1. Can distributor system operators play a role in the European Union energy efficiency financing game?
- Author
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Bianco, Vincenzo, Sonvilla, Paolo Michele, and Prado, Adriana Villoslada
- Subjects
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ENERGY consumption , *POWER resources , *BUILDING repair , *BUSINESS models , *CONSTRUCTION materials - Abstract
On-bill schemes are innovative financial frameworks for supporting energy renovation based on private capital. Direct intervention of public authorities may not be necessary. The pivotal role is assumed by energy utilities which are the originators of the business and act as market aggregators. On-bill schemes are based on a simple principle, namely the utility supports the energy renovation of final users by providing the upfront capital to repay on the utility bill. This implies that energy supply and renovation services are provided by the same company. This could be a limitation since the user may be obliged to stay with the same energy supplier for all the duration of the on-bill scheme. Even more complications can arise when the dwelling is sold or rent to another tenant. For such a reason it is important to find solutions for the possible decoupling of energy supply and energy renovation services. The present paper introduces an innovative business model which involves Distribution System Operators or other designated entities acting as market facilitators supporting the decoupling between energy supply and building energy renovation services. To characterise precisely the business ecosystem and the relations among the different actors, the Value Flow Model is employed. • On-bill schemes are useful tools for supporting deployment of energy efficiency measures. • Innovative business models allow to remove relevant market barriers. • The involvement of DSOs can improve the flexibility of on-bill schemes. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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