LAPSE:2023.9479
Published Article

LAPSE:2023.9479
Business Models for Active Buildings
February 27, 2023
Abstract
Active Buildings that allow users to adjust their demands on the grid to the needs of the energy system could greatly assist the transition to net zero, but will not be widely adopted unless the businesses involved can make money from doing so. We describe the construction, flexibility and information supply chains of activities needed to make these buildings work. Drawing on the results of an expert workshop, we set out four possible business models deserving further investigation. Developers may find it profitable to build or upgrade energy-efficient buildings with the monitoring and control equipment needed to adjust demand and energy storage as required, selling them soon after completion. Aggregators monitor the state of the building and communicate with the energy system to adjust the building’s demand while maintaining comfort levels, in return for suitable payments. Energy service companies may sell energy-as-a-service and own the equipment instead of a consumer who wishes to minimize their upfront costs, and the idea of an active, energy-efficient, building may be attractive to the tenants of the new group of all-inclusive rental companies, and hence to those companies. Our discussion shows that each is an evolution of an existing (successful) business model, but that further work will be needed to evaluate their profitability when applied to Active Buildings.
Active Buildings that allow users to adjust their demands on the grid to the needs of the energy system could greatly assist the transition to net zero, but will not be widely adopted unless the businesses involved can make money from doing so. We describe the construction, flexibility and information supply chains of activities needed to make these buildings work. Drawing on the results of an expert workshop, we set out four possible business models deserving further investigation. Developers may find it profitable to build or upgrade energy-efficient buildings with the monitoring and control equipment needed to adjust demand and energy storage as required, selling them soon after completion. Aggregators monitor the state of the building and communicate with the energy system to adjust the building’s demand while maintaining comfort levels, in return for suitable payments. Energy service companies may sell energy-as-a-service and own the equipment instead of a consumer who wishes to minimize their upfront costs, and the idea of an active, energy-efficient, building may be attractive to the tenants of the new group of all-inclusive rental companies, and hence to those companies. Our discussion shows that each is an evolution of an existing (successful) business model, but that further work will be needed to evaluate their profitability when applied to Active Buildings.
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Keywords
active buildings, business models, residential flexibility supply, residential smart grid
Subject
Suggested Citation
Elliott T, Geske J, Green R. Business Models for Active Buildings. (2023). LAPSE:2023.9479
Author Affiliations
Elliott T: Energy Systems Catapult, Birmingham B4 6BS, UK
Geske J: Imperial College Business School, London SW7 2AZ, UK
Green R: Imperial College Business School, London SW7 2AZ, UK [ORCID]
Geske J: Imperial College Business School, London SW7 2AZ, UK
Green R: Imperial College Business School, London SW7 2AZ, UK [ORCID]
Journal Name
Energies
Volume
15
Issue
19
First Page
7389
Year
2022
Publication Date
2022-10-08
ISSN
1996-1073
Version Comments
Original Submission
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PII: en15197389, Publication Type: Journal Article
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LAPSE:2023.9479
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https://doi.org/10.3390/en15197389
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Feb 27, 2023
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Feb 27, 2023
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