innovative
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DETECTION, OPTIMIZATION AND MONETIZATION OF ECONOMIC FLOWS GENERATED

BY ENERGY EFFICIENCY IN THE URBAN TERRITORY

Issues

Making investments that result in gains in urban energy efficiency is a socially desirable object. It is rarely possible, however, to evaluate the overall economic value generated by such projects, and this is a major barrier to their implementation.

The reason for this is twofold:

  • on the one hand, the potential for these projects to create economic, societal and environmental value is sometimes little known;
  • on the other, dysfunctions exist amongst stakeholders (information bias, disparity of interests, etc.) that must be identified before they can be overcome.

DEFINITION

An externality is an effect of a project on its stakeholders that is not subject to an economic transaction between them. It may be positive (increased comfort or property value, etc.) or negative (pollution, CO2 emissions, etc.).

Objectives

This research project has the ambition to reconfigure actors’ interactions to enable optimal energy efficiency solutions to emerge.

  • To achieve its aim, the project first seeks to go beyond classic market models by developing a method to evaluate energy efficiency projects that also assigns a value to their externalities or non-market effects (“monetization” element).
  • It also proposes contractual solutions for the implementation of these energy efficiency solutions on a win-win basis, where the stakeholders in the investment contribute in proportion to the overall benefit they will receive (“contracting” element).
  • Finally, it relies on previous research to identify innovative business models for energy efficiency.

Expected results

  • Design of a tool to value (monetise) the non-market effects of investments
  • Development of a methodology for optimising an energy efficiency investment using the most appropriate contractual frameworks and economic models

ECONOMIC TRANSACTION BETWEEN TWO MARKET PLAYERS

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SCENARIO #1

I increase the market value of the transaction by assigning an agreed monetary value to its non-market effects.

  • I incorporate a previously unvalued element of the transaction’s effects
  • I MONETIZE.

SCENARIO #2

I change the rules of the game between the actors to unblock their relationship and increase the potential of the market in which they operate.

  • I propose a different relationship between the actors.
  • I CONTRACTUALIZE

SCENARIO #3

I profoundly change the structure of the market by creating disruptions in the classic value creation chain.

  • I rely on the circular economy, on functionality, on the contribution of digital, etc.
  • I create an INNOVATIVE BUSINESS MODEL.