Report on novel business models and main barriers in the EU energy system Deliverable D2.3 Eva Boo1, Soraya Molinero1, Estibaliz Sanvicente1, Paulo de Melo2, Alberto Landini2, Josep Otal3, Orsetta Chichinato4, Tiziana Melchiorre4, Aidan Melia5. 1 LGI Consulting, Paris, France 2 STAM SRL, Genova, Italy 3 Enerbyte Smart Energy Solutions SL, Barcelona, Spain 4 REDINN SRL, Livorno, Italy 5 Integrated Environmental Solutions Limited, United Kingdom http://www.entrust-h2020.eu @EntrustH2020 This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 657998 Report on novel business models and main barriers in the EU energy system Document Information Grant Agreement #: 657998 Project Title: Energy System Transition Through Stakeholder Activation, Education and Skills Development Project Acronym: ENTRUST Project Start Date: 01 May 2015 Related work package: WP 2: Mapping of Energy system Related task(s): Task 2.3 Report on novel business models and main barriers in the EU energy system Lead Organisation: LGI Consulting Submission date: 31 January 2017 Dissemination Level: PU - Public History Date Submitted by Reviewed by Version (Notes) 21 October 2016 Eva Boo UCC, LJMU, Redinn A 27 October 2016 Soraya Molinero UCC B 24 January Estibaliz Sanvicente UCC C 27 January Estibaliz Sanvicente UCC D January 2017 Page 2 of 125 Report on novel business models and main barriers in the EU energy system Table of Contents 1 Introduction ......................................................................................................................... 16 1.1 Introduction to the deliverable ................................................................................................... 16 1.2 Deliverable structure .................................................................................................................. 16 2 The role of business models in the energy transition ............................................................ 18 2.1 An energy system in continuous evolution ................................................................................. 18 2.1.1 Trends in the energy system ..................................................................................................... 18 2.1.2 Barriers for the energy transition .............................................................................................. 19 2.2 New business models to foster the energy transition ................................................................. 21 3 Business model innovation in the energy system .................................................................. 23 3.1 Business model theory ............................................................................................................... 23 3.1.1 Framework tools for defining business models ......................................................................... 23 3.2 Innovation in business models ................................................................................................... 27 3.2.1 Innovation framework for new business models in the energy system .................................... 29 4 A benchmark of innovative business models in the energy system ....................................... 34 4.1 Energy production and supply .................................................................................................... 34 4.1.1 Value chain ................................................................................................................................ 35 4.1.2 Mapping of business models ..................................................................................................... 35 4.1.3 Analysis of the innovation trends and value chain .................................................................... 46 4.2 Buildings .................................................................................................................................... 49 4.2.1 Value chain ................................................................................................................................ 49 4.2.2 Mapping of business models ..................................................................................................... 50 4.2.3 Analysis of the innovation ......................................................................................................... 71 4.3 Manufacturing Industry .............................................................................................................. 74 4.3.1 Value chain ................................................................................................................................ 74 4.3.2 Mapping of business models ..................................................................................................... 75 4.3.3 Analysis of the innovation trends and value chain .................................................................... 85 4.4 Transport - Urban mobility ......................................................................................................... 88 4.4.1 Value chain ................................................................................................................................ 88 4.4.2 Mapping of business models ..................................................................................................... 89 4.4.3 Analysis of the innovations trends and value chain ................................................................ 100 5 Insights and conclusion ....................................................................................................... 103 6 Bibliography ....................................................................................................................... 105 7 Appendix ............................................................................................................................ 110 January 2017 Page 3 of 125 Report on novel business models and main barriers in the EU energy system List of Tables Table 1: Megatrends and drivers of change of the energy system in Europe ................................... 18 Table 2: Partners of partners examples in the review countries ....................................................... 36 Table 3: Pure retailer examples in the review countries .................................................................... 37 Table 4: Energy cooperatives examples in the review countries ...................................................... 38 Table 5: Product innovator examples in the review countries ........................................................... 39 Table 6: Grid manager examples in the review countries ................................................................. 40 Table 7: Value-added provider examples in the review countries ..................................................... 41 Table 8: Virtual utility examples in the review countries .................................................................... 42 Table 9: Specialised provider examples in the review countries ....................................................... 43 Table 10: Pure play merchant examples in the review countries ...................................................... 44 Table 11: Gentailer examples in the review countries ....................................................................... 45 Table 12: Automatic energy metering and monitoring examples in the countries reviewed ............. 51 Table 13: Chauffage examples in the countries reviewed ................................................................. 52 Table 14: MEEPA examples in the countries reviewed ..................................................................... 53 Table 15: SSA examples in the countries reviewed .......................................................................... 54 Table 16: Integrated Project Delivery examples in the countries reviewed ....................................... 55 Table 17: Alliancing examples in the countries reviewed .................................................................. 56 Table 18: Bundling examples in the countries reviewed ................................................................... 57 Table 19: Competitive partnership examples in the countries reviewed ........................................... 58 Table 20: Incremental Partnership examples in the countries reviewed ........................................... 59 Table 21: Lease/Rent Roof/Land model examples in the countries reviewed .................................. 60 Table 22: Leasing of Renewable Energy Equipment model examples in the countries reviewed .... 61 Table 23: Platform model examples in the countries reviewed ......................................................... 62 Table 24: EPC model examples in the countries reviewed ............................................................... 63 Table 25: IEC model examples in the countries reviewed ................................................................ 64 Table 26: DBFO model examples in the countries reviewed ............................................................ 65 Table 27: One-Stop-Shop model examples in the countries reviewed ............................................. 66 Table 28: On-bill financing examples in the countries reviewed ....................................................... 67 Table 29: EPDP with payment model examples in the countries reviewed ...................................... 68 Table 30: The electricity bill optimisation model