Research on business model and value-added services of electric power substitution

China is energy production and consumption country, in which economic development is faced with resources shortage and serious environmental pollution, and energy security is a great threat at the same time. Actively promoting the substitution of electricity for fossil fuels such as coal and petroleum will help to improve the efficiency of energy and reduce environmental pollution. At the same time, it is of great significance for easing energy security issues. Alternative energy strategy advocates “electricity instead of coal, electricity instead of oil, and electricity consumption from far away”, which is conducive to promote energy-saving emission reduction, promote the development of new energy, reduce the energy consumption of economic development, and promote economic and environmental quality. In accordance with “national power enterprises further promote the implementation of views of electric power substitution (EPS)”, and “national power enterprises further promote the implementation of EPS notice”, the paper deeply studies business model of EPS, from the external market environment, strategic positioning, business system, key resource capacity, profit model and cash flow. First of all, the paper analyzes current status of EPS, and researches on business model and implementation steps. Then the paper analyzes contract energy management (CEM) business model, and deeply researches on participation, benefit distribution and scope of energy-saving benefit sharing, energy-saving effect guarantee, energy expenses entrusting. Finally, the paper discusses value-added services (VAS) provided by the power enterprises, including three aspects, which are energy efficiency improvement service, electricity diagnosis service and energy saving transformation service.