Transcript Business models to underpin the development of energy positive

IDEAS
Business models to underpin Energy Positive Neighbourhoods
Dr Tracey Crosbie Teesside University
INTERNATIONAL CONFERENCE SUSTAINABLE PLACES October 2014
What is it ?
IDEAS
Intelligent neighbourhooD Energy
Allocation & Supervision
EU FP7 funded R&D project
8 Partners from the EU & Israel
Just over 4 million euros
3 years
Nov 2012 – Oct 2015
1
IDEAS Partners
IDEAS
Teesside University UK Project Coordinator
Technical Research Centre of Finland
Centre Scientifique et Technique du
Bâtiment, France
IBM Israel Science & Technology Ltd Israel
Compagnie IBM France SA France
NOBATEK France
Porvoon kaupunki Finland
Porvoon Energia Oy Finland
2
Essentials
IDEAS
 IDEAS Main Objective
 Illustrate how communities, public authorities & utility companies
can be engaged in the development of energy positive
neighbourhoods [EPNs]
 At the outset of the IDEAS project there was no
accepted definition of an EPN
 In line with this there was no approach to measuring the energy
‘positiveness’ of an area
 Therefore the first stages of the research involved
 developing a definition of an EPN
 and a set of key performance indicators (KPIs) to measure the
progress of an area toward becoming energy positive
3
Essentials
IDEAS
 Energy positive neighbourhoods are those in
which the annual energy demand is lower than the
annual energy supply from local renewable energy
sources
 The concept underpinning the IDEAS definition on
an EPN is not only to encourage distributed
renewable energy generation (DREG) but also the
local consumption of the energy produced by
DREG
 The main aim of the research into business
models within the IDEAS project is to identify how
utility companies across Europe can be profitably
engaged in the development and operation of
EPNs.
4
IDEAS
Essentials
 To realise an EPN it will be necessary to
 to optimise the production, storage /retrieval & selling of
renewable energy at the neighbourhood level
 IDEAS Approach
 Balancing real time energy supply & demand within a
neighbourhood by
 employing smart DREG & storage
 encouraging the local consumption of DREG
 supporting energy efficient urban design
 IDEAS Main Outcomes
 Reduction of energy demand & CO2 at pilot sites
 validated IDEAS business models & tools which optimise


wholesale energy trading
& local energy supply & demand solutions
5
The IDEAS Key RTD
IDEAS
Demonstrate how energy positive neighbourhoods can be cost
effectively & incrementally implemented by designing & validating
 A Neighbourhood energy
management tool to optimise
energy production &
consumption
 User interfaces that engage
communities & individuals in
the operation of energy
positive neighbourhoods
 A Decision support urban
planning tool to optimise the
planning of neighbourhood
energy infrastructures
 Business models that
support the incremental
rollout of the physical,
social & regulatory
infrastructures required
Pilot sites
IDEAS
The tools, user interfaces and elements of the business models developed will be
demonstrated at two sites:
As such the IDEAS business models reflect current aspirations of key stakeholders at
each demo- sites
Part of a University campus in Bordeaux, France
which houses the University Institute of
Technology
The Omenatarha residential neighbourhood in the
Skaftkärr area in Porvoo Finland
7
Business models
IDEAS
 The development of EPNs requires a new type of
service provider offering smart tailored services to
 Optimise the balance between energy production, storage
/retrieval & import/export (buying & selling) at the neighbourhood
level;
 Engage the relevant communities in Demand Side Management
(DSM) & Supply Side Management (SSM);
 Encourage investment in renewable energy production & energy
storage & careful consideration of future design options for the
urban environment.
 We have called this new type of service provider
an Energy Positive Neighbourhood Service
Provider (EPNSP)
8
Business Models

IDEAS
The business models developed in IDEAS for EPNSPs
are integrated business models, in which firms
 bundle innovation & product together
 assume the responsibility for the entire value chain related to
supplying affordable locally produced renewable energy
 This will involve the development of partnerships between
existing companies involved in the supply generation &
distribution of both heat & electricity
 The partnerships required will depend on the current
configuration of the companies involved
Business models
IDEAS
 EPNSP business model developed in the context of the Finnish
pilot site is a District Energy Supplier that:
 Generates supplies & distributes electricity & heat from renewable
resources to residential & commercial customers
 Supplies DSM services to support a reduction in peak demand & energy
use when it is available from renewable resources
 Buys & sells electricity on the wholesale market
 Has the means to control local energy production
 Optimises the storage /retrieving & buying/selling of energy to increase
profits & reduce CO2 emissions
It involves a partnerships between:
 the incumbent district heat network operator & electricity supplier,
 the incumbent distribution network operator, which provides the network
which distributes electricity
 and the local authority to encourage the use of the district heating system and
investment in the efficient buildings and wider renewable energy
infrastructures
10
Business models
IDEAS
 EPNSP business model developed in the context of the French
pilot site is an integrated energy contractor that
 Installs & runs renewable energy production for a group of buildings in an area
owned by a public or private organisation responsible for the energy costs
associated with running the those buildings
 Supplies consultancy services to help customers select the most energy efficient
building renovation & energy infrastructure investments
 Implements building renovations as part of an Integrated Energy Contract (IEC)
 As part of the energy supply provision the production, storage/retrieving &
buying/selling of energy is optimised to increase profits & reduce CO2
emissions
 The energy produced by renewables in the area is sold to an external energy
supply company when it is profitable to do so
11
Business models
IDEAS
 In the case of an integrated energy contractor
the EPNSP is formed by a joint venture between
 an ESCO to implement run and maintain the renewable energy plant
 a building construction company to implement the building
renovations.
 an environmental consultancy, to provide the information required to
understand the ROI on the different renewable energy technologies
12
IDEAS business models
 Key requirements
 Smart control of production storage and sale of DREG
 dynamic tariffs which support the local consumption of DREG.
IDEAS
 Based on the use of
biofuel powered
CHP combined with
other forms of
renewable energy
to meet local
demand
 Revenue streams
are rooted in the
inherent efficiency
of producing heat
& electricity
together
 Key technical
innovation
optimising the
production storage
and buying and
selling of energy to
increase profits
13
IDEAS
Thank you
www.ideasproject.eu
[email protected]
Acknowledgements
The IDEAS Collaborative Project (Grant Agreement No. 600071) is co-funded by the European
Commission, Information Society and Media Directorate-General, under the Seventh
Framework Programme (FP7), Cooperation theme three, “Information and Communication
Technologies”