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IDEAS Business models to underpin Energy Positive Neighbourhoods Dr Tracey Crosbie Teesside University INTERNATIONAL CONFERENCE SUSTAINABLE PLACES October.

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Presentation on theme: "IDEAS Business models to underpin Energy Positive Neighbourhoods Dr Tracey Crosbie Teesside University INTERNATIONAL CONFERENCE SUSTAINABLE PLACES October."— Presentation transcript:

1 IDEAS Business models to underpin Energy Positive Neighbourhoods Dr Tracey Crosbie Teesside University INTERNATIONAL CONFERENCE SUSTAINABLE PLACES October 2014 NICE

2 IDEAS What is it ? 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

3 IDEAS IDEAS Partners 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

4 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 Essentials 3

5 IDEAS Essentials 4  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.  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.

6 IDEAS  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 & CO 2 at pilot sites validated IDEAS business models & tools which optimise  wholesale energy trading  & local energy supply & demand solutions Essentials 5

7 IDEAS Demonstrate how energy positive neighbourhoods can be cost effectively & incrementally implemented by designing & validating The IDEAS Key RTD 6  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

8 IDEAS Pilot sites 7 The Omenatarha residential neighbourhood in the Skaftkärr area in Porvoo Finland Part of a University campus in Bordeaux, France which houses the University Institute of Technology 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

9 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) Business models 8

10 IDEAS Business Models 9  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

11 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 Business models 10

12 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 Business models 11

13 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 Business models 12

14 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  Key requirements Smart control of production storage and sale of DREG dynamic tariffs which support the local consumption of DREG. IDEAS business models

15 IDEAS Thank you Acknowledgements The IDEAS Collaborative Project (Grant Agreement No ) 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” 14


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