Project title: Smart energy services to solve the SPlit INcentive problem in the commercial rented sector
Funding programme: Horizon 2020
Action type: Coordination & Support Action (CSA)
Duration: 01/09/2021 – 31/08/2024
Overview of the SmartSPIN project
In Europe, buildings account for 40% of energy consumption and 36% of the generated carbon emissions. According to latest research studies, 75% of all buildings in the European Union are energy inefficient. Only 1% of the buildings are renovated each year.
In that context, Europe has 25 billion square meters of useful building floor area and 25% of which are non-residential buildings. Around 28% of these buildings are wholesale of retail premises, 23% are offices, 11% are hotels and restaurants and 4% are sports facilities. These types of building are often owned by a commercial landlord who rent and/or leases all or just parts of the building to one or more tenants.
Some of the key market barriers to energy efficient building renovations in commercially rented buildings is the split incentive problem – i.e., the conflict that arises when the benefits of a transaction do not accrue to the person who pays for it.
SmartSPIN aims at developing a new business model to improve the energy efficiency and flexibility in commercial rented sector. The new business solutions are expected to benefit all parties involved and allow both owners and tenants to profit from the cost, energy efficiency improvements and flexibility services in a more transparent way. For a three-years-period, the project will demonstrate, test, validate and implement the smart energy solutions in three European pilot sites situated in Spain, Greece and Ireland.
Furthermore, the novel SmartSPIN business model integrates the latest advanced smart energy services concepts and technologies available on the market along with other non-energy services. Combined with advanced measurement and verification concepts for data analytics from smart equipment and a new contractual approach that fairly splits the benefits between all stakeholders, SmartSPIN build trust between the parties and pave the way for a greater uptake of smart energy services in the commercial rented sector.
The SmartSPIN concept aims at the removing the current market barriers for integrating energy efficiency smart services in the commercial rented sector. Thereby, successfully develop a new business model beneficial for all parties involved. That will be achieved through test demonstrations and data analysis of three real case studies exploring how smart energy services can be deployed as an effective business model practice in Europe. The project will also provide tools to train all stakeholders involved in the value chain, as well as supporting policies to drive the market uptake.
More specifically, SmartSPIN’s objectives are as follows:
Our involvement in the SmartSPIN project
PNO Innovation supports EGEN (part of the PNO Group) in the implementation of the Work Package on Communication, Dissemination and Exploitation.