Models focussing on energy services rather than energy itself.

Many companies in the energy efficiency business start with a technological focus, even when they offer a service. But after some time, many of them experience a stagnation in the uptake of their business.

IEA task 25 shows that a switch towards a more service-oriented or user-centric focus contributes to a better uptake. This webinar provides the lessons from over a hundred business models in energy efficiency and provides some insights on how to become more user oriented.

Investments in energy efficiency not only result in a reduction of energy consumption —the energy benefit— but they also entail non-energy benefits such as improved product quality, reduced production time or improved comfort in sales area. Non-energy benefits significantly improve the business case of energy-efficiency investments in the business sector by raising their strategic character.

Within this context, the aim of this webinar is to discuss a methodology to describe and analyze the industrial non-energy benefits of energy efficiency. Linking energy, operational, strategic and financial aspects, this new conceptual framework enables to move away from the common view of energy as a commodity (where the only goal is to save kilowatt-hours) to adopt a new perspective on energy and energy services as strategic value for businesses.

This methodology will be further developed and documented by Task 26 Multiple Benefits of Energy Efficiency, a project of IEA Demand Side Management Energy Efficiency Technology Collaboration Program, in close collaboration with practitioners, academic researchers and public programmers. People or Institutions interested by Task 26 are most welcome to contact me.

Multiple benefits will also be discussed in-depth with a panel at this year’s IEPPEC June 7-9 Amsterdam.

This webinar focuses on first results of Task 25, a project aimed at learning about new business models and propositions that actually contribute to the market uptake of Energy Efficiency. We will discuss what type of business models and propositions work when, where and why.  We will concentrate on learnings about the influence of user centric business development, the role of entrepreneur and his/her skills and the impact of wider context. Examples in retrofitting, smart energy services, heating, and lighting will illustrate the presentation.

This work in conducted for the International Energy Agency Demand Side Management Technology Initiative. 

Learning curves show that government deployment programmes do not subsidise technologies but provide required learning investments to make energy efficiency and low-carbon supply technologies competitive in mass markets. The programmes spur investment and market experience for currently expensive technologies and the learning curve shows how these experiences continually reduce cost and improve performance for the deployed technologies. This technology learning pervades all levels of organisations that produce, install and operate technology. This demonstrates that from identical boundary conditions many energy futures can be obtained, demanding the same economic resources but having completely different technological structures and thus very different properties regarding environment, energy security and job creation. Learning curves challenge current dogma on the long-range efficiency of the market and point to the need to realize political choices in deployment programmes.

Technology Procurement where industry is challenged to produce technologies better than what the market presently provides has been used in Sweden, Europe and in the US with stunning results, BAT is made BAT+. The method has been commonly used in the military sector and for large infrastructure but can be applied with success also on “fragmented” markets for energy efficient technologies.

A procedure for collaborative procurement actions for the introduction of innovative, more energy efficient products was developed and tested in a number of pilot projects by the IEA DSM-Programme. Concrete results included a clothes drier with the energy use cut by half (the first “Class A” drier), electric motors with losses reduced by 20-40%, and a “copier of the future” where the energy use was reduced down to 25%.