Abstract
High penetration of distributed energy resources will lead to further fragmentation of the power sector, both in the services offered and its value chain. Successful business models will be those that are able to create new products, establish more efficient pricing mechanisms and monetize services, which customers could no longer receive free of charge. The principles of the ‘sharing economy’ could be applied to manage the fragmentation of the industry while keeping transaction costs in check. © 2016 King Abdullah Petroleum Studies and Research Center