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Crowdfunding for a low carbon energy system: addressing major challenges for EU-wide public and private investments in energy and carbon saving measures

Objective

A low carbon energy system is realizable with current proven technologies provided that appropriate investments for installing these technologies are made. The challenge with energy-efficiency measures is that they require high initial investments and are only profitable in the long run. Thus, many SMEs, non-profit organizations and local authorities cannot afford that or simply lack the interest of investing in these types of actions.
bettervest bridges the gap between funding and action. It is the first crowdfunding platform that focuses on energy-efficiency projects from a size of 5.000 to 200.000 Euros and allows the crowd to benefit from the savings generated through the reduced energy consumption. A defined percentage of the savings is distributed to the crowd until the investment plus a previously agreed upon profit has been completely paid back. Additionally, the project owners can use the crowdfunding project as a customer bonding and staff participation measure that rise awareness for their corporate social responsibility activities and increases identification with the firm.
The Federal Ministry for Economic Affairs and Energy (BMWi) estimates that the benefit of energy-efficiency measures in Germany belongs to 27 Billion Euros in 2012 by avoiding imports of fossil energy carriers. McKinsey estimates that again 850.000 jobs could be generated in the energy-efficiency sector in Germany by 2020. Until 2012 around 500.000 jobs have been generated (BMWi 2014). Applied to the EU these numbers should be multiplied accordingly.
bettervest receives in sum a theoretical impact over an average contract period of five years of 3.750 MWh energy-savings and 4.500 tons carbon reductions for every 1.000.000 Euros funded within the crowd. The already funded projects would not have been implemented without the innovative finance instrument of bettervest.
This proposal aims to explore the opportunity to expand bettervest's activities to other European countries.

Field of science

  • /engineering and technology/environmental engineering/energy and fuels/renewable energy
  • /engineering and technology/environmental engineering/energy and fuels/fossil energy

Call for proposal

H2020-SMEINST-1-2014
See other projects for this call

Funding Scheme

SME-1 - SME instrument phase 1

Coordinator

bettervest GmbH
Address
Schweizer Str. 28
60594 Frankfurt (Main)
Germany
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
EU contribution
€ 50 000