How to finance the energy transition? CONCERTO as a test bed for business models
For buildings, financial support from CONCERTO represented typically a very low percentage of the total construction costs. The funding was 35 % of eligible costs. The support from CONCERTO was meant to cover part of the costs of additional measures to improve the energy efficiency of buildings above the national regulation. Indeed, it showed that for many projects this very small incentive was enough to stimulate other investment.
Despite some renewable energy and energy efficiency technologies verging on maturity, financing remains the big challenge if an EU-wide energy transition is to be brought about. Many energy technologies are still not sufficiently economically viable, due to their high up-front costs and low profits or low savings achieved. Others are only viable if looking at a long time period. For this reason, financing is a major issue in realising the energy transition.
The CONCERTO projects demonstrate on the one hand that it is necessary to provide financial support for renewable energy and energy efficiency projects and on the other hand how to mobilise private contributions – often that of private households. Current business models that hold the potential to overcome the barrier of up-front capital cost have been explored. The importance of collaborating with local and municipal energy companies has been highlighted and options of a new role in offering contracting solutions have been explored. Partner: www.najtelo.com