The deliverable D4.15: Limerick Energy Investment Models White Paper was submitted by OV in October 2023 with contributions from LCCC, MPOWER, GKinetic and IESRD. The executive summary of the deliverable is available below and the full deliverable is at the end for download:
“This document provides guidance to facilitate the development of Innovative Business Models and financing schemes for boosting investments in the DPEB/PED (Distributed Positive Energy Block/District) in Limerick and other cities who might want to replicate the experience.
The Report describes actions and policies that point to support the transition to more sustainable cities and community systems by the implementation of RES and EE measures, increasing the quality of life and the space where to live in. The work is the result of both theoretical and empirical experimentations and assessments, engagement and negotiations with involved stakeholders in the City of Limerick. Our approach envisages the application of a combination of private, public and financial mechanisms accessible at EU level.
Specifically, the document targets Energy Building renovations, Community Grid implementation and RES technologies (eg. Tidal Turbine Power Plant) installation within a PEB where Limerick City County Council (LCCC) plays a key role to drive and facilitate the co-creation process in cooperation with a large number of stakeholders. The Deliverable includes methodologies and actions, describes financial schemes and investment solutions to interconnect buildings (Blocks) in the Community Grid and energy trade market. The document also analyses challenges and opportunities for citizens organising and establishing new legal entities such as energy communities, business operators and investors to benefit from the infrastructural changes in buildings, community grid implementation aimed at creating DPEBs.
The Report describes how Innovative applied technologies and citizens engagement could contribute to increase the value of the PEB in terms of economic, environmental, social and governance impacts. Innovative Business & Investment models identified in the +CityxChange project in Limerick, as well as indicators, have identified and assessed the potential “value proposition” for most of the involved stakeholders in the PEB development.
Business Models designed and developed for Limerick PEB aimed to create value for the Energy Community. Value proposition in the PEB is represented by a series of products and services (trading platform, Tidal Turbine, etc) combined with environmental and social factors for more profit or social and environmental benefits for the REC2.
At the same time, value creation is to convince building owners to invest in Energy Efficiency measures for their own properties and how the REC could help and support Limerick in achieving energy transition goals and become self-sufficient.
The report shows, as partly theoretically described in Deliverable 2.4, that a Public Body (Municipality or local authority) plays a key role to foster Energy Efficiency measures and
increase the RES use towards the PEB implementation/
Moreover, stakeholders, citizens and market players’ engagement is crucial for PEB realisation and cooperation among public bodies, technology developers and citizens is fundamental to achieve energy and cost savings, energy production and productivity and related financial, economic, environmental and social profits. Investment solutions for PEB implementation are affected by other elements and variables and financial models are strongly influenced by regulatory barriers.
The first part of the work, developed by OV in cooperation with LCCC, IES, MPower and GKIN has collected info, energy data (energy consumption and production) and related financial “numbers” to start evaluating possible “value creation and proposition” of planned interventions. Following that, OV has provided and supported LCCC in the financial evaluation and feasibility of interventions, thus creating the basis for BMs sustainability. In some cases, financial-economic analyses have not provided “positive” results and impacts in terms of KPIs to develop adequate BMs – therefore OV had to investigate and propose alternative BMs and possible investment solutions assessed in cooperation with Mpower and LCCC.
The report tries to demonstrate possible investment and financial solutions to create the PEB notwithstanding the faced barriers and some key lessons have been learnt (see chapter 7 Lessons learnt, recommendations for replication & conclusions).
The Limerick experience can be defined as a guidebook to learn about successful and unsuccessful experiences for PEB implementation. In particular, results and outputs show how technical, administrative and governance aspects have influenced financial and economic decisions and investment solutions. The PEB project in Limerick runs towards the development of a full PED (Positive Energy District) and the establishment of a Renewable Energy Community but, as mentioned and detailed described in the forthcoming Deliverable 4.11 Limerick DPEB Implementation Guide 2, tangible deviations happened and subsequently adaptations have been necessary also for financial and investment terms related to PEB implementation.”