The changes in the energy industry provide many opportunities for young entrepreneurs to set up their own company. Why are startups so important for the energy transition? Startups have been an increasing phenomenon, attracting a lot of attention. But what is a startup? Most people would say they are young and small high-tech companies, but not every new or small business is a startup. And they’re not always high-tech either. A common definition of a startup is a new business offering innovative products or services, with an inherent ability to grow because of its scalability.
Startups can also break into existing markets with an innovation or an innovative adaptation of existing products or services, as startup Tvilight did. Tvilight looked at existing street lighting and introduced a smart adaptation with its concept of intelligent dimmable street lighting, saving costs and energy. Apart from introducing innovative products and services, startups make a major contribution to the energy transition by challenging and encouraging the incumbents in the industry to follow their lead and innovate too.
By Arjan Schippers
First published on March 23, 2015