Periodic Reporting for period 2 - SmartSPIN (Smart energy services to solve the SPlit INcentive problem in the commercial rented sector)
Période du rapport: 2023-03-01 au 2024-12-31
Across Europe, buildings account for 40% of energy consumption and 36% of carbon emissions. It is estimated that 75% of buildings in the European Union (EU) are inefficient, yet only 1% of buildings are renovated each year. According to a report by BPIE, approximately 25% of Europe’s 25 billion m2 of useful building floor area is accounted for by non-residential buildings and are often owned by a commercial landlord who rents or leases all or parts of the building to one or more tenants. One of the major barriers to energy efficient building renovations in commercially rented buildings is the split incentive problem. Removing the split incentive problem is a European priority as evidenced by Article 19 of the Energy Efficiency Directive (EED).
SmartSPIN project has developed, tested and validated an innovative business model in 3 pilot regions in Europe (Spain, Greece and Ireland) for Energy Service Companies (ESCOs) that leads to greater uptake of Smart Energy Services (SES) deployed via performance-based contracting in the commercial rented sector. This sector has huge potential for energy savings but has avoided the use of performance based approaches like energy performance contracts. The objective of the project are -
1. To demonstrate the feasibility, effectiveness and advantages of the SmartSPIN innovative business model that combines both energy and non-energy benefits in a smart energy services offering for the commercial rented sector.
2. To address the barriers that prevent the commercial rented sector from engaging in energy services, energy efficiency projects and performance based contracting.
3. To demonstrate how big data generated from smart equipment can be used to better control energy consumption in buildings and more accurately measure and verify energy savings and flexible energy consumption.
4. To develop an innovative business model and new contractual templates that allow the proposed SES to be deployed in the commercial rented sector.
5. To engage and train key market stakeholders (ESCOs, landlords, tenants, industry bodies, M&V practitioners, smart technology manufacturers) in the deployment of the SmartSPIN business model.
SmartSPIN project has developed, tested and validated an innovative business model in 3 pilot regions in Europe (Spain, Greece and Ireland) for Energy Service Companies (ESCOs) that leads to greater uptake of Smart Energy Services (SES) deployed via performance-based contracting in the commercial rented sector. This sector has huge potential for energy savings but has avoided the use of performance based approaches like energy performance contracts. The objective of the project are -
1. To demonstrate the feasibility, effectiveness and advantages of the SmartSPIN innovative business model that combines both energy and non-energy benefits in a smart energy services offering for the commercial rented sector.
2. To address the barriers that prevent the commercial rented sector from engaging in energy services, energy efficiency projects and performance based contracting.
3. To demonstrate how big data generated from smart equipment can be used to better control energy consumption in buildings and more accurately measure and verify energy savings and flexible energy consumption.
4. To develop an innovative business model and new contractual templates that allow the proposed SES to be deployed in the commercial rented sector.
5. To engage and train key market stakeholders (ESCOs, landlords, tenants, industry bodies, M&V practitioners, smart technology manufacturers) in the deployment of the SmartSPIN business model.
The overall work is divided into 7 work Packages (WP). During course of the project the following activities have been undertaken.
In WP1, ethics approval was obtained from Social Research Ethics Committee of University College Cork, Data and IP management plan was developed and methodology for evaluation and monitoring of performance indicators was developed and key performance indicators of the project were calculated.
In WP2, review of SES market for commercial rented sector was conducted. This review includes review of existing business models for smart energy services, maturity of ESCO and SES market and review of policies supporting uptake of SES in the SmartSPIN pilot countries. Finally a list of recommendations was drew as the learnings from above mentioned reviews to enhance and support the uptake of SmartSPIN service.
In WP3, a review of legal challenges preventing landlords/tenants to undertake performance-based contracts to improve energy efficiency was conducted along with review of green leasing and on-bill financing contracting option. Specific functions and contractual elements to automate the financial transactions between involved parties were identified. A set of guidelines was developed to overcome the split incentive issue based on the feedback and recommendations from external advisory board members. Contractual service was defined. SmartSPIN contractual template and development of dynamic tariff structure was developed.
In WP4,an interactive assessment tool and a platform-agnostic predictive model, each designed to support efficient decision-making was developed. Early building performance diagnostics tool, which automatically calculates the energy signature of a building was developed. A methodology for an automated M&V workflow for estimating the impact from energy retrofits in buildings and a tool users was developed.
In WP5, initially planned pilot buildings in Ireland and Greece that were mentioned in Grant Agreement were changed due to accessibility and operational reasons. Site preparation and setting baseline for pilot buildings was carried out and then installation of control measures and energy efficiency measures was carried out. Validation of implemented SmartSPIN service was carried out at all the pilot building through online survey and one-to-one meetings with pilot participants. A gamification app was developed with the aim to engage with the tenants of pilot building and encourage them to reduce their energy consumption. M&V methodology developed in WP4 was tested in WP5 using data from the building pilots and other open datasets where needed.
In WP6, SmartSPIN business model & value proposition canvas were developed. Best practice guide for ESCOs, Landlords and tenants and guidelines for policymakers were developed. Finally, a set of infographics and factsheet were developed reflecting the SmartSPIN business model and sharing of savings between ESCOs, Landlords and Tenants based on the data collected from the pilot buildings
In WP7, a systematic value chain and stakeholder analysis was complete. Two rounds of online survey targeting the SmartSPIN stakeholders (ESCOs, Landlords, Tenants, Facility Managers) is complete and in total 60 responses were received. Project website, branding, logo, Social media channels (LinkedIn, YouTube and Twitter) and other promotional materials were developed at the start of the project. 2 internal exploitation workshop and 6 external exploitation workshop was organised. In total 6 peer-reviewed and 2 non-scientific publications were published by the consortium members and 6 project newsletters were shared with the project stakeholders. 4 press release were released and 4 webinars were organised. In total the project was disseminated in 16 national/international events by the consortium members. Two project videos were developed, first introductory video of the project with the aim to raise awareness of the project scope and objectives and second one with the aim to showcase the results, outcomes and learnings of the project. 2 rounds of project review meetings were organised with the External Advisory Board of the project. European exploitation workshop and Final event of the project was organised in Sustainable places 2024 in Luxembourg.
In WP1, ethics approval was obtained from Social Research Ethics Committee of University College Cork, Data and IP management plan was developed and methodology for evaluation and monitoring of performance indicators was developed and key performance indicators of the project were calculated.
In WP2, review of SES market for commercial rented sector was conducted. This review includes review of existing business models for smart energy services, maturity of ESCO and SES market and review of policies supporting uptake of SES in the SmartSPIN pilot countries. Finally a list of recommendations was drew as the learnings from above mentioned reviews to enhance and support the uptake of SmartSPIN service.
In WP3, a review of legal challenges preventing landlords/tenants to undertake performance-based contracts to improve energy efficiency was conducted along with review of green leasing and on-bill financing contracting option. Specific functions and contractual elements to automate the financial transactions between involved parties were identified. A set of guidelines was developed to overcome the split incentive issue based on the feedback and recommendations from external advisory board members. Contractual service was defined. SmartSPIN contractual template and development of dynamic tariff structure was developed.
In WP4,an interactive assessment tool and a platform-agnostic predictive model, each designed to support efficient decision-making was developed. Early building performance diagnostics tool, which automatically calculates the energy signature of a building was developed. A methodology for an automated M&V workflow for estimating the impact from energy retrofits in buildings and a tool users was developed.
In WP5, initially planned pilot buildings in Ireland and Greece that were mentioned in Grant Agreement were changed due to accessibility and operational reasons. Site preparation and setting baseline for pilot buildings was carried out and then installation of control measures and energy efficiency measures was carried out. Validation of implemented SmartSPIN service was carried out at all the pilot building through online survey and one-to-one meetings with pilot participants. A gamification app was developed with the aim to engage with the tenants of pilot building and encourage them to reduce their energy consumption. M&V methodology developed in WP4 was tested in WP5 using data from the building pilots and other open datasets where needed.
In WP6, SmartSPIN business model & value proposition canvas were developed. Best practice guide for ESCOs, Landlords and tenants and guidelines for policymakers were developed. Finally, a set of infographics and factsheet were developed reflecting the SmartSPIN business model and sharing of savings between ESCOs, Landlords and Tenants based on the data collected from the pilot buildings
In WP7, a systematic value chain and stakeholder analysis was complete. Two rounds of online survey targeting the SmartSPIN stakeholders (ESCOs, Landlords, Tenants, Facility Managers) is complete and in total 60 responses were received. Project website, branding, logo, Social media channels (LinkedIn, YouTube and Twitter) and other promotional materials were developed at the start of the project. 2 internal exploitation workshop and 6 external exploitation workshop was organised. In total 6 peer-reviewed and 2 non-scientific publications were published by the consortium members and 6 project newsletters were shared with the project stakeholders. 4 press release were released and 4 webinars were organised. In total the project was disseminated in 16 national/international events by the consortium members. Two project videos were developed, first introductory video of the project with the aim to raise awareness of the project scope and objectives and second one with the aim to showcase the results, outcomes and learnings of the project. 2 rounds of project review meetings were organised with the External Advisory Board of the project. European exploitation workshop and Final event of the project was organised in Sustainable places 2024 in Luxembourg.
The innovative approach of the SmartSPIN business model is tripartite energy service contract between Landlord, Tenants and ESCOs and its 2 stage implementation approach. The first stage in the SmartSPIN business model is to interact with tenants and implement low cost actions with short payback periods. Aim of the first stage is to build trust between ESCO, landlord and tenant as the ESCO offers guaranteed saving for these actions. And the second stage involves interaction with landlord to implement higher cost measures with the guaranteed saving.
During the project the expected impacts triggered by the project are 6.51GWh/year of primary energy saving, 2.08GWh/year of renewable energy generation, 1708.9tCO2/year GHG emission saving, 1.977m€ investment in sustainable energy and 32 new jobs in energy efficiency value chain.
During the project the expected impacts triggered by the project are 6.51GWh/year of primary energy saving, 2.08GWh/year of renewable energy generation, 1708.9tCO2/year GHG emission saving, 1.977m€ investment in sustainable energy and 32 new jobs in energy efficiency value chain.