposed to destroy established business models in different markets. For the energy sector, the debate is heating up to which extend certain technologies (e.g. renewables or battery storage) & new digital applications (e.g. AI or blockchain) might disrupt the business case of energy utilities. With this post we provide a basis for this discussion. We built on the definition of disruptive innovation by Christensen and apply this theory to renewables to show that they are actually disruptive for the incumbent energy businesses. 

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