wp7 – exploitation and sustainability deliverables/… · v3.0 26/01/2016 charlotte fernandez...

WP7–ExploitationandSustainability

Task1–Shortandlongtermexploitation

FinalVersionAuthors:MilaGascó(ESADE)CharlotteFernández(ESADE)FerranBlanch(ESADE)

WP7–ExploitationandSustainabilityD7.1Shortandlongtermexploitation

CIP-ICT-PSP-2012-6–325161

"This project is partially funded under the ICT Policy Support Programme (ICT PSP) as part of theCompetitiveness and Innovation Framework Programme by the European Community"(http://ec.europa.eu/ict_psp).

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Disseminationlevel PU(public)

Contributor(s) FerranBlanch(ESADE)

Reviewer(s) VictoriaCochrane(ESADE)FedericoPrandi(GRAPHITECH)

Editor(s) RaffaeleDeAmicis(GRAPHITECH)

Partnerincharge(s) ESADE

Duedate 31/01/2016

SubmissionDate 29/01/2016

REVISIONHISTORYANDSTATEMENTOFORIGINALITY

Revision Date Author Organisation Description

V1.0 21/01/2016CharlotteFernandez

ESADE Firstdraft

V2.1 21/01/2016 MilaGascó ESADERevisionsmadeon1stdraft

V2.2 21/01/2016 FerranBlanch ESADECommentsonthefirstdraft

V3.0 26/01/2016CharlotteFernandez

ESADESecondversionofthefinaldocument

V4.0 27/01/2016VictoriaCochrane

ESADERevisionand

correctionoftheFinaldocument

V5.0 29/01/2016 MilaGascó ESADE Finalversion


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Statementoforiginality:This deliverable contains original unpublished work except where clearly indicated otherwise.Acknowledgement of previously publishedmaterial and of the work of others has beenmadethroughappropriatecitation,quotationorboth.

Moreover,thisdeliverablereflectsonlytheauthor’sviews.TheEuropeanCommunityisnotliableforanyusethatmightbemadeoftheinformationcontainedherein.


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TableofcontentTableofcontent.........................................................................................................................................4Acronyms...................................................................................................................................................51 Introduction.........................................................................................................................................6

1.1 Objectivesoftask7.1“Shortandlong-termexploitation”..........................................................71.2 Methodology................................................................................................................................7

2 Marketassessment............................................................................................................................102.1 Targetaudience..........................................................................................................................102.2 Stakeholders...............................................................................................................................162.3 Marketsizeandevolution..........................................................................................................212.4 SUNSHINE’svalueproposition(bytarget)..................................................................................29

3 Individualbusinessplansandstrategies...........................................................................................323.1 Partners’canvases:Summaryandanalysis................................................................................333.2 Partners’businessplans:Summaryandanalysis.......................................................................41

4 Consortiumexploitationplan:SUNSHINEafterSUNSHINE...............................................................454.1 SWOTAnalysisforSUNSHINE.....................................................................................................464.2 SUNSHINEcompetitiveadvantages............................................................................................474.3 Shortandlongtermgeneralexploitation..................................................................................484.4 Overcomingbarrierstosuccessfulexploitation.........................................................................53

5 Conclusions........................................................................................................................................546 References.........................................................................................................................................55

ANNEX..................................................................................................................................................58


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Acronyms

ACER AgencyfortheCooperationofEnergyRegulators BPIE BuildingPerformanceInstituteEuropeCEER CouncilofEuropeanEnergyRegulators

DGEnergy Directorate-GeneralofEnergyEC EuropeanCommission

ECEEE EuropeanCouncilforEnergyEfficientEconomyEED EnergyEfficiencyDirectiveEEFIG EnergyEfficiencyFinancialInstitutionsGroupEEMR EnergyEfficiencyMarketReportEPBD EnergyPerformanceofBuildingsDirectiveEPC EnergyPerformanceCertificateESCO EnergyServiceCompanyESMAP EnergySectorManagementAssistanceProgramEU EuropeanUnionGIS GeographicInformationSystemHVAC HeatingVentilating,andAirConditioningICT InformationandCommunicationsTechnologyIEA InternationalEnergyAgencyIPR IntellectualPropertyRightsJRC JointResearchCenterMSs ManagementSystemsMSCI MorganStanleyCapitalInternationalNEEAP NationalEnergyEfficiencyActionPlanOECD OrganisationforEconomicCo-operationandDevelopmentSEAP SustainableEnergyActionPlanSME SmallandMediumEnterprise

UNEPFI UnitedNationsEnvironmentProgrammeFinanceInitiativeVP ValueProposition


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1 IntroductionBuildingsaccountforapproximately40%ofthewholefinalenergyconsumptionwithinEuropeancommunities (European Commission, 2010). Within this sector, energy is mainly consumed athouseholdlevel:in2009,Europeanhouseholdswereresponsiblefor68%oftotalenergyusedinbuildings,mainlyforspaceheating(almost70%),domestichotwater(14%),lightingandelectricalappliances(13%)andcooking(4%).Withashareofmorethantwothirdsoftheaverageenergyconsumed per residential unit, inefficient heating and cooling systems can cause a long-termnegativeimpactonthegeneralwelfareofEuropeancommunitiesthroughextraneoususeofnon-renewableresources,heating-relatedpollutionandconsiderablefinancialloss.SUNSHINE–“SmartUrbaNServIcesforHIghereNergyEfficiency”–isaEuropeanfundedprojectin the Competiveness and Innovation Framework program that represents a step towards theimprovementofenergyperformanceofnewandexistingbuildings. Itdelivers innovativedigitalservices, interoperable with existing geographic web-service infrastructures, thus supportingimproved energy efficiency at the urban and building level. Specifically, SUNSHINE delivers asmartserviceplatformaccessiblefrombothaweb-basedclientaswellasanAppforsmartphonesandtablets.In particular, the SUNSHINE platform is structured into threemain scenarios,which have beensuccessfullyimplementedduringthethree-yeardeploymentoftheprojectthroughpilots:

Scenario 1. Automatic large-scale assessment of building energy behaviour, based on dataavailable frompublic services (e.g. cadastre, planning data etc.). The information on energyperformances isused toautomaticallycreateurban-scale“energymaps” (or“Energy-maps”)tobeusedforplanningactivitiesandlarge-scaleenergypre-certificationpurposes.Scenario 2. Pilot buildings energy performance management: Localised weather forecastsavailable through interoperable web-services are used to ensure optimisation of energyconsumption of heating/cooling systems at “pilot buildings” level, through automatic alertsthatwillbesenttoboththeSUNSHINEAppinstalledonthesmartphoneofthefinalusersandcentralisedsystemsadoptedbyfirmsinordertomanageadequateenergyefficiencypolicies.

Scenario 3. Remote public lighting management: Lastly, SUNSHINE ensures interoperablecontrol of public illumination systems based on Automatic Meter Reading (AMR) facilitiesremotelyaccessible,via interoperablestandards, fromaweb-basedclientaswellas fromanAppforsmartphonesortablets.


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Theobjectivesoftheprojectaremultipleandthisreportreferstothedevelopmentofbusinessplanstogetherwiththedescriptionofanexploitationstrategyoncetheprojectends.Therefore,thisdocumentcontainstheresultsoftheactivitiesperformedunderWorkPackage7(WP7)and,inparticular,undertask7.1“Shortandlong-termexploitation”.

1.1 Objectivesoftask7.1“Shortandlong-termexploitation”

Theobjectiveof this taskwas thedesignanddevelopmentof individualbusinessplansbyeachpilotpartnerwiththesupportofESADE inordertodefinetheexploitationoftheproject intheshort and long-terms. Pilot partners involved in this task were: Graphitech, Sinergis, TrentinoNetwork, HEP ESCO, GraficaLight, Epsilon, GeoSYS, SET Distribuzione, Informatica Trentina,GIStandard,C3LandMeteogrid.

Severalspecificgoalsofthetaskweredefined:- Toanalyzethemarketandassessthecompetitiveenvironmentsurroundingtheproject.- Todefinethebusinessmodelsfortheexploitationfortheproject’smainresults.- Toanalyze theviabilityandprofitabilityofeachbusinessmodel, including theexpected

impactoftheintroductionofSUNSHINEresultsinalargeeventenvironment.- Topreparearealisticbusinessplanthatwouldestablishguidelinesforthedeploymentof

theSUNSHINEresultsfocusingontechnologyanalysis,distribution,marketing,pricingandsalesstrategy,risksidentificationandfinancialplanning.

Consequently,theexpectedoutputsoftask7.1were:

- MarketassessmentofSUNSHINEtoolsenvironment.- Partners’individualbusinessplans.- Consortiumexploitationplan.

1.2 Methodology

Sincetheexpectedoutputsweremultiple,themethodologydeployedwasmanifold.AbusinessassessmentwasperformedtodescribethecontextinwhichSUNSHINEwouldbeexploited.Thisanalysiswould be used in the subsequent tasks and in the design of individual business plans,which would also form the previous step to the deployment of the last activity: the generalexploitationplanbuiltfromtheConsortiumperspective.


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Regardinghoweachoutputwas carriedout, firstof all, themarketassessmentwasperformedfollowingdeskresearchanalysisinwhichmarketresearchreportsonenergyefficiencyinEuropeandacrosstheworldwerecollectedandanalysed.Then,preliminaryresultsofthisdeskanalysiswere combined with direct interaction with partners during technical meetings in order tocontrastandgathertheirinputasnationalexpertsinthefield.

Second,asastartingpointfortheindividualpartners’businessplancreationandonthebasisofthe results obtained during themarket assessment, the BusinessModel Canvas approach waschosen as the most effective for SUNSHINE. The Business Model Canvas is a strategicmanagementandentrepreneurialtool.Itallowscompaniestodescribe,design,challenge,invent,and pivot their business model. It is a visual chart with elements describing a firm'svalueproposition, infrastructure,customers,and finances.Itassists firms inaligning theiractivitiesbyillustratingpotentialtrade-offs.ThestartingandcentralpointoftheBusinessModelCanvasisthevalue proposition that a company offers to their customers. The key is to obtain a simple andrelevantconceptthathelpsthecompanytosimplifythecomplexityofday-by-daybusiness.Oncethevaluepropositionisclear,severalaspectshavetobeapproached:keypartners,keyactivities,customers,customers’relationships,keyresources,channels,costs,andrevenuesandbenefits.

Duringthetechnicalmeetingthatwasheld inZagreb(Croatia)onthe3rd-5thofMarch2015,aworkshoponbusinessmodelswasorganizedbyESADEandafirstexerciseaboutbusinesscanvastook place. The exercise aimed at helping partners define the value proposition of SUNSHINE,taking into account their organization and business perspective. During the followingmonths,eachpilotpartnerworkedontheelaborationofitscanvas,whichculminatedinitbeingthebasisfor its business plans. To support this process, ESADE organized several individual meetingsthroughSkypeinordertoprovidetherequiredsupporttoeachpartner.

Once all canvaseswere received, ESADE analysed them and shared a preliminary analysiswithpilot partners before introducing a second exercise that focusedonbuilding partners’ businessplansusingthecanvasesasabasis.Thegoalwastotranslatethebusinessmodelthatarosefromthecanvasintoabusinessplan.Threestepsweredefined:1)toexplainthebusinessitself,2)toquantifyit,and3)tolistthekeyactivitiestoimplementit.ThissecondexercisewasperformedbypilotpartnerswiththesupportofESADEfromJuly2015totheendoftheyear.Moreover,ESADEcontinueditsfollow-upontheworkofpilotpartnersthroughwrittencommunication(email)butalso in-personduringthefollowingtechnicalmeetings:Athens(6-7thOctober2015),Trento(15-16thDecember2015),andBologna(12-13thJanuary2016).Duringthosemeetings,pilotpartnersalsopresentedtheirbusinessplanstothewholeConsortiumduringa10-minutepresentation.Asa result of thiswhole process, 12 business canvases and plans have been developed. They areavailableintheAnnex.


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Finally, regarding the general exploitation, ESADE organized several discussions with theSUNSHINEConsortium,takingadvantageoftheabove-mentionedtechnicalmeetings.Specifically,twoopendiscussionswereorganized,oneinAthensandtheotheroneinTrento.Theyfocusedonthe futureof SUNSHINE after theproject ends. Thediscussionwas structured according to thefollowingquestions:

- WhatistheinterestofSUNSHINEpartnerstokeeptheprojectalive?- Canalltheseinterestsbebroughttogetherinaspecificcommonpost-SUNSHINEgoal?- Whatactivitiescansupportthisgoal?

o Technologicalproductso Consultancyo Researcho Trainingo Knowledgeplatformo Others?

- Whatisthepost-SUNSHINEtarget?- Whatisthepost-SUNSHINEcompetition?- Whatisthespecificvaluepost-SUNSHINEisgoingtooffer?- Whatshouldthepost-SUNSHINEbusinessmodelbe?- Howshouldweorganizeourselves(ideasofjoiningalegalentityoranyothertypes

oforganizingourselves)?- Whataretheovercomingbarrierstoreachasuccessfulpost-SUNSHINEscenario?

Partners’individualanswersregardingthegeneralexploitationofSUNSHINEresultsareprovidedintheAnnex.

WhatremainsfromthisreportistheresultofthecombinationofactivitiesperformedbyESADEtogetherwithSUNSHINEpartners.Thisremainderofthisreportisstructuredasfollows.First,theresultsofthemarketassessmentarepresented(section2)includingthedescriptionofthetargetaudience, the stakeholders, the market size and evolution, and SUNSHINE value proposition.Next,asummaryandanalysisofindividualbusinessplansandstrategies(section3)canbefoundfollowed by the results of the general exploitation (section 4) in which the ConsortiumExploitationplanispresented.ThissectionincludesaSWOTanalysis,thedescriptionofSUNSHINEcompetitiveadvantage,theshortandlongtermexploitation(roadmap)andtheidentificationofovercoming barriers to successful exploitation. Finally, conclusions are drawn (section 5). Thereport also includes a references section (section 6) and an annex (section 7) that includesindividualcanvases,businessplansandthesummaryofthegeneraldiscussionaboutexploitation.


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2 MarketassessmentThis section examines the market of energy efficiency in Europe to assess in which contextSUNSHINE exploitation might take place. The goal of this section is to determine theattractiveness of the energy efficiency market and particularly to assess the potential ofSUNSHINE tools. This market assessment is a previous step to determine the strengths andweaknesses towards exploitation and to identify the competitive advantage of SUNSHINEsolutionsneededtodefineabusinessstrategy.

Inordertodoso,wehavedifferentiatedbetweenSUNSHINE’smarketandthegovernanceoftheenergymarket. As a result, we have distinguished between SUNSHINE’s target audience (withspecific needs that SUNSHINE might address) and stakeholders that play a key role in thegovernanceoftheenergymarketand,therefore,thatmightinfluenceofmightbeinfluencedbythedynamicsofsuchmarket.Thesectionstartswiththeidentificationofthetargetaudiencetowhich SUNSHINEaddresses its solutions.Next, the governance framework is describedand themainactorsarehighlighted.Third,weassesstheenergymarketsizeanditsevolution.Finally,inordertoclosethissection,wedescribethevaluepropositionofSUNSHINEsolutions,takingintoaccountthetargetneeds.

2.1 Targetaudience

Inthissection,wefocusonthoseplayerswhoseneedscanbemetbySUNSHINEsolutions,thatis,SUNSHINE’s targets or “clients”. The main goal of SUNSHINE is to provide Information andCommunication Technology (ICT) tools to improve efficiency and optimization of energyperformance. In particular, SUNSHINE provides solutions to multiple audiences with differentneeds. Among them, we have identified the following targets: public administrations, energyproviders,energyservicecompanies(ESCOs),maintenancecompaniesandbuildingmanagers,theenergyauditindustry,andfinally,citizens.

• Publicadministrations

Publicadministrationsareprobablyoneofthemostimportanttargetgroupsofthisprojectsincethepublicsectorisinchargeofdefiningpoliciesandofspendinginthemostefficientway.Inthisrespect,publicadministrationscanbeconsideredaprimary target forSUNSHINE.When talkingaboutpublicadministration,severallevelshavetobeconsidered:nationalandlocal.Before describing the specific goals of the public sector regarding energy efficiency, it isworthmentioning that there is a common need which is described in the Energy


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EfficiencyDirective2012/27/EU1 (EED): the general need of limiting climate change andovercoming the financial crisis. In this context, energy efficiency appears as a usefulmean toaddress this challenge. The EU Commission’s main role is to define a common policy and toestablishguidelinestoensurethatEUmembersmeettherequirementsincludedintheEED.Thegoalsandneeds forpublicadministrations,belonging todifferentadministrative levels,aredescribedbelow:AtthenationallevelThenationallevelreferstoallEUmembersthat,ononehand,havetomeetthegoalsset-upbytheEUCommissionregardingenergyefficiencyand,ontheother,toeachspecificpolicyrelatedtoenergyefficiencythathavetobeperformedatthecountrylevel.TomeettheEUtargets,member-statesdeployNationalEnergyEfficiencyActionPlans(NEEAP)inalliance with their own national regulations in which specific goals are established leading tospecificprogramsandplanswithimpactattheregionaland/orlocallevel.Regarding national policies, according to the International Energy Agency (IEA 2010, EnergyEfficiency Handbook2) there are 4 drivers of government energy efficiency policies: energysecurity,economicdevelopmentandcompetitiveness,climatechangeandpublichealth3:

- Relatedtoenergysecurity:toreduceimportedenergy,toreducedomesticdemandtomaximiseexports,toincreasereliability,tocontrolenergydemandgrowth.

- Relatedtoeconomicdevelopmentandcompetitiveness:toreduceenergyintensity,to improve industrial competitiveness, to reduceproduction costs, to achievemoreaffordable energy customer costs, to define energy-savingpolicies basedonenergyperformanceestimation.

- Relatedtoclimatechange:tocontributetoglobalmitigationandadaptionefforts,tomeet international obligations and supra-national accession directives (the EEDrequirementsintermsofenergypoliciesandefficiency).

- Relatedtopublichealth:toreduceindoorandlocalpollution.

1https://ec.europa.eu/energy/en/topics/energy-efficiency/energy-efficiency-directive2http://www.iea.org/publications/freepublications/publication/gov_handbook.pdf3Adaptedfromtheabove-mentionedreport.


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AtthelocallevelThe local level ismaybetheonewhereneedsandrelatedactionsaremorespecific in termsofimplementation since cities are becoming increasingly active in designing and implementingenergy efficiency policies designed to meet local objectives. The first goal is to meet therequirementsfromotherlevels:boththesupranational(European)andthenationalframeworks.Inaddition,municipalitiesalsohavetodeploytheirownspecificstrategies.Atthelocal level,theCovenantofMayorsisanimportantmechanismtotakeintoaccount.TheCovenantofMayorsisacooperationmovementinvolvinglocalandregionalauthoritieslaunchedbytheEUCommissionin2008“toendorseandsupporttheeffortsdeployedbylocalauthoritiesintheimplementationofsustainableenergypolicies.”4AnewintegratedCovenantwaslaunchedinOctober2015,settingnewgoalsthathavetodowith“acceleratingthedecarbonisationoftheirterritories, strengthening their capacity to adapt to unavoidable climate change impact, andallowing their citizens to access secure, sustainable and affordable energy”5. The Covenantestablishes that each signatory has to develop a Sustainable Energy Action Plan (SEAP) and aMonitoringActionPlan(MAP).In this context,municipalities need tools to be able tomeasure their energy consumption andperformanceinordertoshowtheircommitmenttoreducingCO2emissions.ThesetoftoolsthatSUNSHINEoffers(interoperableplatform,opendatausetobuildenergymaps,sensorsanddailymeasurement andmonitoring, etc.) are very relevant in this context. In addition tomonitoringand having detailed information about energy performance, building refurbishment is also astrategic action that local governments might deploy. Finally, retrofitting of current tools isanotheralternativeforlocalgovernment,especiallywhensensorsarenotaffordableorwhen,forlightingsystemsforinstance,itistooexpensivetochangethewholesystem.Thesearethemaingoalsthatlocalgovernmentshavetoachieveintermsofenergyefficiency:

- TomeettheEUdirectiverequirementsintermsofenergypoliciesandefficiency.- To design and deploy policies: in some cases the signatories of the Covenant of

Mayors municipalities have to deploy their Sustainable Energy Action Plan (SEAP).Evenwhenthisisnotarequirement,theystillneedtodefineenergy-savingpolicies.ForbothSEAPandgeneralenergy savingpolicies, they requireenergyperformanceestimations.

- Tobemoreefficient(spendlessandbetter): improveenergymanagementofpublicbuildings,reduceenergybills,andimproveenergyperformance.

4http://www.covenantofmayors.eu/The-Covenant-of-Mayors-for-Climate.html5Ibid.


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- To deploy urban regeneration policies: improvement of city building stock energyconsumption/performance.

- To improve the quality of life of citizens: balance between isolation and comfort,safetyinpublicspace(lightingsystem).

Finally, it isalso important to take intoaccount thatcitiesarequitedifferent, size-wise.That iswhyneeds,aswellasthe importancegiventothem,mightbedifferent.Also, it is importanttotakeintoaccounttheregional(orsupra-municipal)levelsinceitprovidessupportstothesmallestmunicipalitiesthatdonothaveenoughresources.

• Energyproviders(utilities)Utilities are maybe the second most important target group for SUNSHINE. Thus, it is also aprimarytarget.Theyaretheenergyproviders thatcanoperateat thenational level followingastrong regulation inmonopoly conditions or in a deregulatedmarket and in competence withotherproviders.Theycanalsobepubliclyorprivatelyowneddependingonthecountry.Utilitieswereoriginallycreatedtosellenergyandtheirmainwillwastoincreasetheirbusiness.However,duringthe70sandthefirstworldwideenergycrisis,theyhadtochangetheirorientationandtheconcept of efficiency was introduced. Later, heightened of awareness of climate change andinternational requirements to reduce energy consumption forced utilities to sell greener andmoreefficientproducts.Inthiscontext,thegoalsofenergyprovidersare:

- Tomeettheneedsoftheirconsumers(households,industry,publicsector)bysellinggreenorlowcarbonfootprintenergy.

- Tofindthebalancebetweenbeenefficiencyandnotlosingprofit.- To be competitive in an environment where there is a general demand for bill

reduction.

• EnergyServiceCompanies(ESCOs)

Energy service companies started to become key at the same time that utilities realized thatefficiency mattered. ESCOs are different to utilities. They are companies that offer energyservices,butarenotdirectlyconnectedtoautility(althoughutilitiescancreateESCOs).Ononehand,ESCOs inderegulatedmarkets(marketsthatallowenergycompetition)cansupplyenergytocustomersthattheycreateorbuyfromothers.Ontheother,ESCOsinstallorredesignbuilding


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andindustrialsystemstoreduceenergyuseandfinancetheirfeesoutoftheenergycostsavings6.Taking this into account, ESCOs are interested in tools that can improve their services and thefollowingaretheirmaingoals:

- Toprovideenergysolutioninanefficientwaytotheircustomers.- Todesignorprovidesolutionsforexistingbuildingsandindustrialsystemstoreduce

energy.- Tocreatemoresophisticatedbillingmechanismbasedonrealtimeconsumption.- To implement energy saving projects based on energy performance and energy

behaviouranalysis.

• MaintenancecompaniesandbuildingmanagersMaintenancecompaniesandbuildingmanagersareaprimary targetgroup forSUNSHINE.Theyarehighlyinterestedinhavinginformationabouttheenergyperformanceofabuildinginordertobeabletoadapttheirenergystrategy.Forinstance,inthecaseofacoolingandheatingsystem,theaccesstoupdatedinformationaboutconsumptionenablesthemanagertoidentifypatternsand,asaresult,toadaptthecomforttemperaturetogetherwiththescheduleofturningonandoff the system. That means that maintenance companies might decide to change a buildingenergypolicy(temperature,schedules)orconsiderasystemrenovationiftheyidentifyinefficientactivities. Maintenancecompaniesmanagebuildingsandtheirmaingoal is tomanage them inthemostefficientway. In thiscase, themoreefficient theyare themoresatisfiedtheirclients(i.e.largecompanies,municipalitieswithlargeassetofbuildings)willbe.Therefore,thefollowingarethegoalsofmaintenancecompaniesandbuildingmanagers:

- To assure high-energy performance of a building (heating and cooling, lightingsystems)bymeasuringtheenergyperformance.

- Tomonitor the performance of the building and identify patterns for energy policyimprovements.

- To identify inefficient activities or losses that might be considered for systemrenovation.

- Toavoidenergyuselessspendingbyusingefficientmaintenanceofthebuilding.6AndyFrank,Greenbizhttp://www.greenbiz.com/news/2008/04/13/escos-and-utilities-shaping-future-energy-efficiency-business


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• EnergyauditindustryIn the EU European Energy Directive Guidebook7, energy audits are defined as systematicprocedures “used to identify, quantify and report existing energy consumption profiles andenergysavingsopportunitiesinbuildings,industrialorcommercialoperationsorinstallations,andin private or public services”8. An energy audit is an important part of an energymanagementsystem (defined as a set of elements of plans establishing energy efficiency objectives andstrategies to achieve these objectives). The EED also sets up several requirements for largeenterprises, SMEs and households. For instance, according to the European Energy DirectiveGuidebook, large enterprises’ management systems must ensure that they carry out energyaudits of their buildings and installations at regular intervals (no more than four years, sinceDecember,5th,2015).Theresultsofanenergyauditandtherecommendationsprovidedmustbetakenintoaccounttoimprovetheenergymanagementschemes.In this context, energy audit companies’ main task is to measure the energy performance ofbuildings to provide recommendations related to energymanagement andother systems.As aconsequence,theyhavethefollowinggoals:

- Toanalysetheamountofheat(heatingandcooling)abuildingaccumulates.- Toaccessandcollectdata(geo-data,suchasthecadastre)andtocalculatelifecyclecost

analysis.The two above-mentioned goals allow the energy audit industry to determine poor energyefficiencyandtoidentifyopportunitiestoreduceenergyexpenseandcarbonfootprintsthroughtheprovisionofrecommendations.

• CitizensCitizensalsoappearintheenvironmentofSunshineasasecondaryplayer.Asfornow,SUNSHINEpilotshavebeenperformedinapublicsectorenvironmentbutitswillisalsototackletheneedsandchallengesofenergyefficiencyintheprivatesectorand,inparticular,regardingtheindividualconsumptionofhouseholds.Hence,energyefficiencyisalsoamatterofindividualsandthewaycitizens and particularly households behave. SUNSHINE might, in the future, be used byhouseholdsand this iswhy theapproach in this report is tounderstandcitizensasa secondarytargetaudience.

72013.Moreinformationhere:http://eedguidebook.energycoalition.eu/energy-audits.html#provisions8Ibid.p.57


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Theincreasedawarenessrelatedtoenergyconsumptionandthedemandofbeingmoreefficient,usinggreenerenergy, is a generalizedaspectacrossEurope.Therefore, citizens’needs towardsenergyefficiencyarethefollowing:

- Toreduceenergyconsumptionand,therefore,topaylessfortheenergytheyconsume.- Toreducecarbonfootprintwhilecomfortandqualityoflifeismaintained.

In sum, the analysis and target audience description show that each of the actors identifiedpresentdifferentgoals regardingenergyefficiency.However, thesegoalscanbetranslated intocommon needs and SUNSHINE has the potential to satisfy them. In this respect, our analysisconcludesthatinformation,control,planning,saving,transparency,knowledge,andgenerationofnew business opportunities are theways inwhich SUNSHINE canmeet the needs of its targetgroups. To make it simple, SUNSHINE can become an important tool to collect and organizeinformation, to support the decision-making process and to improve, by means of thetechnological tools SUNSHINEoffers, energyefficiency in a given context. Therefore, SUNSHINEcan contribute tomeet theneedsof theenergymarketaswell as can to support thedifferentaudiencesinthismarkettoreachtheirgoals.Oneofthequestionsthatarisefromthisanalysisisthelevelofcomplexitythatamulti-objectiveandmulti-targetedproject, suchasSUNSHINE,has. This canbeunderstoodasa threat for theexploitationbutalsoasastrength.

2.2 Stakeholders

Themarket isalsodrivenbyseveralgovernance rules thatarise fromthe interactionofplayersthat can influence the decision making processes in the energy efficiency field or can beinfluencedby them. Governanceof energy efficiency is also an aspect to take into account tounderstandthecurrentcontextofthemarketbutalsoitsevolution.According to the Energy Efficiency Governance Handbook (IEA, 2010), “energy efficiencygovernance is the combinationof legislative frameworks and fundingmechanisms, institutionalarrangements, and co-ordinationmechanisms,whichwork together to support implementationofenergyefficiencystrategies,policiesandprograms”9.

9http://www.iea.org/publications/freepublications/publication/gov_handbook.pdf


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In this sectionwe identify several groupsof players that are important and that can affect themarket or be affected by it: EU institutions, energy regulatory agencies, the research &developmentandinnovationcommunityandotherinternationalentities.

• EUInstitutionsandimpactonnationalandlocalpoliciesThegovernanceoftheenergyefficiencyfieldiscomplex.OneofthemainactorsinthisfieldistheEuropeanUnion.ThepublicsectorasatargetgroupforSUNSHINEhasalreadybeenaddressedintheprevioussection.However,itisimportanttohighlighttheroleoftheEUinthegovernanceofenergy efficiency in Europe. In particular, it is important to look at how the EU requirementsimpactnationalandlocalpolicies.Ononehand,theEuropeanCommissionplaysakeyroleinestablishingtheframeworkinwhicheach EU member has to perform at the national and local level. Directives (Energy Efficiencydirective 2012/27/EU, the Energy Performance of Buildings Directive 2001/91/EC or INSPIRE2007/2/EC),withmandatorygoalsfor2020,appearaskeydriversthatforceEUmember-statestodeploypoliciesandplansinthisregard.In this context, the Directorate-General for Energy appears as the main actor within the EUinstitutions. This DG is responsible for developing and implementing a European energy policyandimplementsinnovativepoliciesaimedat10:

- Contributing to setting up an energy market providing citizens and business withaffordableenergy,competitivepricesandtechnologicallyadvancedenergyservices.

- Promotingsustainableenergyproduction,transportandconsumptioninlinewiththeEU2020targetsandwithaviewtothe2050decarbonisationobjective.

- Enhancing the conditions for safe and secure energy supply in a spirit of solidaritybetweenEUcountriesensuringahighdegreeofprotectionforEuropeancitizens.

• EnergyregulatoryagenciesEnergyregulatoryagenciesareanimportantstakeholdersincetheycontributetothedefinitionofthesettingsof theenergymarket.Theydefine the frameworkand the rulesof thismarketandguaranteeitscompetitivenessandintegration.AttheEuropeanleveltherearetwomainbodies:the Council of European Energy Regulators and the Agency for the Cooperation of EnergyRegulators.

10https://ec.europa.eu/energy/en/about-us


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TheCouncilofEuropeanEnergyRegulators(CEER11)wasestablishedin2000forthecooperationoftheindependentenergyregulatorsofEurope.TheCouncilisthevoiceofnationalregulatorsofelectricity and gas at the European and the international levels and its goal is to facilitate thecreationofasingle,competitive,efficientandsustainableEUinternalenergymarketthatworksinthepublic interest. CEERcurrentlyhas30members:thenationalenergyregulatorsfromthe28EU-memberstatesplusIcelandandNorway. TheAgency for the Cooperation of Energy Regulators (ACER12) is a community bodywith legalpersonalitythatplaysakeyrole inthe integrationof theEU’smarkets inelectricityandnaturalgas, providing a framework at the EU level for national regulators to cooperate and providingclarityandregulatorycertainty.

ItisalsoworthmentioningtheInternationalEnergyAgency(IEA),madeof29countriesfromtheOECD that is in charge of pursuing a number of strategies to improve energy efficiency bothamong itsmember governments andwith partner countries13. The IEA also plays an importantroleprovidingguidelinesandbestpracticesforothercountries.

Atthenationallevel,eachcountryhasaregulatorybody,astable1shows:Table1:EnergyEfficiencyRegulatorybodiesacrossEuropeREGULATORYBODIES

ORGANISATION URL CITY COUNTRY

CommissiondeRégulationdel'ElectricitéetduGaz(CREG)

http://www.creg.be Brussels Belgium

EuropeanRegulators'Groupforelectricityandgas(ERGEG)

http://www.ergeg.org Brussels Belgium

StateEnergy&WaterregulatoryCommission

http://www.dker.bg Sofia Bulgaria

CyprusEnergyRegulatoryAuthority

http://www.cera.org.cy Nicosia Cyprus

11http://www.ceer.eu/portal/page/portal/EER_HOME12http://www.acer.europa.eu/Pages/ACER.aspx13https://www.iea.org/publications/freepublications/publication/MediumTermEnergyefficiencyMarketReport2015.pdf


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EnergyRegulatoryOffice(ERO) http://www.eru.cz Jihlava CzechRepublic

DanishEnergyRegulatoryAuthority

http://www.dera.dk Copenhagen Denmark

EstonianEnergyMarketInspectorate

http://www.eti.gov.ee Tallinn Estonia

EnergyMarketAuthority http://www.energiamarkkinavirasto.fi Helsinki Finland

Commissionderégulationdel’énergie(CRE)

http://www.cre.fr Paris France

RegulatoryAuthorityforEnergy(RAE)

http://www.rae.gr Athens Greece

MagyarEnergiaHivatal http://www.eh.gov.hu Budapest Hungary

CommissionforEnergyRegulation(CER)

http://www.cer.ie Dublin Ireland

ItalianRegulatoryAuthorityforElectricityandGas

http://www.autorita.energia.it Milan Italy

PublicUtilitiesCommission(PUC) http://www.sprk.gov.lv Riga Latvia

InstitutLuxembourgeoisdeRégulation(ILR)

http://www.ilr.etat.lu Luxembourg Luxembourg

MaltaResourcesAuthority http://www.mra.org.mt Marsa Malta

NorwegianPetroleumDirectorate http://www.npd.no Stavanger Norway

RomanianEnergyRegulatoryAuthority-ANRE

http://www.anre.ro Bucharest Romania

RegulatoryOfficeforNetworkIndustries

http://www.urso.gov.sk Bratislava Slovakia

EnergyAgencyoftheRepublicofSlovenia

http://www.agen-rs.si Maribor Slovenija

ComisiónNacionaldeEnergía(CNE)

http://www.cne.es Madrid Spain


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Ofgem http://www.ofgem.gov.uk London UnitedKingdom

Source:https://www.energy.eu/andhttps://www.energy.eu/directory/regulatory.html

• Research&DevelopmentandInnovationCommunity

The energy efficiency research community includes the academia and research institutes fromdifferentdomainssuchasurbanplanning,geography,ICT,orpublicmanagement. Theresearchcommunityisalsokeysinceitanalysesthetrendsandpracticesinthefieldofenergyefficiencyinordertoproviderecommendations,bestpractices,andsuccessstoriesbutalsotoidentifyneedsforfurthertechnologicaldevelopments. Therearemanyactors involvedinthiscategoryamongEUcountriesbuttherearealsoimportantinstitutionsthathaveaEuropeanscope,suchastheJRCScience-HubandtheEuropeanInstituteInnovationandTechnology.The JRCScience-Hub isoneof themoresignificant researchgroups inEurope.The Institute forEnergyandTransport14 (JRC-IET)canbefoundthere.The latterprovidesscientificandtechnicalsupportonenergy-relatedissuestopolicymakersoftheEuropeanUnion.The European Institute Innovation and Technology is also a relevant actor in the research andinnovationcommunity.TheEITisanindependentbodyoftheEuropeanUnionsetupin2008tospurinnovationandentrepreneurshipacrossEuropetoovercomesomeofitsgreatestchallenges.The KIC InnoEnergy15 is one of their programs and is one of the most relevant in the energyefficiencyfieldinEurope.Inparticular,theClimateKIC16isalsoonereferenceasoneofthelargestpublic-privateinnovationpartnershipcommunitiesfocusingonclimatechange.ClimateKICisoneofthreeKnowledgeandInnovationCommunities(KICs)createdin2010bytheEuropeanInstituteof Innovation and Technology (EIT). The Climate KIC fosters innovation, education, andentrepreneurship to address societal challenges of climate change. This partnership includesSMEs,start-ups,largecompanies,theresearchcommunity,andcitiesandregions.

• OtherinternationalorganizationsThere are other international players that have an important role in the governance of energyefficiency in Europe. International organizations such as working groups, think tanks or non-governmentalbodiescanalsoberelevantinthecontextoftheenergyefficiencyinEurope.They

14https://ec.europa.eu/jrc/en/about/institutes-and-directorates/jrc-iet15http://eit.europa.eu/eit-community/kic-innoenergy16http://www.climate-kic.org/


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can work as lobbies with a strong interest in influencing policies and rules, but also providerecommendations(basedontheanalysisofthesituation)thatcanbetakenintoaccountfromthegovernanceperspectiveandalsoinfluencethedynamicsofthemarket.ThisisthecaseoftheEnergyEfficiencyFinancialInstitutionsGroup(EEFIG)thatwasestablishedas a specialist expert working group by the European Commission and the United NationsEnvironmentProgrammeFinanceInitiative(UNEPFI).Itwascreatedinlate2013asaresultofthedialogue between the Directorate-General for Energy (DG Energy) and UNEP FI, as bothinstitutions were engaging with financial institutions to determine how to overcome the well-documentedchallengesinherenttoobtaininglong-termfundingforenergyefficiency.EEFIGwastheresultof joining forcestoengagewiththesector’sstakeholdersandfinancial institutionstocreateanopendialogueandworkplatformwiththeEuropeanCommission17.TheEuropeanCouncilforanEnergyEfficientEconomy(ECEEE)18isonerelevantassociationthatoperatesat theEuropean level and theoldestand largestNGOonenergyefficiency inEurope.The role of this body is to generate evidence-based knowledge and analysis of policies in thisdomain. According to the organization website, “ECEEE promotes the understanding andapplicationof energy efficiency in society and assists its target groups – frompolicymakers toprogrammedesignerstopractitioners–withmakingenergyefficiencyhappen”19.

2.3 Marketsizeandevolution

Inthissection,thesizeofthemarketisassessedtakingintoaccounttheabovementionedtargetaudience.Thenitsevolutionisalsoanalysedinordertobetterunderstandhowenergyefficiencysolutions have evolved in the European context. This let us assess its stability as well as itspotentialfuturetrends.IthasnotbeenpossibletofinddirectandquantitativeestimatesofhowbigSUNSHINE’smarketis. For this reasonour approach to the topic ismostly qualitative although it clearly shows theneedtobecomemoreefficientwhenitcomestoenergy.

17https://ec.europa.eu/energy/sites/ener/files/documents/EXEC%20SUMM%20Final%20Report%20EEFIG%20v%209.1%2024022015%20clean%20FINAL%20sent.pdf18http://www.eceee.org/about-eceee19Ibid.


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• MarketsizeSUNSHINEwasborninacontextwherewhatiscalled“smart”constantlygrows.AccordingtotheWorldBankEnergySectorManagementAssistanceProgram(ESMAP),“…by2030,almost5billion(about60percentoftheglobalpopulation)willliveincities,leadingtomassiverequirementsforenergy to power growth and expand basic infrastructure. Energy efficiency can offer practicalsolutions to budget-constrained cities to meet their energy needs without sacrificing theirdevelopmentpriorities”20.This statementshowshow importantenergyefficiencysolutionscanbeandthatenergyefficiencyisamatterthataffectsallkindofcities,eventhesmallest.Inaddition,accordingtotheEuropeanAssociationofLocalAuthoritiesinEnergyTransition,“themoneyspentonenergyyearlycanreach250millioneurosinacitywith250,000inhabitants,theannualenergybillforsupplyingheating,domestichotwaterandelectricitytohouseholds,tertiaryactivitiesandSMEamountstoroughly250millioneuros”21.Therefore,thereisastrongeconomicdriverforspendingless.

Geographically, the market will initially comprise the 28 EU member states. Given that EUrequirements in terms of energy efficiency are compulsory, all 28 member states should bedeploying specific policies and action plans tomeet European requirements. They are therebycreatinggrowingmarkets,whosesizeswilldifferbycountry.

In fact, the assessmentmade in July 2014by the EU states that the EU is expected to achieveenergysavingsof18%-19%by2020–missingthe20%targetby1%-2%.During theSUNSHINEproject, aneffortwasmade to identifybestpracticesofon-goingenergysaving policies across Europe in order to analyse the trends of policy deployment but also theextentofenergypolicydeploymentinEurope.ThefindingsfromtheresearchcarriedoutinWP3(seereportT3.3 inWP3formore information)have identifiedmorethan100actionsrelatedtoenergysavingspoliciesamongcountriesrepresentedwithintheConsortium.Theseresultsshowthatenergyefficiencypolicydeploymentissignificantandmostofthemweredeployedinthelast5years.At the local level, theCovenantofMayors isone importantdriver.Today, therearemore than6.650signatorieswhosegoalis“toreduceCO2emissionsbyatleast40%by2030andtoadoptan

20http://www.esmap.org/Energy_Efficient_Cities21http://www.energy-cities.eu/IMG/pdf/cahier_short_jan2014_en.pdf


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integratedapproachtotacklingmitigationandadaptationtoclimatechange”22.AnotherimportantmechanismatthelocallevelistheEnergyPerformanceofBuildingsDirective(EPBD) that puts in place the creation of an energy performance certificate (EPC). It is almostimpossibletoassesstheamountofexistingenergyperformancecertificationinEuropesinceanEPChastobedeliveredin “alladvertisementsincommercialmediawhenabuildingisputupforsaleorrent.Theymustalsobeshowntoprospectivetenantsorbuyerswhenabuildingisbeingconstructed, sold, or rented”23. According to the Buildings Performance Institute Europe (BPIE,2011),“itisestimatedthatthereare25billionm2ofusefulfloorspaceintheEU27,SwitzerlandandNorway”24.Anotherkeygroupinthismarketaretheenergyproviders(utilities).InthecontextofEurope,weinclude natural gas and electricity providers since they are themain source of energy. Hence,accordingtotheECreportaboutenergypricesandmarketinEurope25,thosetwokindsofenergyprovidersoperateinachangingcontextwhereefficiencyisbecomingmoreandmoreimportant.“Electricity generation is being decarbonised, with strong growth of wind and solar power inparticular.Atthesametime,alternativegassuppliesarebeingdevelopedanddiversifiedandthetransportsectorisbecomingmorefuelefficientandstartingtousecleaner,alternativefuels”(ECEnergy price andmarket report, 2014). The utilities market is segmented between public andprivateorganizationsdependingontheregulationofeachcountryleadingtodifferentregulationmodels26. According to MSCI EuropeUtilities Index, these are the ten most important utilitiescompaniesinEurope27:22New2030FrameworkandIntegrationofAdaptation:http://www.covenantofmayors.eu/The-Covenant-of-Mayors-for-Climate.html23https://ec.europa.eu/energy/en/topics/energy-efficiency/buildings/certificates-and-inspections24Europe’sbuildingsunderthemicroscopehttp://bpie.eu/wp-content/uploads/2015/10/HR_EU_B_under_microscope_study.pdf25Workingdocument,2014,https://ec.europa.eu/energy/sites/ener/files/documents/20140122_swd_prices.pdf26MoreinformationaboutdifferentmodelsarecompiledinthisreportbyEY“MappingpowerandutilitiesregulationinEurope”,http://www.ey.com/Publication/vwLUAssets/Mapping_power_and_utilities_regulation_in_Europe/$FILE/Mapping_power_and_utilities_regulation_in_Europe_DX0181.pdf27Top10constituents(31/12/2015)https://www.msci.com/resources/factsheets/index_fact_sheet/msci-europe-utilities-index-eur-net.pdf


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Table2.TenmostimportantutilitiesinEurope.

Source:MSCIEuropeUtilitiesIndex.2015

According to themarket report for 2015by the IEA,utilitiesofOECDcountries arediversifyingtowardsenergyefficiencyandotherenergyservicesbusinessestoincreaseearnings.Inparticular,thereportstatesthat“majorEuropeanutilitiesareachievingsalesfortheseproductandservicelinesinthebillionsofeuros,withrevenuesgrowingby3%to4%annually”28.

RegardingESCOs’marketinEurope,between2010and2013,themarkethasgrownandfurthermarketsectorshavebeenreachedbut,accordingtotheJRC-IETreport(2013)29,theESCOmarketin Europe is still far from mature. Indeed, according to the report, there are only very fewcountries that are considered mature markets in this respect: Germany, the Czech Republic,France,andAustria.

Table3describestheaveragenumberofESCOspercountries30:

28https://www.iea.org/publications/freepublications/publication/MediumTermEnergyefficiencyMarketReport2015.pdf29http://iet.jrc.ec.europa.eu/energyefficiency/sites/energyefficiency/files/jrc_89550_the_european_esco_market_report_2013_online.pdf30ForcountrydetailedinformationreferdirectlytotheJRCreportandeachcountrysectionwherecontextisdescribed.Valuesarerobustandrarelycomparablebecauseofthecontent–incaseofthenumberofESCOsdifferencesareduetothedefinitionofthesecompaniesinthegivencontext.


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Table3.ESCOsinEUCountries.

EUCountries NumberofESCOs EUCountries NumberofESCOs

Austria over50 Italy 50-100

Belgium 10-15 Latvia 8

Bulgaria 7-12 Lithuania 3-5

Croatia 10 Luxembourg 3-6

Cyprus 0 Malta 0

CzechRepublic 20 Netherlands 50

Denmark 15-20 Poland 30-50

Estonia 2 Portugal 100

Finland 5-8 Romania 15-20

France 350 Slovakia 6-8

Germany 500-550 Slovenia 5-6

Greece 5 Spain 20-60

Hungary 10 Sweden NA

Ireland 30 UnitedKingdom 30-50

Source:JointResearchCentreInstituteforEnergyandTransport.TheEuropeanESCOmarketreport2013.

IntermsofevolutionoftheESCOsmarket,areportbyNavigantResearchhighlightsthattheEUmarket is still far away from theUS ESCOmarket. However, the report forecasts that, despitebeingmodest, the Europeanmarket will grow from$2.7 billion in 2015to $3.1 billion in 2024according31.

Theenergyauditors industry isalsosignificantly important.For instance, in Italy,wheremostofSUNSHINE partners are from, energy auditors are a very important segment of the energy

31https://www.navigantresearch.com/research/energy-service-company-market-overview


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efficiency market. In this country alone there are around 70.000 energy auditors and theypartiallydependonlocalauthorities.

Finally, from the consumer perspective, that is industry and households users, it is difficult tocome up with an exact number. To determine the size of the market (private energyusers/consumerssuchastheindustry,commercialbuildingsandcitizens/households)wewillusetwoproxies:numberofhouseholdsinEurope(EU28)andthesizeofthebuildingstockinEurope(residentialandnon-residentialbuildings).

AccordingtoEurostat,theaveragenumberofhouseholds intheEU28in2014was220.382.877households. Regarding the size of the building stock in Europe (as potential main users ofSUNSHINEtools),Germany,theUK,Spain,FranceandItaly,alltogetheraddtoaround82.400.000buildings (residential and non-residential) according to the BPIE Data Hub for the energyperformanceofbuildings32.

Figure1.Distributionofbuildingstockbybuildingtype

Source:BPIEDataHub

32http://www.buildingsdata.eu/


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Therefore,themainconclusionthatcanbedrawnfromthequalitativeanalysisperformedsofaris that the European market is considerable and significant. Moreover, the energy efficiencymarketisagrowingmarketthathasevolvedinthelast10years.Nextsectionisdedicatedtothismarketevolution.

• Energyefficiencymarketevolution

Firstofall, theevolutionoftheenergyefficiencymarket inEuropehastobeunderstoodtakingintoaccounttheevolutionoftheEU legal frameworkwhichstartedtostressthe importanceofefficiency inbuildings in2002withtheEnergyPerformanceofBuildingsDirectiveandthenwiththe 2012 EE Directive. According to the European Commission33, these are the main resultsobtained so far together with those expected to be reached showing that the market isdeveloping.

- Newbuildingsconsumehalftheenergytheydidinthe1980s.- EnergyintensityintheEUindustrydecreasedbyalmost19%between2001and2011.- Moreefficientappliancesareexpectedtosaveconsumers€100billionannually–about

€465perhousehold–ontheirenergybillsby2020.- EUcountrieshavecommittedthemselvestorollingoutcloseto200millionsmartmeters

forelectricityand45millionforgasby2020,leadingtogreatersavingsforconsumers.- Theshareofrefrigeratorsmeetingthehighestenergyefficiencylabellingclasses(Aand

above)increasedfromlessthan5%in1995tomorethan90%in2010.

Infact,thedevelopmentofstrongpoliciesinthisrespectwillcontinuetodriveenergyefficiencyinvestment.

Moreover,theInternationalEfficiencyAgencyperformssince2013theEnergyEfficiencyMarketReport(EEMR)showingtheevolutionofthismarket.InEEMR2013,theenergyefficiencymarketwasunderstoodasanimportantmarketthatwasgainingmomentum34anddataanalysedshowedthat,since2011,thetotalinvestmentinenergyefficiencywassimilarinmagnitudetosupply-sideinvestmentinrenewableorfossilfuelelectricitygeneration.InEEMR2014,ESCOswereperceivedas an important player in the market context providing new business models and fundingapproaches in which ESCOs appeared as growing funding instruments35. Onemain conclusionfromthe2014reportwasthat“energyefficiencyfinancinghasmovedfrombeinganichetoan

33https://ec.europa.eu/energy/en/topics/energy-efficiency34https://www.iea.org/publications/freepublications/publication/EEMR2013_free.pdf35Ibid.


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establishedfinancialmarketsegment”.Therefore,wecanconcludethat,since2014,theenergyefficiencymarketisconsolidatedbutstilldeveloping.

TheEnergyEfficiencyMarketReport2015 (EEMR,2015) shows that, in2014, theglobalenergyefficiency investment in buildings was estimated to have been USD 90 billion (+/- 10%). Inaddition, the projection by 2020 of the global energy efficiency investment is projected toincreaseover125billionUSDduetotheexpansionoftheefficiency-targetedpolicies.Thereportstates that“asenergyefficiencycodes, standardsandprogramsare improvedandmorewidelyimplemented, per-building efficiency investment is projected to increase across most nationalbuildingmarketsintheOECD”36.

TheEEMR2015pays attention to themarket evolution for almost the last 30 years and statesthat the evolution of avoided consumption from energy efficiency (which has been about 870MtCO2 avoided in 2014, and 10.2 GtCO2 over the period since 1990 for IEA countries) hasdeliveredconsiderablefinancialreturns:“theavoidedexpenditureinIEAcountriesresultingfromenergyefficiency investmentsover the last25yearscanbevaluedatUSD5.7 trillion toenergyconsumers,morethantheGDPin2014ofJapanorGermany.In2014alone,theseavoidedenergyexpenditurestotalledoverUSD550billion”37.

Regarding the energy efficiency for buildings market, the EEMR 2015 describes that theinvestmentinenergyefficiencyinbuildingsisgrowinggloballymorerapidlythanoverallgrowthof building construction. In particular, for IEA countries, global energy efficiency investment inbuildingsisprojectedtoincreasetooverUSD125billion(excludingappliances)by202038.

Therefore,we can conclude that energy efficiency is a growingmarket but not amarket nicheanymore.Itisconsideredasanestablishedfinancialmarketsegmentduetothefactthatenergyefficiency isa requirement in theEUcontextbutalsoaworldwidegoal trend.Citieshavetobemoreefficient,followingtheperspectiveof“spendinglessanddobetter”atthesametimethattheyhavetoensurecitizenswellbeing.

Finally,intermsofthefutureevolutionofthemarketforthenext15years,theworkperformedbytheEEFIG(EnergyEfficiencyFinancialInstitutionsGroup)canbetakenintoaccount.TheEEFIG

36https://www.iea.org/publications/freepublications/publication/MediumTermEnergyefficiencyMarketReport2015.pdf37https://www.iea.org/publications/freepublications/publication/MediumTermEnergyefficiencyMarketReport2015.pdf38EEMR2015report,p.67.


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haswidelyanalysedtheenergyefficiencymarketandhascompiled39asetofrecommendationsthatcanbeanalysedintermsofpotentialfuturetrendsoftheenergyefficiencymarketinEurope.TheserecommendationsaimatimprovingthecompetitivenessoftheEUeconomyandtoensureanimpactontheEU2030climateandenergystrategy.

- ImprovementofbuildingscertificationmethodologiesandEnergyPerformanceCertificatestandards and the implementation of minimum performance standards upon buildingupgrade,saleorrentaltohelpbuildavibrantandcomparablepan-Europeanmarketforbuildingsenergyefficiencyinvestments.

- Improvement of information flows by developing an open-source energy and costdatabase for buildings and effective systems for sharing information and technicalexperiencewithinindustrysectors.

- Facilitate innovation such as on-bill repayment and on-tax finance mechanisms bycreatingpilotstohelpgrowenergyefficiency investments incommercialandresidentialbuildings.

- Developaprojectratingsystemtoprovideatransparentassessmentofthetechnicalandfinancialrisksofbuildingsenergyrenovationprojectsandtheircontractingstructure.

2.4 SUNSHINE’svalueproposition(bytarget)

This section pays attention towhat SUNSHINE is offering to address the needs of each of thetarget groups previously described. Here, Value Proposition (VP) is understood as a set ofproductsandservicesthatsolvetheneeds(negativeinfluences,risks)thatagroupofconsumershas.Italsoreferstohowbenefitsandoutcomesforthiscustomerarecreated40.Despite the different objectives of different targets, needs are quite similar when it comes tofulfillingthoseobjectives:information,data,decision-makingtools,andtechnologicalsolutions.In this context, as stated in the website project, SUNSHINE delivers an extensive open toolkitfeaturing three smart services for: 1) energy assessment of buildings at urban scale for thecreation of “Energy Maps” and their energy pre-certification, 2) optimisation of energyconsumption of heating/cooling systems based on localised weather forecasts and energy39 From“ExecutiveSummaryofFinalReportcoveringBuildings,IndustryandSMEsFebruary2015.EEFIGhttps://ec.europa.eu/energy/sites/ener/files/documents/EXEC%20SUMM%20Final%20Report%20EEFIG%20v%209.1%2024022015%20clean%20FINAL%20sent.pdf

40 AdaptedfromAlexanderOsterwalder.BusinessModelGeneration(2010).


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modellingofbuildings,3)optimisationofpowerconsumption through remotecontrolofpublicillumination levels. More information about each of the scenarios can be found in WP1 anddeliverableD1.1“SUNSHINEUseCases”.

• SUNSHINEforthelocalpublicadministrationThe public sector’s main need is to have at its disposal information regarding the energyperformanceofaregionorcity.Inthiscontext,SUNSHINEservicesandsolutionsareparticularlyuseful since they allow the public sector to have direct and updated information about theperformanceofabuildingstockoralightingsystem.Thisisparticularlyneededwhendesigningor improving energy efficiency policies at the local level. Thanks to SUNSHINE, local publicadministrations are able to design targeted policies and take well-documented decisionsregardingurbanregeneration,energyconsumption,andclimatechange.Moreover, theanalysisoftheenergyperformanceallowsthepublicsectortodefineitsstrategytoreachenergysavingsbut also to assess to what extent the requirements from the EU and other internationalorganizationsaremet.From a more specific point of view, EnergyMaps (scenario 1) appear as a very accurate tool(basedonopendata)thatprovidesthe informationabouttheenergystatusofabuildingstock.Withthis information,a localgovernmentcandecidewhetherornottorenovateorretrofittingthe facilities and to define energy pre-certification mechanisms. Also, scenario 2 services andproducts provide access on real-time energy consumption information that allows the publicsectortocreateamoresophisticatedbillingandnotificationsystems.Finally,scenario3providesrealtimeinformationaboutenergyperformancethatallowsthepublicsectortochangepatternsand optimize the existing technology or to retrofit or change it. At the same time, with thisinformation,energysavingstrategiescanbedrawn.

• SUNSHINEforenergyprovidersAspreviouslydescribed,utilitieshadtochangetheirproductorientationinacontextofgrowingdemandforefficiencyandbillreduction.Fromanorganizationalpointofview,SUNSHINEproductsalsoallowenergyproviderstocollectinformation about their customers’ consumptions and, as a result, to havemore accurate anddetaileddataoftheirbehaviour.Thisinformationcanbeusedtoimprovethebillingsystem.Forexample, inSpain,when it comes toelectricity consumption,utilitiesaskusers toprovide theirindividualmeter reading every twomonths. Using SUNSHINE’s technology could improve this


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way of reporting, automating it andmaking itmore reliable since itwould not depend on theusers’abilitiestocollecttheinformation.In the growing context of demand for further efficiency and carbon footprint reduction,SUNSHINEoffersasetoftoolsthatareefficiencyorientedbutalsoperformanceoriented.Inthisrespect, SUNSHINE canoffer theutilities a combinationof services and tools that canhelp thecustomer(industry,households,andcompanies)tohavedirectfeedbackofitsconsumption.Moreover,fromamultiplebenefitapproach(IEAreport41),thereisalsoasetofotherbenefitsforenergy providers that result from using SUNSHINE’s tools, such as lower costs for energygeneration, transmissionanddistribution, improvedsystemreliability,dampenedpricevolatilityinwholesalemarketsandthepossibilityofdelayingordeferringcostlysystemupgrades.

• SUNSHINEforEnergyServiceCompanies(ESCOs)ESCOsareunderstoodasonenovelbusinessmodel intheenergyefficiencymarket. InanESCOcontext,SUNSHINE’sproductsandservicesaretoolsthatcanhelpthecompanytocollectdirectinformation about their costumers’ energy performance aswell as to use it to the design andprovidethemostsuitableenergyefficiencyservices.Currently, ESCOs have very limited access tometer data and review billing data and spend animportantamountoftimecollectingandverifyingtheinformation.Therefore,theaccesstodirectreal time information about buildings and lighting systems as well as the analysis of the data(energy performance and behaviour analysis) will also improve ESCOs’ capacity to implementenergysavingprojects.

• SUNSHINEforbuildingsmanagersandenergyauditorsThrough the developed solutions, the project ensures an improvement of the buildingmanagementandenergycertificationprocess(scenario1),abetterbuildingstockmanagement,betterenergyperformanceandcost/performanceratio(scenario2)aswellascost-effectivenessthroughtheuseofatoolforoptimizingpubliclightinglevels(scenario3)fortechnicaloperators.

41IEAReport,CapturingtheMultipleBenefitsofEnergyEfficiency.2014.https://www.iea.org/Textbase/npsum/MultipleBenefits2014SUM.pdf


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Energymaps (scenario 1) providemethods to implement automatic large-scale assessments ofbuildingenergybehaviourbasedonavailablegeodataandbuildingpropertiesderivedfromothersources(otherarchivesavailableinotherlocalornationalorganizations,orinformationcollectedthroughcrowdsourcingtechnologies).Solutions from scenario 2 (Building Energy Awareness) enable maintenance companies andbuilding managers to monitor and to control the energy consumption of the heating/coolingsystems of a building by connecting the SUNSHINE application to the energy meters andcontrollers that is also connected to local weather data. Therefore, the App developed bySUNSHINE is able to identify the contributions of dweller behaviour and local weather on themeasuredperformance.

• SUNSHINEforcitizensCitizensbelong toa secondarypotentialmarketofSUNSHINEasalready statedwhenanalysingtargets.Inthefuture,citizenswillbeabletouseSUNSHINEforreducingenergywastecausedbyheating/cooling systems unnecessarily running in weather conditions that do not require it.Buildingontheresultsofscenario2,dwellersofbuildingswillbeabletolowertheirenergybillsby receiving personalized automatic alerts onweather conditions that require changes to theirveryowncooling/heatingsystems(downtotheirspecificbuilding).Whilethescenarioaddressespublic buildings in the first step, it can easily be up-scaled to encompass private residentialbuildingstockaswell.Through the citizen-oriented alert and communicationmanagement service, data consumptionregarding electricitywill be gathered using the sameplatformused for public buildings. In thiscase,thetargetwillbethefeedbackgiventotheconsumerusinghis/herrealtimeconsumptiondataandthepredictionofoverallconsumption.

3 IndividualbusinessplansandstrategiesThischaptershowstheresultsofthefirstpartoftheworkdonewithpartnersaboutthefutureexploitationofSUNSHINEoutputsfromanindividualpointofview.Allpartnersinvolvedinpilotshadtoperformabusinessplaninwhichtheyexposedhowtheywill integrateSUNSHINEresultswithintheirorganization.

The goal of primarily working individually was to analyse to what extent pilot partners couldintegrateSUNSHINEresultswithintheirownorganizationandbusiness.Therefore,pilotpartners


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were asked to analyse their environment, what they wanted to sell, to whom and how. Theresults fromthis individualexercisearealignedwith the resultsobtained in thegeneralmarketassessment. Individual business plans show, from amore specific perspective, the targets andvaluepropositionsofpartnersseparatelyandbegintooutlinethesetofproductsandactivitiesthatmighttakeplaceduringtheshortandlongtermexploitation.

Hereafter,thissectionisdividedintotwoparts.Firstly,asummaryofeachpilotpartnerbusinesscanvas in which the identification of individual value proposition, costumers segments, keyresources, activities, partnerships and revenue streams is provided. Secondly, each partnerbusiness plan is analysed and a summary of how SUNSHINE is going to be adopted by eachpartnerandwhatarethemainproductsandservicesderivedfromthis isprovided.Fordetailedinformationabouteachpartner’sbusinessplan,please,referdirectlytotheAnnexsection.

3.1 Partners’canvases:Summaryandanalysis

A business canvas is a visual chart of a company with elements describing a firm orproduct'svalueproposition,infrastructure,customers,andfinances.Thecanvaselaborationwasthefirststepperformedbyeachpilotpartnerasastartingpointtodefineitsownbusinessplan.

In this section, we provide a summary of the different canvases, developed by each partner,paying attention to those aspects included within all the canvas. For this reason, next, wehighlighttwokeyaspectsoftherightsideofthecanvas,whicharethevaluepropositionsandthecustomerssegmentsidentified.Thoseaspectsarekeytodefinethestrategyofthebusinessandtowhomthisstrategyisaimedat.

Thecanvassummarycontinueswiththekeyaspectsoftheleftsideofthecanvas:keyresources,activities,partnershipsand, finally, thedifferentrevenuestreamsmodelsproposedbypartners.Thissideshowshowthepreviousstrategyisgoingtobedeployed.


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Figure2.ExampleofaBusinessCanvas.

Source:Strategyzer

• Valuepropositions

AllpartnersshareacommongeneralValueProposition,whichistoreducethecostofenergy.Forthem,thismeanstoincreaseenergyefficiencyinthelongterm.SUNSHINEprovidesasetoftoolsthatallowenergydatacollectionanditsanalysis,whichisusefulformonitoringandplanning.Asaresult, SUNSHINE feeds thedecisionmakingprocesswithqualifieddata showing its capacity toimprovethedecisionsmaderegardingenergypoliciesinthepublicsector.Therefore,SUNSHINE’sfinalgoalistoimproveenergyefficiency.

ThisgeneralValueProposition,sharedbythepartners,hasbeendifferentlyexpressedbyeachofthem,asTable4shows:


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Table4.SummaryofvaluePropositionsbypilotpartners.

Partner ValueProposition

SET This partner’s main value proposition is to offer a set of solutions that willcontribute:

- Tosavemoneyandenergy.- To plan (policies and energy efficiency strategy) in a more easy

manner.- Toaccesslivemonitoring.- Togeneratelesslightpollutionandlesscarbondioxide.- Tofostercitizeninvolvement.- Toimprovethepublicopinionoftheorganization.

Epsilon Epsilon’smainvaluepropositionistooffertoolsforenergyassessmentinorder:

- Toprovidesupporttocitiestobecomegreenerandsmarter.- Tolowertheirenergyconsumptions.- ToensureanefficientuseofHVAC(Heating,Ventilating,andAir

Conditioning)systemsbyusingweatheralertsandsuggestionservice.

Sinergis Sinergiswillmostlyfocusontwomainvaluepropositions:- To support the customer with energy planning/monitoring needs

(energymaps).- Tofosterenergyefficiencyimprovementsintheprivatesector(energy

maps).- To allowmonitoring energy consumption and energy waste (energy

dashboard).InformaticaTrentina

InformaticaTrentinaisinterestedinprovidingtheICTsolutionsinorder:- To support the energy saving of the buildings owned by the local

publicadministrationoftheValdiNon.- To foster knowledge sharing and exchange best practices with local

ICTcompanies.Meteogrid Meteogrid’smainvaluepropositionfocusonclimateservicesis:

- Toimproveenergyefficiencyusingmicro-meteo: lowercosts,greatercomfort,andefficiencycertificate.

- To assess urban planning and reduce greenhouse gases emissions,heatislandeffectsandexposuretometeorologicalrisks.

GeoSys GeoSys’mainpropositionis:


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- Toprovidesupporttothelocalauthoritiestobecomemoreefficient.- Toallowmonitoringofenergyconsumptioninpublicbuildings.

Graphitech Graphitechvaluepropositionsaremanifold:- To provide visualization of geo-referenced information to facilitate

decision-making.- Toofferremoteaccessandcontrolofpublicilluminationsystem.- Tomonitorandcontroltheenergyconsumptionsofbuilding.- Toidentifybuildingsthatneedtoberefurbished.- Toimprovecitizens’involvementinshapingthefutureoftheircity.

Graphicalight ThevaluepropositionofGraphicalightfocusesonthefollowing:- Toimproveenergyefficiency.- Todecreasepublicenergywaste.- Todisseminateawarenessonenergysustainability.- To involve citizen in the participation of the public light and energy

definition.GiStandards ThevaluepropositionofGiStandardsis:

- ToprovideexpertiseinthestandardizationIndustry.- To reach various standardizationbodies andotherorganizations and

linkthemtoSUNHINE.C3L C3LhasproposesoneclearValueProposition:

- Toprovideintellectualknowledgeinstandardizationtotheindustry.HEPESCO HEP,asanESCO,describesthefollowingValuePropositions:

- To reduce energy consumption and reach energy optimization inbuildings.

- Toprovidefundingforcostumers.- Tooffersharingofsavings.

• Costumerssegments

When it comes to thinkingabout towhomSUNSHINEproductscouldbesold,mostof thepilotpartners identified the public sector and, in particular, the local public sector, as the maincustomer. Infact,SUNSHINEofferssolutionsfor localgovernmentsthathavetomeetEuropeangoals(i.e.CovenantofMayorsandSEAP)but,ontopofthat,itofferssolutionstocitiesthatwanttobecomemoreenergyefficient.

All SUNSHINE partners have identified the public sector as one important segment costumerwithin their canvases. The concepts used in this part of the canvas were: “local authorities”,


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“regional and national authorities”, “small and big municipalities”, “public buildings” and“governments”.Inaddition,pilotshaveshownthatSUNSHINEcostumerscanbecitiesofdifferentsize.Forbig cities, SUNSHINEappearsasauseful tool that centralizes,analysesandmanagesagreat deal of data. For smaller cities, SUNSHINE is amore accessible solution in termsof costs(lessexpensive)butalsointermsofaddressingdifferentneedswithinonetool(theplatform).

Canvasesalsoreferredtotheinfrastructurebuildingsectorgenerallyspeaking(maintenanceandenergymanagers, fromboth thepublic and theprivate sectors). Specific attentionwaspaid tobuildingmanagersofseveraltypesoffacilities(hospitals,shoppingmalls,sportsandleisure,justto give a few examples). The set of products and services that partners think of are alsounderstoodasasetofusefulsolutionsforprivatecompanieswithlargeassetofbuildingswhenwillingtoreducetheirenergybillsorchangetheirenergystrategy.

ESCOs are the third main customer included in the partners’ canvases. Partners believe thatESCOscanwidenand improvetheircatalogueofservicesby includingSUNSHINEtools. Insomecases,ESCOsarementionedalongwithutilitiesorHVACcompanies(Heating,Ventilating,andAirConditioning).

Finally, the followingaresometypesofcustomers thatwerenotmentionedbyall thepartnersbutonlybysomeofthem:

- R&D community: particularly those partners that contribute to the development of ITsolutionsreferredtotheR&Dindustry.

- Climate industry: companies similar to Meteogrid that are interesting in providingservicesthroughmapsusingweatheralerts.

- Energyauditors:althoughthistargetwasidentifiedinthemarketassessment,itwasnotmentionedveryoften.

- Managersoflargebuildingassetssuchastheservicesector(forinstance,hotels,financialservicesormobiletelecomsamongothers)meaningtogobeyondpublicsector.

- Real estate offices interested in assessing the energy performance of their portfolio ofbuildingstosaleorwhenwillingtobuybuildings.

- Academia: some partners identified the academia as a costumer interested in havingaccesstodataperformancedatabasesforitsanalysisfromaresearchpointofview.


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Figure3.MainCustomerSegments

Finally, it is important tonote thatpartnershave identified theircustomers taking intoaccountthefinalgoalofSUNSHINE:toreducethecostofenergyincities.Therefore,intheurbancontext,citizensareunderstoodasthefinalbeneficiaries,andthisisalsocapitalforallpartners.

• Keyresources

Duringthecanvaselaboration,partnershaveidentifiedthesetofassetsthattheyneed inordertomaketheirbusinessideawork.Thecanvasanalysisconcludesthatpartnersshareasetofmainresourcesthatareneeded inordertoguaranteefutureexploitationfroman individualbusinessperspective.

Partnersdistinguishbetween individualandcollectiveassets. The formeraremostly related tothe individual expertise of each partner (in geographic systems, in telecommunications, instandards, in lighting management, in meteorological services, or in calculation of savingsalgorithms, for example) while the latter refer to the collective expertise developed by theSUNSHINE’sConsortiumduringtheproject (experiencecoming frompilots).Generallyspeaking,partners state that their teams (in termsofhuman resources) and their previous knowledge intheir field have been reinforced throughout the project. In addition, each partner’s network(previous clients and key partners in other projects) has also been identified as an importantasset.

Technical resources have also been revealed as important. They include both partners’ tools(server,hostingservice,models,controltoolsoreventele-centre)andcommonSUNSHINEtools(theSUNSHINEplatform,includingtheSUNSHINEAppanditsserver).

Dataaccessandintegrationisanotherkeyresourcegenerallyidentified:SUNSHINEpartnershaveaccesstolivedata(fromenergymetersinpilots,climatealerts)andtopublicopendata(cadastre,energy certificates, topographicmaps, etc.). This data about the public sector and the buildingstock is integratedand ingested intotheSUNSHINEplatform. Insomeoccasions,somepartnersalsoidentifiedtheirowndatabasesasakeyasset.

Localpublicadministration

Infrastructurebuildingsector

ESCOs Others


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Finally, canvases also included financial resources understood as the availability of capitalnecessary todeploy andexploit the setof actions andproducts thatpartnersdepicted in theirValuePropositions.

Figure4.Keyresources

• Keyactivities

Partners are aware that SUNSHINE’s final product (the platform) will require furtherdevelopmentsbeforereachingthemarket.Takingthisintoaccount,thesearethecommonmainactivities thatpartnershave included in their canvaseswhen thinkingabouthow tomake theirbusinesswork:

- Projectmanagement:onceeachpartnerdecides thewayto integrateSUNSHINEresultswithin itsbusiness,theorganizationwillhavetoput inplacethenecessarymechanisms(resources,organizationalstructure,communication,etc.)tomakeithappen.

- Platformmanagement:thefirstactivitytobeperformedduringatleast2-5yearswillbetheplatform’smaintenanceanditsmanagement.

- Data collection and analysis: partners understand that activities related with datacollectionwillberequiredforeachproductorservicethatwillbeoffered.

- Salesandmarketing:disseminationandmarketingactivitieswillalsohavetotakeplaceinordertoletclientsknowaboutthenewservicesorproductsthattheorganizationoffersintermsofenergyefficiency.

- Product consolidation anddevelopment: for somepartners, thenewSUNSHINE-relatedserviceswillneedtobecustomizedanddevelopedtomeetcustomers’needs.

- Hardwareinstallationandtraining:thisactivitywilltakeplaceeachtimethatacustomerpurchasesanewserviceorproductrelatedtoanyofthethreescenariosoftheproject.

Partnersteams Individualexpertise

SUNSHINEplatform&App

Dataaccessandintegration

Collectiveexpertise

IPRgenerated


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• Keypartnerships

Finally,partnerswereasked to identifya setofalliances thatwouldbekey toboostSUNSHINEwithintheirownbusiness.Fromageneralpointofview,thepartnerscoincidedininvolving:

- SUNSHINEConsortiummembers.- Partners’ current networks/stakeholders (such as lighting system manufacturers,

telecoms,ICTsuppliers,andenergymanagersandauditors).- Researchcommunity:researchcentres,otherEUresearchprojects,R&Dcompanies.- Localandregionalgovernments.- Localcommunity:schools,hospitals,NGOs,citizens’associations.- Intergovernmental organizations: European Interest Groups, energy efficiency agencies

andassociations.

In one specific case (see SET business plan), the business strategy included a description of apartnership structure that would be necessary (according to the Italian legal framework) todeploy services related to management of public lighting. In particular, this business planproposes to use a project finance approach42 as a financial tool in which an ESCO, a bank(financer) and a municipality would work together. This model would be used as a financingprojectinwhichtheinvestors(orsponsors)contributetogetherinequityconditions.

• Revenuestreams

SinceSUNSHINE’sapproachisbasedonopennessandopensoftware,theinitialideaisthataccesstotheplatformandApphastobefreeofcharge.Theintegrationoftheplatformcantakeplacefromdifferentways.Forinstance,thecostumercanbeconnectedtoSUNSHINEserverexternallymeaning that the SUNSHINE platform is based on the SUNSHINE server and customers haveaccesstoacustomizedtoolaccordingtotheirneedsandtechnicalspecifications.Anotheroptionis that integration takesplaceby integrating theSUNSHINEplatform into thecustomerexistingserver.Theeffortsassociatedwillvarydependingonthetypeofconnection/integrationbutalsothelevelofcustomizationandfeaturesthateachcostumermightneed.

Dependingonhowtheconnectionorintegrationoftheplatformisfinallyachieved,thefollowingaresomeofthepossibilitiesofrevenuestreamsproposedbythepartners:

42https://en.wikipedia.org/wiki/Project_finance


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- Free of charge use of the platform and revenue stream based on the energy savingsachievedbyitsuse(anexampleisprovidedinEpsilon’sbusinessplan).

- Deploymentof a “freemium”model: products and services areprovided freeof chargebutapremiumfee is charged foradvanced features, functionalitiesor relatedproductsandservices.

- Priceofenergymapswoulddependonthecity’scomplexity(sizeofthebuildingstock,availabilityofpublicdata).

3.2 Partners’businessplans:Summaryandanalysis

Afterthecanvasdefinition,eachpilotpartnertranslatedthecanvasintoabusinessplanfocusingonwhatservicesorproductstheywouldoffer. Inthissection,commontrendsamongbusinessplans are identified paying specific attention to two aspects: the degree of integration ofSUNSHINEwithin theexistingbusinessand theproductsandservicespartnershave included intheirbusinessstrategy.Detailedinformationabouteachpartner’sbusinessplancanbefoundintheAnnex.Theanalysisofthebusinessplansdrawsafewcommontrends.Generallyspeaking,wecanrefertofourlevelsofintegrationandadoptionofSUNSHINE’stoolsbypartners:

- Level 1. Add legitimacy to the existing business: being part of SUNSHINE offers a newexperiencetoexpandcurrentbusinessknowledge.Someresultsandlessonslearnedfromtheprojectcanbeusedbythecompanyinthefuture.

- Level2.Boostexistingbusiness:resultsofSUNSHINEcanbeappliedforthecompanytoofferabetterorup-scaledservicetoexistingcustomers.

- Level 3. Open new business opportunities related to the existing business (newcustomers).

- Level4.Opennewbusinessopportunitiesexpandingtheexistingbusiness(newbusinessareas):SUNSHINEresultscanopennewbusinessareas,notexploredbeforeduetolowerexpertise,knowledgeorcredibility.

C3LandGistandardsareinlevel1sincetheirmainvaluepropositionistheprovisionofstandards.Regarding the rest of the partners, it is difficult to find a common trend. The analysis of thecanvasesandbusinessplansconductedshowthatsomepartnerswillexploitSUNSHINEreachingan integration level between 2 and 3 (Graphitech, Hepesco, Trentino Network, Epsilon,Graficalight,)whileotherswilldosoreachinganintegrationlevelbetween3and4(Sinergis,SET,Epsilon,Metgrid,GeoSYS,InformaticaTrentina).


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These are the common trends found among the partners’ individual business plans. In otherwords, these are themain products and services that partners are considering to exploit usingSUNSHINEresultsandoutputs.

• Energy-mapsdevelopmentandSEAPconsultancyservices(Sinergis,Epsilon,InformaticaTrentina,Meteogrid,GeoSys)

ForSinergisandEpsilon,energymapsandenergydashboardsaretwokeytoolsusefulforcitiesthat participate in the Covenant ofMayors program and, in particular, that are in the way ofdeveloping their Sustainable Energy Action Plan. In this context, energy maps (Energy-maps)provide relevant information to support energy planning andmonitoring at the local level andsupport cities to lower their energy consumption. The visualization of information isconceptualized as a tool to facilitate decision-making. The use of Energy-maps can also be anopportunitytoshowcasecitiesasgreenerandsmarter.Inthiscontext,somepartnersthinkaboutselling new Energy-maps in cities that are geographically close to the areawhere the pilots inscenario1tookplace.ThisisthecaseofInformaticaTrentina,whichisplanningtheextensionofEnergy-mapsintherestoftheValdiNon,forinstance.InthecaseofGeoSys(Malta),thebusinessmodel proposes the adoption of SUNSHINE tools for Energy-maps by the Building RegulationOfficeofMalta,whichisthenationalbuildingcertificationagencyinthecountryandinordertoexpandthecreationofEnergy-mapsforallmunicipalitiesofMalta.

Also, the energy dashboard provided by the platformwill offer solutions based onmeter datamanagement.Thesesolutionswillfacilitatethecomparisonbetweenconsumptionbehaviourandenergybills.Intheend,thiswillallowfortheidentificationofinefficientenergybehavioursand,ultimately,forachangeofenergypolicies.

BesidesusingEnergy-mapsandexpandingwhathasbeendoneduringthepilots(inscenario1),somepartnershavealsothoughtaboutusingEnergy-mapstogenerateclimaticmapsforenergyefficiency planning. This is the case ofMeteogrid,whichwill combine the energymaps-relatedservices with climate projections energy maps (for more information, see Meteogrid businessplanintheAnnex).

• Development of centralized IT service based on the exploitation of scenario 2 tools:remote control of building energy consumption and data analysis (Graphitech,Meteogrid,Epsilon,GeoSys,HEP,TrentinoNetwork).


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The SUNSHINE platform can also be used to offer services related to real-time consumptioncombined with weather alerts. Providing tools for buildingmanagers so they can control theyenergyconsumption,decreaseitandreducecostsisthemainobjectiveofthissetofservices.Inthiscontext,SUNSHINEwillbesoldasthe integralsolutionthatcombinesweatheralertswithasuggestionservicetoreachanefficientuseofHVAC(Heating,Ventilating,andAirConditioning)systems.Graphitech’sbusinessplanstatesthatthecompanywillprimarilyofferservicestothe localandregionalmarketsbecausethecompanyalreadyhasaccesstothenecessarydata.However,theyalsoconsidertoexpandservicesandproductsrelatedtoscenario2tootherEuropeanandnon-Europeanmarkets.GeoSys’s business model focuses on providing a building assessment model that will beconnectedtotheBuildingRegulationOfficecertificationsdatabaseandthatwillprovideservicetoallMalta.Meteogridwillcontinuetoprovideservicesrelatedtoweatherforecastandalerts,offeringHVACmanagement.Theirbusinessplanproposesthecreationofautomaticmeteorologicalstations inbuildings.EpsilonwillexploitthepredictionmodelthroughtheuseoftheSUNSHINEmobileApp.Trentino Network, which is a public owned company operating in a monopolistic market thatmanages fibre optics infrastructure, values SUNSHINE as an internal tool for the company.Trentino is, in this respect, an end-user by itself. SUNSHINE tools will therefore contribute tomodify the variable costs in the company turnover. However, in its business plans, TrentinoNetwork also considers launching new services to wholesale customers by offering managedservicesinthecontextofhousing.Finally,despitethepossibilitiesofferedbySUNSHINE,HepescoistheonlypartnerthathasclearlystatedthatSUNSHINEwillnotbeusedafterthecompletionoftheprojectduetothehighcoststheintegrationofSUNSHINEwouldmeanforthecompany(particularlyasaconsequenceofthelackofITpersonnelabletousethesourcecode).

• Exploitationofscenario3:lightingsystemsservices(SET,Graficalight)SETDistribuzione(andGruppoDolomitiEnergia)andGraficalighthavebuilt theirbusinessplansbasedontheworkdevelopedinscenario3sincelightingsystemsistheirfieldofexpertise.


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SET’s business plan offers lighting networksmanagement services for small and big cities thatincludeadvice,management,andrenovationofanentirelightingnetwork.SETofferssupportformunicipal lighting plans, but also personalized services such as the maintenance service, themanagementofthenetwork,gradualrefurbishment(withsmartenergymetersandpointtopointcontrolsystem),givemonitoring,andannualstatisticalanalysis.Todoso,SET’smaintoolwillbetheSUNSHINEAppandthewebclient.Similarly,Graficalightplanstoofferenergysolutionsto improve lightingsystemsbyusingsmartremotetechnology.TheirexperienceduringthepilotandthesuccessfulresultstheyachievedintermsofdemonstratingenergysavingsisastrongcredentialthatGraficalightiswillingtousetoofferservices tooptimizeenergyreduction.Therefore, thecompany’sbusinessplandescriptionhighlights the use of SUNSHINE technology to improve the quality of the services they alreadyoffer. From amethodological point of view, Graficalight uses PC/tablet for themeasurementphase by collecting and geo-referencing automatically all data. The creation of a model andalgorithmof consumption allows rapidly drafting action plans inwhich the cost-benefit can bequickly analysed. Finally, during the pilot, Graficalight performed a wide participatory process,whichallowed themtoalsooffer services related tocitizen involvement inenergydefinitionofpubliclightingsystems.

• Standardsdevelopment(C3L,GiStandard)Finally, C3L and GiStandard’s business plans tell us something different in terms of businessexploitation. These are two well-consolidated companies to which SUNSHINE adds legitimacy.They will include SUNSHINE as an additional project in their portfolio. Both companies takeadvantageofthelackofknowledgeonstandardizationinthefieldofenergyefficiencytodeploystandards in the security, regulatory and privacy fields. They can be considered experts in thisfield.In the case of GiStandard, its business plan refers to standard development, organization ofinternational workshops, liaison among projects and standardization bodies, and creatingawareness about standards and dissemination of project results. SUNSHINE has contributed tobuildnewconnectionswiththeenergyefficiencydomain.C3L shares the same value proposition as GiStandard. It therefore offers knowledge onstandardization. However, their approach differs since they have concluded that to have asignificant increase of knowledge on standardization in energy efficiency requires a significanteffort to be competitive in this domain. Knowledge building in standardization requires an


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important effort for the company and this circumstance will probably end up leading to lessinvolvementinH2020projects.Thecompanywantstorefocusoncybersecurityissues(standarddevelopmentandtraining).

• Consultancyforsmartcities(allpartners)Finally,partnershavealso includedactivities thatarenotdirectly related topilot scenariosandthatrefertoadditional/complementaryservicesinthefieldofenergyefficiency.Itisthecaseofconsultancyservices.Partnersbelievetheywillbeabletoofferthefollowingservices:

- Supporttoenergyplans:designandenergystandardcomplianceorsupporttolocalandregional authorities and agencies to define, implement andmonitor policies accordingwiththeEUandnationalgoalsonenergyefficiency.

- Climatemanagement andHVAC support and training: training courses tomanagers onhowtosaveenergywhileincreasingcomfort.

- ESCOsupportandassessmentingeneral(seeMetgridbusinessplan).- Consultancy on standards: expert advice to governments, industry and international

researchprojects(H2020).

4 Consortiumexploitationplan:SUNSHINEafterSUNSHINE

ThissectionincludestheresultsoftheactivitiesconductedwithSUNSHINEConsortium’spartnersregardinggeneralexploitationofSUNSHINE(whichgoesbeyondindividualpartners’actions).

The ConsortiumAgreement and theDescription ofWork state that all pilot technologywill bekept operational andmaintained from a software standpoint by the Consortium for two yearsafter theproject’send.However, inorder toaddto this statement,ageneraldiscussionduringthelastfewmonthsoftheprojecttookplaceamongpartners.

The section starts with a SWOT analysis, which was used as a starting point for the generaldiscussion. Next, the document describes the benefits of SUNSHINE in terms of the project’scompetitiveadvantage. Finally, the sectionendswith theexploitationplanand theovercomingbarriersforasuccessfulexploitation.


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4.1 SWOTAnalysisforSUNSHINE

• Strengths:

- MultidisciplinaryteamsinvolvedintheConsortium.- Solutionsforbothpublicandprivatesector(municipalities,publiccompanies,private

entities).- Noveltyofthesolutionsandlittlecompetition.- Accuracy of data generated throughpilots due to direct data collection from smart

metersandopendata/publicdata.- Analysisonenergyperformanceandbehaviourbasedonaccuratedata.- Availabilityofthesolutiononamobileapplicationthatcanbewidelyused.- Innovativeandeasytouseplatformusingtechnologicalapproachestosolveclassical

issues.- AdaptabilityandcustomizationofSUNSHINEsolutionsaccordingtousers’needs.

• Weaknesses

- Difficultextrapolationtoothernationalcontexts:Pilotsconcentratedinfourcountries(North-Italiancluster)andsmallandmid-sizedcities.

- Diversityof scenarios:effortsput indifferentsolutions insteadof specialization intoonesinglesolution.

- Limitation due to technology readiness: SUNSHINE final product (platform) as aprototypenotreadyformarket.

- Technicalcomplexityofthesolutionsandtechnologyrobustness.- Nodirectprovisionof recommendations throughout the tools.Difficulty to improve

energypolicyorbehaviourbyonlyusingtechnicaltools.

• Opportunities

- European frameworks to foster sustainability in cities: EU Directives, Covenant ofMayorsandSEAP.

- Nationalandregionallawsforcingcitiestowardsenergyefficiency.- Increased awareness of sustainability in municipal management. Cities want to be

smarterandsustainabilityplaysakeyroleinthisprocess.Citizenincreasedawarenessanddemandofenergyefficiencyasavalueofqualityoflifeinacity.

- Citizens’ participation: greater involvement of citizens in such municipal/local


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decisions.- Technologyretrofitting:buildingsrefurbishment(i.e.Europeancitieswitholdbuilding

stock in historic centre) and lighting systems network renovation to becomemoreefficient(LEDandsensorintroductionasatrend).

• Threats

- Diversity and quantity of projects involving other cities of the Europe: Europeanprojects,H2020,etc.

- Increased and strong competition: private sector with longer experience andexpertise in this field, able to offer more robust and developed tools at morecompetitiveprices.

- Growing involvement of citizens as providers and users of renewable energy fromself-production(photovoltaicpanels,energycooperatives,etc.).

- ESCOs’ experience in providing energy efficiency services. Competition withSUNSHINEservices.

- Lackofresourcesinthepublicsectortoinvestinenergyefficiencytoolsorservices.

4.2 SUNSHINEcompetitiveadvantages

The Consortium was also asked to identify the competitive advantage/s of SUNSHINE. Thefollowingresponsesweregiven:

- Legitimacy: SUNSHINEproducts come fromaEU fundedproject. Thismeans that, fromthe very beginning, the project has received the trust and support of the EuropeanCommission.ThisbackupfromEUinstitutionscanbeusedasacredentialoraguaranteeofquality.

- Proofofconceptdemonstration:SUNSHINEtechnologyandproductshavebeentestedinrealenvironments.Inparticular,eightpilots’citieswereinvolvedin3scenariosduringatleast6months.

- Partners’ know-how: the composition of the Consortium, which wasmultidisciplinaryand international, and the work conducted during the three years of the project hasresultedinanimprovedpartners’expertiseregardingenergyefficiencysolutions.What’smore, the concentration of several pilots in the North of Italy has also given rise tospecificknowledgeaboutthisgeographicalcontext.

- Relative low initial investment: SUNSHINE’s solutions do not use expensive high-techsolutions and, very often, take advantage of the existing technology of a building or


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lighting system. In addition, the exploitation model proposed by partners consider tocombine free access with paid premium services (for example, subscription orconsultancy services). SUNSHINE solutions are cheaper than big companies’ that offerexpensivesmartcityinfrastructurekits(i.eSiemensorSchneiderElectric).

- SUNSHINE platform: the integration of several energy efficiency solutions into oneinteroperable tool that allows the re-use of public data is one of the most importantcompetitive advantages SUNSHINE has. Usually, energy efficiency solutions aredisconnectedandofferedseparately.

- Multitargetsolutions:a. Energy-maps:energymapsseemtobearelativelycheapsolution(incomparison

toenergycertificates) inwhichpublicopendata (cadastral, topographic,energyconsumption,energyinstallationsanddistribution)arebroughttogether.Energy-maps are the result of using City GML open data model and format for thestorage and exchange of data. In this context, there are limited numbers ofonlineservicesthatdisplaypublicbuildingenergycertificates.

b. Energyperformancecalculation: Thecalculationoftrueenergyperformanceofbuildings taking intoaccountweather conditions since specificweatheralerts iscurrentlynotavailableinthemarket.

c. Short termbenefits in lightingsystemssolutions: thiscompetitiveadvantage isparticularlykey regarding thesolutionsof scenario3 (remotecontrolof lightingnetwork)wherethetechnologyanddevelopmentofaspecificalgorithmallowstorapidly identify weaknesses of a lighting system and to come up with easysolutions(retrofit,dimmingchanges,structureofthesystem,technology).

- Multitargetaudience:SUNSHINEsolutionsnotonlyfocusonprovidingsolutionsforthepublicsectorbutalsofortheprivatesector.Inaddition,SUNSHINEsolutionsarenotonlyfororganizationsbutalsocanbeusedbycitizensinanindividualmanner.Thetoolscanbeeasilyadaptedtocitizens.

4.3 Shortandlongtermgeneralexploitation

The different interests of the Consortium’s partners are a challenge for the exploitation of theproject results. Nevertheless, several ideas arose from the discussion. In this subsection wepresentthediscussion’smainconclusions.WebelievetheywillleadtoseveralpossiblescenariosofexploitationofSUNSHINEresults.

• Consortiumcommoninterestsandgoals


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As mentioned earlier, SUNSHINE’s Consortium is a multidisciplinary one and the differencesamong partners (private/public organizations, domain expertise, and country/region) have alsoturned intodifferent interestsandexpectations,whichhavemadeitparticularlydifficulttofindcommoninterestsregardingexploitation.

Tostartwith,itisimportanttohighlightthatnotallthepartnersarewillingtopursuethesamegoalsandevensomepartnershaveexplicitlyexpressedthattheydonotwanttofurtherexploittheresultsoftheprojectafteritscompletion.

Thissaid,generallyspeaking,themaincommongoalregardingthefutureofSUNSHINEistokeeptheproject alive and to exploit its outcomes taking thepartners’ diversity into account. In thisrespect,fourmainsharedinterestshavebeenidentified:

- To continue exploitation of the SUNSHINE platform and to develop/improvetechnologicaltools.

- ToexpandSUNSHINEsolutionstoothercities(indifferentregions/countries).- To do research in the fields of smart cities and energy efficiency (for example,

applyingtonewH2020calls).- TojoinaEuropeanInterestGroup.

• Productsandactivities

Theabove-mentionedcommoninterestshavetranslatedintoaproposalofseveralspecificgoalsandrelatedactivities:

- Exploitationoftechnicalproducts:o Toolsdevelopment:transformthecurrentprototypeintoaproductreadyfor

the market and improvement of the robustness of the existing tools.Generation of customer-oriented products and services (especially forscenario2and3).Developmentofcitizens’friendlytools.

o General platform exploitation and consolidation among users: spread ofSUNSHINE platform and App use with the support of partners (technicalsupporttousers).

- Smartcityservices:o Consultancy on energy efficiency: policy design and implementation, urban

analysis,recommendationsofimprovement.o Supportandassessmentformunicipalities(andmembersoftheCovenantof

Mayors) for SEAP design, execution and evaluation at the local level bycreatingEnergy-mapsandderivedservices.


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o Provision of smart applications for energy assessment and energy buildingoptimizationatcity,regionalandnationallevels.

o Personalizedservicestoimprovelightingsystems:maintenance,managementoflightingnetworks,livemonitoring,assessmentandanalysis.

- TrainingactivitiesontheuseofderivedorextendedSUNSHINEtoolsforusers.- Citizens’ involvement activities: include participation and citizen involvement in

energyefficiencyprojects.- Research:

o Furthergeneralresearch:learnfromtheprojectresultsandjoinnewresearchprojectsinthecontextofHorizon2020.

o Sunshinecontinuity(“SUNSHINE2”):researchactivitiesforthedevelopmentof new innovative digital services in order to achieve greater results in theenergyefficiencydomain.

- Other:o Europeaninfluence inenergyefficiency: joiningacommoninterestgroupor

anassociationlikeEITClimateKIC.ThegoaloftheEEIGistoactasawholetopromote and exploit the SUNSHINE achievements and technologies,participating to call of tender or calls but also to access the market andpromoting/sellingSUSNHINEtopotentialcustomers.

o Knowledgeplatformcreation:providedocumentationandbestpractices forre-useonotherlocalcontexts.Aknowledgeplatformwouldbeusefultofindbestpracticesandguidelines.

o Expand SUNSHINE challenge as an international challenge on smart energyefficiencyinurbancontexts.

• Targetaudience

Generallyspeaking,thereseemstobeaspecificaudiencethatmattersforallpartners:thelocalpublicadministration.Inthisrespect,somepartnershaveclearlyidentifiedtheiraudience,whichwouldinclude:

- The North Italian cluster (local and regionalmarket of Trentino Province, includingRovereto),Ferrara,BassanodelGrappa(andVicenzaprovince).

- ThemunicipalityofLamiainGreece.- All Malta’s public buildings through the involvement of the national Building

RegulationOffice.


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Discussion also pointed to other targets which did not have the same interest to all partners.Referencesweremade to ESCOs, building and energymanagers, citizens, energy agencies andenergyauditors,theindustrialsector,andtheexpansiontotheUSA.

• Organization

Discussiontookalsoplaceregardingorganizationalmatters.Inthisregard,itisimportanttopointoutthatduetotheheterogeneityofinterestsandgoals,thedefinitionofanorganizationalmodelwas challenging. As a result, the Consortium has not been able to reach an agreement aboutorganization and governance. What follows can only be considered examples of the differentmodelsthatweredebated:

- CreateorjoinaEuropeanEconomicInterestGroup:thisoptionwasthepreferredonebythepartners.OnepotentialgrouptojoinwouldbetheClimateKIC43.

- Createanallianceoranetwork:theadvantageofthismodelliesinitsopenness.Itcanbeusefultoattractother/newpartnersand,therefore,togrowalargeralliance.OneoftheexamplesthatwasdiscussedwastheWifiAlliance(http://www.wi-fi.org/).

- Spin-offorcreationofaPublicPrivatePartnership:somepartnersproposedsettingupaspin-off (involving theSUNSHINEConsortium) inwhich common interests (for research,for consultancy, etc.) could be brought together. Due to SUNSHINE’s competitiveadvantage/s, already identified, the spin-off was believed to be competitive in themarket.

• Revenuestreams

Finally, thewaypartners conceive thebusinessmodel is alsoheterogeneous.As a Consortium,thereisnotacleardefinitiononhowtodefinetherevenuestreamsoftheexploitationactivities.

However, fromthe individualworkdoneonbusinessplans (seeBusinessPlansection) it seemsthat the most common revenue strategy could be the combination of free services andsubscription for products and services related to scenario 2 and 3. Regarding services andproductsforEnergy-maps,thepriceswereverydivergentalthoughonecommontrendwasthatthepricewouldbeestablishedaccordingtothecomplexityofthecity(sizeandyearsofbuildingstock,availabilityofdata).43http://www.climate-kic.org/


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• Exploitationroadmap

Asaresultoftheworkdonewithpartnersandtheanalysisofexploitationactivities,weproposeanexploitationroadmapthatcanbevisualizedasfollows.

2016

• Definizon,ifnecessary,ofaprotocolandagreementforserviceprovision:Organizazon,pricingpolicy,collaborazonopportunizesamongconsorzummembers• Fundraisingandhumanresourcesaczvizes• Workontherobustnessoftechnicaltools:Fromprototypetoproduct• Disseminazonandmarkezngaczvizes:Resultsoftheprojectpresentazonsanddemonstrazonstopotenzalusersandstakeholders• Maintenanceaczvizesoftechnicalproductsandcustomizazon• Trainingaczvizesofcurrentpilotsandnewusers• Awarenessoffutureresearchcalls

2017

• Disseminazonandmarkezngaczvizes:Productsandservicespresentazonsanddemonstrazonstopotenzalusersandstakeholders• Maintenanceaczvizesoftechnicalproductsandcustomizazon• Assessmentoffirstyearofexploitazonaczvizes• Awarenessoffutureresearchcalls• Preparazonforfutureproposals• Trainingaczvizesforusers

2018

• Disseminazonandmarkezngaczvizes:Productsandservicespresentazonsanddemonstrazonstopotenzalusersandstakeholders• Maintenanceaczvizesoftechnicalproductsandcustomizazon• Assessmentofsecondyearofexploitazonaczvizes• Awarenessoffutureresearchcalls• Preparazonforfutureproposals


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4.4 Overcomingbarrierstosuccessfulexploitation

Last but not least, SUNSHINE exploitation is not exempt of difficulties. The following are keybarriersthathavetobeovercomeinordertoachieveasuccessfulexploitation:

- Partners’heterogeneous interests inexploitation:aspreviouslystated,notallpartnerssharethesameinteresttocontinuewithSUNSHINEactivities.What’smore,someoftheactivities might only interest a few partners, which might not be enough in order tolaunchthem.

- SUNSHINE pilots’ involvement and integration: involvement of SUNSHINE pilots (pilotpartnersbutalsomunicipalities,users)isnotguaranteedinthefutureexploitation.

- SUNSHINE final products as prototypes: at the moment, they can only be consideredprototypessince theyarenot ready for themarketyet. In this respect,SUNSHINEtoolshave been tested in a limited real environment and issues related to technologyrobustnesshavebeenidentified.Fulldevelopmentoftheproductsisneeded.

- Gettinginitialfundingtostartwithexploitationactivities:startofexploitationactivitiesactuallydependsonpartners’interestsandfinancialavailability.

- Datacollectionanddataconsolidation:dataavailability,dataqualityanddatafrequencyarethree importantbarriers thatdependonhumanresourcesandonthe levelofopendataavailableineachnewgeographicalcontextinwhichSUNSHINEmightexpandto.

- Pricingstrategyestablishment:havingsuitablepricingstrategies,thatcoverthecostsofdeploying new solutions, for different targets/customers is something key but, at thesametime,noteasytoachieve,asthediscussionsandlackofagreementamongpartnershaveshown.

- Pilotusersoutreach:toreachandinvolvecostumersbeyondpilotusers’environments.- Publicadministrationbureaucracy:externalfactorssuchasbureaucracygoverningpublic

bodiesmighthinderSUNSHINEadoption.- Legal framework:different lawsand rulesonenergyon thedifferent EU countries and

regionsmight affect the interest of target audience in SUNSHINE solutions. Moreover,legaldifferencesarealsoabarriertodefineacommonexploitationorganizationbeyondConsortium partners with significant weight of Italian partners sharing a commonframework.


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5 ConclusionsThree main conclusions can be drawn from the work conducted under WP7 and describedthroughoutthisreport.

Ononehand,SUNSHINEisaprojectthatmatters.Smartcitiesaredevelopingaroundtheworld,andparticularlyinEurope.Sustainabilityisakeyfeatureinthesesmartcitiesdevelopment.Withnodoubt,amongotherthings,becomingmoresustainablealsomeansbeingmoreefficientwhenitcomestoenergy.Thisreporthasshownthattheenergyefficiencymarketis, inthisrespect,arealopportunity.Itisnotanicheanymorebutaconsolidatedmarket.Thereporthasshownthatenergy efficiency is a very sensitive topic for European institutions that are working hard toensure that countries and cities aremeeting the goals to reduce energy costs and to becomemore efficient. These circumstances clearly represent an opportunity for SUNSHINE, whoseresultsandtoolscanseemtobeusefulnotonlyforpublicadministrationsbutalsoforcompaniesworkingintheenergyefficiencyfieldandforindividualcitizens.

Ontheotherhand,despitetheopportunity,individualfurtherexploitationofSUNSHINE’sresultswill not be easy. Challenges regarding technology robustness, targeting the right market, orbuilding a strong competitive advantage have to be carefully taken into account. However,SUNSHINEhasanimportantasset:theexperienceobtainedduringpilotsisagoodstartingpointand several lessons,aspreviouslyoutlined,havebeen learned inorder to turnSUNSHINE toolsintomorematureproducts.

Finally, another important challenge lies ahead: althoughSUNSHINE’spartnersmay individuallyexploit theproject’s results, there is no clarity about the future of the Consortiumas awhole.PartnersstillneedtodecideontheeffortstobecommittedtokeeptheConsortiumalive.ThisisnotnewinEuropeanprojects:exhaustionaswellasthedifficultiesarisenthroughoutthelifeofaprojectusuallyendupinuncertaintyaboutitscontinuationinthefuture.


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EuropeanCommission.JointResearchCentre InstituteforEnergyandTransport.“TheEuropeanESCOMarket2013”.http://iet.jrc.ec.europa.eu/energyefficiency/sites/energyefficiency/files/jrc_89550_the_european_esco_market_report_2013_online.pdfEuropeanCommission.“EnergyEfficiency–thefirstfuelfortheEUEconomyHowtodrivenewfinanceforenergyefficiencyinvestments”EfficiencyFinancialInstitutionsGroup,2015.https://ec.europa.eu/energy/sites/ener/files/documents/EXEC%20SUMM%20Final%20Report%20EEFIG%20v%209.1%2024022015%20clean%20FINAL%20sent.pdfEuropeanCommission.Commissionstaffworkingdocument“Energypricesandcostsreport”Workingdocument,2014.https://ec.europa.eu/energy/sites/ener/files/documents/20140122_swd_prices.pdfEurope’sEnergyPortalhttps://www.energy.eu/andhttps://www.energy.eu/directory/regulatory.htmlEuropeanInstituteofInnovationandTechnologyhttp://eit.europa.eu/eit-community/kic-innoenergyEnergySectorManagementAssistanceProgramhttp://www.esmap.org/Energy_Efficient_CitiesEnergyCities,TheEuropeanAssociationoflocalauthoritiesinenergytransition.“EnergyCities'Proposalsfortheenergytransition”.Rethinkfinancingsolutions.Proposal3.1“Keepmoneyspentonenergyneartohome”January2014.http://www.energy-cities.eu/IMG/pdf/cahier_short_jan2014_en.pdfEY,“MappingpowerandutilitiesregulationinEurope”,2013.http://www.ey.com/Publication/vwLUAssets/Mapping_power_and_utilities_regulation_in_Europe/$FILE/Mapping_power_and_utilities_regulation_in_Europe_DX0181.pdfFrank,A.,“ESCOsandUtilities:ShapingtheFutureoftheEnergyEfficiencyBusiness”.PublishineonlineinGreenBiz,April13,2008.http://www.greenbiz.com/news/2008/04/13/escos-and-utilities-shaping-future-energy-efficiency-business


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ANNEX

- Individualcanvas- IndividualBP- Summaryofdiscussionsforgeneralexploitation1and2.