Business Models Overview
This section outlines the state-of-the-art business models associated with SP3, incorporating various technologies and digital tools, funding mechanisms, procurement procedures, and governance models functioning in cohesion. Furthermore, it provides an overview of examples from ASCEND’s lighthouse and multiplier cities, accompanied by descriptions and analyses of their key elements.
Description
- Energy performance contracts with ESCOs to improve energy efficiency of public buildings and industrial facilities through the implementation of a variety of energy efficiency measures.
- The ESCO receives a performance-based remuneration in relation to the savings it achieves.
- Revenues are contractually defined between the parties, and the amount of the remuneration is correlated with the cost savings in energy bills.
Benefits
- Guaranteed savings, shared savings, related payments, or immediate payments based on the energy savings and performance guarantees.
- Potential for significant energy savings and cost reductions in public and industrial facilities.
Governance and Procurement
- Governed by city management (CM) or special purpose vehicles (SPV).
- Procurement procedures include Wholesale Contracts (WC) and Competitive Procurement Requests/Competitive Contracting Procedures (CCPR/CCPU).
Description
- Energy-efficiency audits are offered to assess the current energy efficiency status of buildings.
- Based on the audit results, recommendations are provided to building owners and inhabitants to support their efforts in making the buildings more energy efficient.
Benefits
- Citizens implementing the energy efficiency measures benefit from reduced energy consumption and cost savings.
- Municipalities can establish specialized departments to support energy-efficient building retrofitting.
Governance and Procurement
- Governed by city management (CM) or special purpose vehicles (SPV).
- No external buying/contracting process is applicable.
Description
- Introduction of a set of standards that require new construction or major renovations of buildings to meet certain energy-efficiency criteria.
- Training on green building standards for real estate developers and architects is also included.
Benefits
- Triggers new energy efficiency consulting and training services for professionals in the building sector.
- Citizens investing in energy efficiency measures benefit from tax rebates and savings on energy bills.
Description
- A single actor offers full-service holistic renovation packages, including consulting, independent energy audit, renovation work, follow-up, and financing.
- The supplier is remunerated according to the customized service provided by the client, supported by specific grants or subsidized financing.
Benefits
- Clients benefit from energy efficiency savings or self-consumed energy in case of the installation of a local generation unit.
- Simplifies the renovation process for clients by providing all necessary services in one package.
Governance and Procurement
- Governed by city management (CM), special purpose vehicles (SPV), or national control points (NCP).
- Procurement procedures include Wholesale Contracts (WC) and Competitive Procurement Requests/Competitive Contracting Procedures (CCPR/CCPU).
Description
- A holistic approach where one single contractor handles the entire process, including construction, operation, and renovation.
- The monetization strategy includes remuneration for the provided service and energy efficiency savings or self-consumed energy from local generation units.
Benefits
- Provides a streamlined and integrated approach to building lifecycle management.
- Ensures long-term efficiency and cost savings through a single point of responsibility.
This comprehensive overview demonstrates how various digital tools and technologies can be integrated into different business models, each offering unique benefits and monetization strategies while optimizing urban management and services in the context of energy performance and efficiency.