Generalised business models

This report concerns business models for Energy Positive Neighborhoods (EPNs) and is based on research conducted as part of the IDEAS project. EPNs are areas in which annual energy demand is lower than annual energy supply from local renewable energy sources. Their energy infrastructures are connected to and contribute to the efficient operation and security of the wider energy networks. The aim is to support the integration of distributed renewable energy generation into wider energy networks and provide a functional healthy user friendly environment with as low energy demand and little environmental impact as possible. The IDEAS project has developed business models to enable existing companies with expertise in the energy industry to evolve into a new type of service provider. We called this new type of service provider an Energy Positive Neighbourhood Service Provider (EPNSP). The key service required for the development of an EPN is the optimisation of the production, storage/retrieval and selling of local renewable electricity and heat in the local area. Distribution Network Operators (DNOs), Energy Service Companies (ESCOs) and District Heating (DH) Providers are the envisaged service providers in the business models developed to enable the roll out of EPNs in the IDEAS project. There is an overlap in the unique value propositions for these types companies to extend their current business models and become EPNSPs. Specifically: In the case of DNOs; • Up to a 100 % reduction in the investments required for the reinforcement of the wider electricity distribution network to service new urban developments, • Significant reductions in the total investments in network reinforcement required to integrate DREG into current electricity networks, • Enabling the incremental upgrading of the ‘dumb’ electricity distribution networks to the 'smart' networks required to integrate DREG into current electricity networks. In the case of DH Providers and ESCOs • Up to 30% increase the revenue generation from distributed renewable electricity and heat production • Up to 10 % increase in the efficiency of distributed renewable plant.