SmartSPIN develops, tests, validates, and exploits a new business model for Energy Service Companies (ESCOs) that leads to greater uptake of Smart Energy Services (SES) deployed via performance-based contracting in the commercial rented sector.
The commercial rented sector has huge potential for energy savings but has avoided the use of performance-based approaches like energy performance contracts (EPC) because of two main barriers:
- The long contract duration of EPCs
- The split incentive problem
SmartSPIN will remove both these barriers by demonstrating and validating an innovative Energy Efficiency-as-a-Service (EEaaS) business model in 3 pilot regions in Europe (Spain, Greece, and Ireland).
The SmartSPIN business model integrates energy efficiency with other energy services such as flexibility and creates value from both energy and non-energy benefits.
Combined with advanced measurement and verification concepts that use big data from smart equipment and a contractual approach that splits the benefits between all stakeholders in a fair and transparent manner, SmartSPIN builds trust between the parties that will lead to greater uptake of SES in the commercial rented sector.
To maximise both impact and uptake, SmartSPIN will develop a business model toolkit and train 350 actors in the value chain on the key features of the business model. The team brings together a consortium of experts from the entire value chain:
- ESCOs (Lawler Sustainability)
- Cloud-based energy management platform provider (SMARKIA)
- Energy supplier (EUNICE); M&V specialist (HEBES)
Combined with a research team that is highly experienced in developing business models for performance-based contracting (IERC), an expert in the development of predictive models and algorithms (TEC), and a specialist in the successful exploitation of sustainable innovations (EGEN), the SmartSPIN team has all the skills needed to facilitate the roll-out of this innovative business model in Europe.
Lawler Sustainability & SmartSPIN
Lawler Sustainability is a consortium member, work package leader, and Irish demo site leader in the international innovation project SmartSPIN. Funded under European Union’s Horizon 2020 Research and Innovation Programme, the project officially started on 1 September 2021 and will be running for three years until 31 August 2024. Coordinated by International Energy Research Centre (Tyndall National Institute, University College Cork, Ireland), the project consortium includes 7 partners from 4 countries, representing leading business, technological and research organizations, and institutions across Europe.
Lawler Sustainability is managing WP3 for SmartSPIN – Contractual Service Definition, and issuing a set of best practices guidelines to address the split incentives issues. The scope of work is to define the exact services that are to be included in the SmartSPIN business model, as well as the data and financial transactions between parties involved. As a final task, this WP aims at writing a contractual template of the offered service.