Ref. Ares(2018)5602201 - 31/10/2018 Utility Business Model Transformation through human-centric behavioural interventions and ICT tools for Energy Efficiency D6.3 UtilitEE Market Report – First Version Version number: 0.7 Dissemination Level: PU Lead Partner: SOLINTEL Due date: 31/10/2018 Type of deliverable: R STATUS: Final Copyright © 2018 UtilitEE Project This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 768600 D6.3 UtilitEE Market Report – First Version Published in the framework of: UtilitEE - Utility Business Model Transformation through human-centric behavioural interventions and ICT tools for Energy Efficiency UtilitEE website: www.utilitee.eu Authors: Hugo Grasset – Solintel Dimitris Panopoulos – Suite 5 Evangelos Zacharis – Hypertech Eva Muñoz – ETRA I+D Revision and history chart: VERSION DATE EDITORS COMMENT Creation of ToC for consolidation of market 0.1 31/08/2018 Solintel analysis and research Assessment of ToC and contribution on utility 0.2 20/09/2018 Solintel level solutions. 0.3 10/10/2018 Solintel First draft of D6.3 0.3 12/10/2018 Suite 5 Comments and feedback to be addressed 0.4 26/10/2018 Solintel Final version for review 0.5 30/10/2018 Suite 5 Final comments and additions 0.6 31/10/2018 ETRA Review process 0.7 31/10/2018 Hypertech E.C. Submission Disclaimer: This document reflects only the author’s views and the Commission is not responsible for any use that may be made of the information contained there 2 D6.3 UtilitEE Market Report – First Version Table of content 1 Executive summary ............................................................................... 8 2 Objectives of the report ......................................................................... 9 2.1 Relation with Other Deliverables ....................................................... 9 2.2 Structure of the Document ............................................................. 10 3 Introduction and Methodological approach .............................................. 11 4 General Market and Competitive Overview ............................................. 15 4.1 Utilities market in Europe – Future challenges and requirements for survival ................................................................................................ 18 4.2 Energy efficiency for buildings in the EU ........................................... 23 4.2.1 Market Overview Energy Service Companies .................................. 23 4.2.2 Integration of ICT, IoT and energy management systems for ESCOs and facility managers........................................................................... 30 4.2.3 Market Drivers/Barriers ............................................................... 32 4.2.4 PESTLE Analysis ......................................................................... 33 4.3 Demand response market and aggregators in the EU ......................... 36 4.3.1 Market overview ......................................................................... 36 4.3.2 Market Drivers and Barriers: Optimal market, macroeconomic and environmental configurations ................................................................ 41 4.3.3 PESTLE Analysis ......................................................................... 42 4.4 Consolidation of analyses for business model fit ................................ 45 4.5 Energy Management Systems and Solutions ..................................... 51 4.5.1 Smart homes general overview .................................................... 51 4.5.2 Building energy management systems segment (BEMS) .................. 64 4.5.3 Utility level energy management solutions ..................................... 72 4.6 Concluding remarks ....................................................................... 80 5 Technology evaluation & Competition Analysis ........................................ 82 5.1 Competitor product analysis (listing and mapping) ............................ 82 5.1.1 Sensing and Information Management Layer ................................. 82 5.1.2 Enhanced Performance Rating Analytics ........................................ 83 5.1.3 Home/building automation service providers/ Energy management solutions ............................................................................................ 83 5.1.4 Utility level energy management platform market place .................. 85 6 Conclusion .........................................................................................100 3 D6.3 UtilitEE Market Report – First Version 6.1 Summary of achievements ............................................................100 6.2 Future needed developments .........................................................100 7 References ........................................................................................102 8 Annex ...............................................................................................105 8.1 SEDC Grading system: ..................................................................105 8.2 ESCO market attractiveness rating system ......................................106 4 D6.3 UtilitEE Market Report – First Version List of tables Table 2 UtilitEE business models and High Level Use Cases ........................... 16 Table 3 ESCO and EPC regional market data ................................................ 26 Table 4 EPC characterization ...................................................................... 29 Table 5 Detailed country grading of the SEDC 2017 ...................................... 39 Table 6 ESCO market value and size indicators ............................................ 46 Table 7 ESCO market scoring ..................................................................... 46 Table 8 SEDC Overall rescaled grading ........................................................ 48 Table 9 UMOI grading system .................................................................... 48 Table 10 UMOI Scores ............................................................................... 50 Table 11 Summary of communications and network technologies for home area networks [10] .......................................................................................... 60 Table 12 Porter´s 5 forces analysis HEMS/HAS market.................................. 63 Table 13 Porter´s 5 forces analysis for the BEMS market ............................... 71 Table 14 Porter´s 5 forces analysis Utility Solutions ...................................... 80 Table 13 Smart home gateway competitors ................................................. 82 Table 14 Energy Dashboards/eDECS competitors ......................................... 83 Table 15 BEMS competitors ....................................................................... 85 Table 16 HEMS competitors ....................................................................... 85 Table 17 Utility level competition analysis ................................................... 86 Table 18 Demand Response Systems for Utilities .......................................... 91 Table 19 Behavioural / Customer Engagement comparative analysis ............... 93 Table 20 Vertical vendors comparative analysis ............................................ 95 Table 21 SWOT analysis for the UtilitEE solution ........................................... 99 Table 22 DR Access to market grading criteria [7] .......................................105 Table 23 Service Providers access to market grading criteria [7] ...................105 Table 24 Product Requirements grading criteria [7] .....................................106 Table 25 M&V grading criteria [7] ..............................................................106 Table 26 Overall grading criteria [7] ..........................................................106 Table 27 ESCO market size grading scale ...................................................107 Table 28 ESCO market value grading system ..............................................107 Table 29 Overall ESCO market attractiveness .............................................107 List of Figures Figure 1 Methodology employed for T6.2 completion ..................................... 12 Figure 2 UtilitEE target market ................................................................... 15 Figure 3 Decoupling of GDP growth and electricity sales [4] ........................... 18 Figure 4 Earnings of the top 20 European utilities (IEA) ................................ 19 Figure 5 Energy savings through deployment of available EE technologies by 2020 [5] ................................................................................................. 21 Figure 6 European energy service company market ...................................... 24 Figure 7 Energy efficient product and services revenue by product type Europe 25 Figure 8 Traditional Energy Management Approach [16] ................................ 31 Figure 9 Smart Building ESCO approach [16] ............................................... 32 5 D6.3 UtilitEE Market Report – First Version Figure 10 PESTLE analysis for ESCO and energy efficiency market .................. 35 Figure 11 Demand Response SEDC [21] ...................................................... 36 Figure 12 Demand Response Potential and Percentage of Peak Load in the EU . 37 Figure 13 Map of Explicit Demand Response development in Europe today ...... 40 Figure 14 PESTLE analysis for DR and Aggregators market in Europe .............