Current Business Model Practices in Energy Master Planning for Regions, Cities and Districts

Abstract

AbstractRoughly 97% of the European Union (EU) building stock is not considered energy efficient, and 75–85% of it will still be in use in 2050 (Artola et al., Boosting building renovation: What potential and value for Europe? 2016). Residential buildings account for around two thirds of final energy consumption in European buildings. The rate at which new buildings either replace the old stock or expand the total stock is about 1% per year. Similarly, the current renovation rate of existing buildings in the EU is about 1–2% of the building stock renovated each year. Renovation strategies on building levels need to be derived from a combination of energy efficiency upgrades to buildings and the use of renewable energy to decarbonize the energy supply, on a district or city scale. IEA EBC Annex 75 subtask D2 focuses on promoting cost-effective building renovation at district level combining energy efficiency and renewable energy systems, by focusing on the business models that can make implementation possible. This paper intends to provide an overview of the business model archetypes that can support the development of district demand and/or supply of energy-efficient building renovations and/or renewable energy solutions by targeting various types of stakeholders. It builds upon existing literature to gain insights into the current distributed energy business model landscape. Further, implementation strategies are identified that focus on a holistic evaluation of the expected energy and CO2 performance of the site and optimized infrastructure investment pathways.