Demo Project 11: Invest

Enable the future: PEDs built on innovative business models for smart cities.

Vision (DP11) in a nutshell

DP11 has set-up an agreement structure for holistic and innovative new business models and investment models enabling citizens and other stakeholders to engage in PED development. DP11 shows how involved stakeholders can plan for and perform business in PEDs and local energy markets.

Problem addressed & specific objective

There is a significant need for a new paradigm when it comes to innovation for smart city business models. The interaction between resource efficiency, investment de-risking, and social acceptance are  fundamental issues that must be addressed in the context of business models for smart cities.

The +CityxChange project has prepared a scalable and replicable ready-to-market business model, highlighting the risk reduction potential to enable a sustainable investment pipeline. The models have been adapted to local conditions of the demonstration cities.

Related +CityxChange solutions

Sustainable Investment Pipeline: 

The Sustainable Investment Pipeline is a methodology for characterizing and benchmarking new business models for smart cities. Key performance indicators to measure the consistency of this methodology include demonstrable technologies capability and related cost-effectiveness, social acceptance and engagement, crowd-funding options, and innovative financial schemes.  Those parameters allow cities to design a generalized concept of business models applicable to smart cities beyond the current state of the art, also helping them to double-check their smart city interventions. The investment and business models developed, demonstrated, and verified target real estate companies, the DSO, the local energy market operator (LMO), and solution/technology providers necessary in order to enable a PEB/PED.

+CityxChange learnings:

  • Financial benefits and risks should be transferred and compensated among the different assets and stakeholders.
  • Total value creation is preferred to business as usual cost-revenue creation.
  • Successful replication does not imply copying the models in every detail, but rather means shaping and contextualising the most relevant investment & business elements to the local needs. 
  • Take into consideration not only financial and economic profitability but also environmental and social impacts.