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LighthousesCitiesMarketIntroductionDeliverable6.2.

Preparedby:AlbertTapia,CarlosCarrasco,MiquelRodríguezPlanas&JoanEnricRicart,GrowSmarterWP6Team.

Contributors:GonzaloCabezasRuecas,CityofBarcelona;JuliaEgenolf,CityofCologne;MikaHakosalo,CityofStockholm.

Date:15December2017

Version:8

Email:mrodriguezp@iese.edu

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Contents

Summary..........................................................................................................................3

1. Introduction.............................................................................................................4

2. Methodology............................................................................................................6

3. BusinessModels.......................................................................................................8

WorkPackage2.LowEnergyDistricts.......................................................................11

Solution1:Lowenergydistricts.............................................................................13

Stockholm.Energyefficientrefurbishmentprojectinresidentialbuildings.............45

Solution2:Smartbuildinglogistics........................................................................57

Solution3:Smartenergy-savingtenants...............................................................63

Solution4:Smartlocalelectricitymanagement....................................................87

WorkPackage3.Integratedinfrastructures............................................................104

Solution5.SmartStreetLightning........................................................................106

Solution6.WasteHeatRecovery.........................................................................122

Solution7.SmartWasteCollection......................................................................130

Solution8.BigDataManagement........................................................................134

WorkPackage4.SustainableMobilitySolutions.....................................................148

Solution9.Sustainabledelivery...........................................................................149

Solution10.Smarttrafficmanagement...............................................................159

Solution11.Alternativefueldrivenvehiclesfordecarbonizingandbetterairquality..............................................................................................................................172

Solution12.Smartmobilitysolutions..................................................................191

4. AboutGrowSmarter.............................................................................................206

5. GrowSmarterprojectpartners.............................................................................206

Annex1.BusinessModelsandScalability....................................................................207

Whatisabusinessmodel?.......................................................................................207

DataandInformationforBusinessModelEvaluation.............................................208

EvaluationandAssessmentofBusinessModels......................................................209

Public-PrivatePartnerships......................................................................................211

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Summary

This document describes the business models (BM henceforth) related to all themeasures implemented in the lighthouse cities participating in the projectGrowSmarter.Intotal,53BMhavebeendescribed,distributedalong3workpackagesand12solutions.GrowSmarterleitmotiv,“Transformingcitiesforasmart,sustainableEurope”,obligesus to observe the BM from different points of view. The first one, is its ownsustainability,ifitisfeasiblefromafinancialpointofview.Althoughthefinancialdatahasnotbeenanalyzedyet(itwillbeinDeliverable6.3),wecanalreadyobservesomeconclusionsonthatpoint:especiallyonmeasuresfromWP2thefinancialsustainabilitywillbedeterminedby the financialdata,but for the restofmeasures,what ismoreimportantthantheeconomicdatais,inthecaseofmeasuresfromWP3,whatwillbetheBMfromthePublicSectorthatarehiringorusingthemeasures,and,forWP4,thecapacitytoevolvetheBMconsideringthepermanentchangesinthemobilityindustry.Otheraspectsobservedaretheirvaluecreation,theircapacitytocreateorimprovenewjobs,therelationwithdatamanagement,wheredocitizensstandregardingtheseBM,andfinally,theroleofCities’authoritiesregardingthem.

Ongeneralterms,wecanconsiderthattheBMshowninthefollowingpagesarewellfocusedoncreatinganaddedvaluerelatedtotheimprovementofacommunitymoreenvironmentallysustainable, thankstoenergy improvements,andthankstoabetterimprovement of public policies due to the knowledge obtained through a correctmanagementofdata.Themeasures implementedhave a positive impact into the jobmarket, as they areallowingthecapacityofworkerstoimprovetheirskills,reinforcingthemamongotherworkers.Thanks to Data Management, the potential success of BM is related to Citizens’decisions, and Local Public Sector appears as a prescriber and “incentivator” of theimplementationofthemeasuresratherthantobetheactortodevelopthemwiththeirownresources.

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1. IntroductionThisreportaimstoprovidespecificknowledgeaboutthebusinessmodelsrelatedtothemeasures being implemented in the GrowSmarter project, together with thepresentationofthesocio-economicandpoliticalcontextoftheLighthouseCities.Inaddition,itaimstoprovideinformationnotjustfortechnicalstakeholdersbutalsotothegeneralpublicandtheEuropeancitizenshipabouttheGrowSmarterprojectscopeandthepotentialscalabilityofsolutions.Byreadingthisreportonecanunderstandthemeasuresunderimplementation,theirbusinessmodels and their potential scalability from the business point of view. TheconclusionspresentedcanbebeneficialforrealimplementationofSmartCitysolutionsbehindthetypicalpilotprojects.TheSmartSolutionsbeingimplementedduringtheGrowSmarterprojectaredistributedamongthreethematicareas:

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However,northeSmartSolutionsorthemeasuresarebeingimplementedinisolationnorinclosedareas.Infact,theSmartSolutionsareintegratedsolutionswithmanycross-connectionstoeachotherasseeninthenextfigure:

Theoverallgoalsof theSmartSolutionsareto improvethequalityof lifeandat thesame time reduce negative environmental impacts. This will be measured usingindicatorssuchasreducedlocalpollutions,reducedgreenhousegasemissions,energysavingsandlocalenergyresourceutilization,aswellasjobcreation.TheSmartSolutionswillalsobevaluedfortheirpotentialtobescaleduplocallyandreplicatedinothercities.Forthepurposeofthisdocument,theBusinessModelshavebeenpresentedbygroupsofmeasures included inone solutionanddifferentiatedbetween themby IndustrialPartners and the kind of Business Model implemented (see Annex 1 for moreinformation).

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2. MethodologyTodefinetheBMbehindeachmeasurewewillusetheCANVASmethodology.TheBMCANVASisastrategicprocessthatbymeansofusingatemplateallowstodocumentexisting BM. It is a visual chartwith elements describing a firm's or product's valueproposition, infrastructure, customers, and finances. It assists firms in aligning theiractivitiesbyillustratingpotentialtrade-offs.

Since the beginning of the GrowSmarter project, IESE Business School has attendedseveralTechnicalmeetingsduringtheyears2015,2016and2017,inallthreelighthousecities,tounderstandthemeasuresandthebusinessmodelbehindthem.InthesetechnicalmeetingsIESEBusinessSchoolhasworktogetherwiththeIndustrialpartnerstoexplainthemandshowthemhowtofulfilltheirCanvasDocument.Thishasespecially done during the General Assembly organized in Cork, in May-June 2017,whereIESEorganizedaWorkshoptodiscusswithallthepartnersabouthowtofilloutaBMCanvasdocument.IESEpresentedafirstdraftofCanvasdocumentsformostofthemeasures,startingfromthis firstdraft, theexplanations givenduring theWorkshopandbyemail& through

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conferencecallsinthefollowingdays,theIndustrialPartnersshouldsendtoIESEtheCanvasdocumentsfortheirmeasures.Inthenextsections,arelationofalltheBusinessModelsrelatedtothemeasureswillbe presented. All the businessmodelwill be presented under the umbrella of theirWorkingPackage (WP2LowEnergyDistricts;WP3 Integrated Infrastructures;WP4SustainableUrbanMobility) and classified by solutions. The Businessmodelswill bedifferentiatedbetweenthemdependingonwhoistheIndustrialPartnersandthekindof business model that it’s implemented (B2B, B2C or PPP. See annex 1 for moreinformation).Moreover,someoftheBusinessmodelsthatwillbepresentedinnextsectionscouldincludemorethanonemeasure,as,thebusinessmodelscannotbeunderstoodwithouttheaggregationofdifferentmeasuresdevelopedby the industrialPartners. In thosecases,attheendoftheWorkingPackagesection,acommentregardingthissubjectwillbeincluded.

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3. BusinessModelsThis document describes the business models (BM henceforth) related to all themeasures implemented in the lighthouse cities participating in the projectGrowSmarter.Intotal,53BMhavebeendescribed,distributedalong3workpackagesand 12 solutions. For more statistical details about how the BM are related to thesolutionsandlighthousecites,seethetablebelow.

GrowSmarterleitmotiv,“Transformingcitiesforasmart,sustainableEurope”,obligesustoobserveaBMfromdifferentpointsofview.Thefirstone,isitsownsustainability,ifitisfeasiblefromafinancialpointofview.Althoughthefinancialdatahasnotbeenanalyzedyet(itwillbeinDeliverable6.3),wecanalreadyobservesomeconclusionsonthatpoint.Otheraspectsobservedare,theroleofCities’authoritiesregardingtheseBM,thecapacityofBMstocreateorimprovenewjobs,theirvaluecreation,therelationwithdatamanagement,andfinally,wheredocitizensstandregardingtheseBM.CreationofValueAclearcommoncharacteristicofallBMisthekindofvaluetheycreate.Allofthem,onadirectoranindirectmanner,arecreatingamoresustainablesociety,astheyincreaseenergy savings, reduce pollution and congestion, or improve public managementthroughinsightsfrommanagingcorrectlythedatacollected,thusallowingtoimplementmoreefficientpolicies.JobimpactTrying todetermine the impactonnumberof jobs created from theseBM isnotanobviousthink,anditcanbeaffectedfromdifferentcircumstancesnotallofthemrelatedtothemeasures.Therefore,inthisreportwedon’thaveenoughinformationtomakeconclusions about the impact on new jobs creation, but this subject will be deeply

Barcelona Cologne Stockholm TOTALSolution1 4 1 5 10Solution2 1 1Solution3 2 1 3 6Solution4 2 1 1 4WP2 8 3 10 21Solution5 2 2 2 6Solution6 1 1 2Solution7 1 1Solution8 3 2 1 6WP3 6 4 5 15Solution9 1 1 2Solution10 1 3 4Solution11 3 1 2 6Solution12 1 2 2 5WP4 6 3 8 17TOTAL 20 10 23 53

BusinessModelsrelatedtoSolutions&Cities

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studiedinDeliverable6.3.RegardingtheimpactofBMonimprovingtheskillsofworker,it can be said that this is a common property along all the BM. All the measurespresentedinGrowSmarterareimplementinginnovativetechnologiesthatthelearningsonhowtodevelop,install,maintainormanagethemrepresentclearlyanimprovementoftheskillsofthemanpowerusingthem.Thiswidespreadcharacteristicgivesastrongmessage to the European labormarket: in a Globalizedworld, where the chains ofproductionofanyproductcanbesettledinanyregionoftheworld,theimplementationof smart solutions is improving European industry and workers, giving them acompetitiveadvantageinfrontofotherworldwidecompetitors.DatamanagementDataisapermanentelementtodeterminetheimprovementofanexistingBM.WithSmartSolutions,thedatacollectedissohugethatthemanagementofBigDataallowsto customize BM for almost any customer. This reality, already observed in currentmaturemarkets,isacommontrendforGrowSmarter’smeasuresthathasanimplicationoncitizens’positionregardingtheBM.Citizens’positionIfwetakealookonwheredocitizensstandregardingtheBM,theinterestingthingisthatcitizenscanbeactivecustomersthankstothemeasuresproposed,andespeciallythankstotheuseofthedatarelatedtothesemeasures.Beinganactivecustomerisanoption,butisachangeofpointofviewontherelationbetweenbuyerandseller,wherewemovetoabidirectionalrelation,wherecustomershavethepowertodecidewhatkindofconsumptiontheywantandhowdoesthisaffecttotheenvironment.ThatputscitizensinthecenteroftheBusinessModel.FinancialsustainabilityOfcourse,thisnewkindofrelationshipbetweencitizensandcompaniesimpliesnewkinds of BM, and therefore a first question has to be ask regarding them. Are theyfinancially sustainable?Although theeconomicdatahasn’t beenanalyzed, on a firstoutlook we can differentiate the financial sustainability of BM basically fromWorkPackages.In Work Package 2, related to Energy Solutions in Buildings, the BM seem quitesustainablefromafinancialpointofview.Thekeyelementswillbewhowillbecollectingthemonetarizationoftheenergysavingsandifthetimeofthecontractwillbeenoughto recover the investment costs related to the implementation of the measures.Therefore, in thisWorkingPackage, theeconomicdatawillbecrucial toconfirmthefinancialsustainabilityoftheBM.InWork Package 3, related to integrated infrastructures, the BM stand because thePublic Sector is the main customer. Therefore, different models of Public-PrivatePartnershipscanbeusedtoimplementtheBM.Ofcourse,theeconomicdatawillbecrucial,buttheinterestingthingisthepositionofthePublicSectorinthoseBM.BesidethefactthatthePublicSectoristhemainbuyeroftheservicesrelatedtothemeasures,thedatarelatedtothemcanbeconsideredasagoodofpublicinterest,andtherefore,

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thePublicSectorwillbewhodefinestheoutcomestobereach,andwilldeterminetheeconomicresultsoftheindustrialpartner.InthiscaseaninterestingdimensiontobeconsideredwillbetheBMofthePublicSectorrelatedtothosemeasures(thatwillbeworkedonDeliverable6.4)besidestheBMoftheIndustrialPartner.InWorkPackage4,relatedtomobilitysolutions,thekeyelementistheevolutionofthebusinessmodels.Theyseemfinanciallysustainable,andeconomicdatawillbe,again,crucialtoconfirmit.Thepointisthatthesectorofmobilityislivingadeeprevolution,withnewsolutionseverywhere,asonthemicro-freightdistributionmarket,withstart-upsfromtheCollaborativeEconomysuchasDeliverooorGlovo,orontheevolutionofthe auto industry and its impact in the ACES factors (Autonomy, Connectivity,ElectrificationandSharedmobility)determiningthefutureofmobility.ThispermanentevolutionimpliesthatmostoftheBMimplementedinGrowSmartermightbeovercomeinthefollowingyearswithnewsolutionswithnewBM.Thatdoesn’tmeanthattheBMproposed are not interesting or sustainable, on the contrary, they are useful, tounderstandinwhichdirectionaretrendsmoving,soitisawayfortheIndustrialPartnerstoanticipateintoanotherBM.ThepositionofthePublicSectorLast,butnotleast,thepositionofthePublicsectorwillbedeterminingonthesuccessoftheBM.Insomecases,asseeninWP3,thePublicSectorwillbethemaincontractor,andthishappensinsomespecificmeasures.ButwhenwetalkaboutthePublicSectorwehavetoconsiderthedifferentlevelsoftheadministration.OntheNationallevel,andon theEuropean level, thePublic sectorwill be crucial to review the legislationandharmonizeittoguaranteethereplicationandescalationofthesuccessfulBM.Onthelocallevel,thePublicSectorwillbecrucialfortheimplementationofthemeasures,butnotspeciallybyhiringthem,butbyprescribingthem,askingtocompaniesworkingonproducts that generate positive externalities, to enhance them by implementingmeasuressuchastheGrowSmarterones.Ongeneralterms,wecanconsiderthattheBMshowninthefollowingpagesarewellfocusedoncreatinganaddedvaluerelatedtotheimprovementofacommunitymoreenvironmentallysustainable, thankstoenergy improvements,andthankstoabetterimprovement of public policies due to the knowledge obtained through a correctmanagementofdata.Themeasuresimplementedhaveapositiveimpactintothejobmarket,astheyareallowingthecapacityofworkerstoimprovetheirskills,reinforcingthemamongotherworkers.ThankstoDataManagement,thepotentialsuccessofBMis related to Citizens’ decisions, and Local Public Sector appears as a prescriber and“incentivator”oftheimplementationofthemeasures.Finally,thefinancialsustainabilityoftheBMwillbedeterminedbythefinancialdata,speciallyonmeasuresfromWP2,butfortherestofmeasures,whatismoreimportantthantheeconomicdatais,inthecaseofmeasuresfromWP3,whatwillbetheBMfromthePublicSectorthatarehiringorusingthemeasures,and,forWP4,thecapacitytoevolvetheBMconsideringthepermanentchangesinthemobilityindustry.

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Onthemethodologicallevel,alessonlearnedisthatthereisn’tasingularwaytoanalyzetheBMofSmartsolutions.TakingintoaccountthattheCanvasModelisacorrectwaytodefineBusinessModels,as it isaworldwiderecognizedmethodology,thepoint isthatiftheSmartSolutionsinvolvebigdatamanagementcollectedfrompublicspacesorthankstopublicassets,theassessmentoftheBMrelatedtothemeasurewillalsoneedtoconsiderthepointofviewofthemunicipalauthority.AndinsomemarketsinsidetheSmartsolutionscloud,thepermanentcapacityofinnovationandevolutionimpliesthattheassessmentwillhaveto take intoaccount thecapacityofadaptionof theBMtothesepermanentchanges.

WorkPackage2.LowEnergyDistricts

TheWorkPackage2includesfourgroupsofsmartsolutionstryingtoaddressthecurrentproblematicsregardingenergy,constructionandurbaninfrastructure.ThefirstsmartsolutionoftheWorkPackage2isnamedLowEnergyDistrictsandconsiststoimplement,indifferentresidentialandtertiarybuildings,someactiveandpassiveenergyefficiencymeasuresinordertoreduceenergyconsumptionandincreasethecomfortabilitylevelsfortenants,owners,managersandusers.ThesecondsolutionisnamedSmartBuildingLogistics,andisgoingtobeimplementedonlyforthecityofStockholm.Thesolutiontries to increase the productivity of the construction activities by offering a moreefficient method to deliver construction materials on site; while at the same time,increasing the quality of life and reducing the noise and pollution. The third smartsolution is named Smart Energy-Saving Tenants, andwith the sameobjective as thepreviousones,toincreasethequalityoflife,thesolutionconsistsinprovidethetoolstomanage and control energy consumptions in a smart and efficient way. Finally, thefourth smart solution of this Work Package is named Smart Local ElectricityManagement, and it consists to deploy renewable and sustainable self-consumptionenergysources,inordertomitigatetheenergydeficitofbuildingsandfomentasmartuseofenergy.Thisshouldhelptoreduceenergyconsumptions,contaminantemissionsandimprovetheoverallqualityoflifeofaneighborhood.ConsideringalltheprojectswithinWorkPackage2,itcanbeconcludedthatthemajorityofinvestmentscanbecategorizedasveryimportantintermsoftheamountofmoneyrequiredtodeliverthesolution,butatthesametime,thereturnoninvestment,donotseem to compensate theopportunity costs. For this reason, ensuring key resources,somethingobviousbutobligatory inanycase,andensuringastable legal frameworkthus reinforcing the need for Public-Private Partnerships, can be one of the mainconclusionsfortheWorkPackage2.Inaddition,Public-PrivatePartnershipscanbetheformulatoencouragetheparticipationofdifferententitiesandinstitutions,fromboth,publicandprivatesectors,inaproject.Sharingrisksandcapitalizingbenefits,intermsof profitability and return of the investments for the private sector, and positiveexternalitiesfromthepointofviewofthepublicinstitutions.Forexample,inthecityof

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Barcelona,arefurbishmentprojectofresidentialbuildings,isbeingpossiblethankstoapartnershipofthischaracteristics,assumingthemunicipalauthority,partofthefundingneededtodeploythesolution.Forthesmartsolution1,Public-Privatepartnershipscanbethesolutionwhenitcomestocompensatetheinitialinvestment,sincetheexpectedreturns on investment can be lower in more temperate climatologies of southernEuropethanthoseofthenorthernregionsofthecontinent,becausethelowerdemandofheat.

On the other hand, citieswithmoderate temperatures, can represent an importantmarket for this solutions to be implemented, where said solutions can be thoughprioritizingthermalcomfortasamethodtogetmorequalityoflifethananintegratedactuationforsavinglargeamountsofenergy(andimprovingthequalityoflifeaswell).

Publicfundingshouldserveasanacceleratorforimplementingthemeasures,butwecannotobserveastructuraldependencesfromthissourceofmoney;withoutdenyingthecurrentimportanceofpublicadministrations.Thisimportance,asmentioned,canbetranslated indefiningtheregulationand legal framework forbuildingretrofitting,energyefficiencymeasuresandotherrelatedpolicies.Theimportanceofpublicfundingcoulddependonthepricingmethodsandhowtheindustrialpartnersachievetocapturevalue in those business models involving energy efficiency measures. The revenuestreamsofamodel,usuallydetermineifaprojectisfinanciallyattractiveforaprivatecompany,however,thereisadifference,insomecases,betweenwhoisinvestingandwhoisgettingthemostimportantrevenues(intheformofafeeorsavings).Iftherearediscrepanciesbetweenwhoisinvestingandwhoiscapturingvalue,theparticipationofthepublicsectorcouldbehighlyrecommendable.

Acrucialcharacteristicofthesemeasuresisthehighlaborcreationcapacity,atleast,during the implementation of the measures involving construction and installationstages.Intermsofemployment,itcanbeconcludedthatintheshorttermtheamountofjobsgeneratedthankstotheprojectsanalyzedinthisdocument,aresignificant,notonlyduringtheconstructionlaborsbutalsoduringtheideationofthesolutionandtheresearch anddevelopment tasks for creating the technology appliedwithin thehighaddedvaluesolutionsoftheGrowSmarterproject.

That being said, afterwards the implementation of these measures, in a growingeconomiccontextandhavingdemonstratedthebenefitsoftheGrowSmartersolutions,the proliferation of projects implementing smart solutions similar to those of thebusinessmodelstreatedforthelighthousecities,couldensuretomaintainorincreasethecreationofemploymentwithlowaddedvalue(construction)andalsohighaddedvalue(researchanddevelopmentofnewtechnologies). Inaddition,those lowaddedvalue jobs can become a low-medium or even high added ones, since it could benecessary a certain degree of technical (or management and other) skills andspecialization when working in the practical implementation (construction andinstallation)ofthesesolutions.Hypothesisthatstillneedtobecontrastedandthatwillbesubjecttoanalysisforthedeliverable6.3.

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The paper of the public authority can be important when it comes to fund theimplementation of themeasures and defining the regulation relatedwith it. But itsimportanceisalsoexplainedbyitsroleasmediatororchannelbetweenusers(residents,managersandvisitors)andtheprivatepartnersimplementingthemeasures.Somethingimportant to point out because as a key activity, in building adequate customerrelationshipsforensuringagreatuserengagementandacceptance,publicauthoritiescanhavealottodo.

At the end of the day, the final beneficiaries of the works carried out during theimplementationofthemeasures,anditsconsequencesunderstoodasitsraisond'être,arethecitizens,eitherresidents(customers,owners,visitors…)andtheneighborhoodandcommunityasawhole(forbetterqualityofliveandcomfortability,lowerenergycosts,creationof jobs-lessunemployment-andotherlessevidentconsequencesbutpositiveexternalitieslikealesspollutedenvironment).

The implementation of these smart solutions, for some projects such as therefurbishment of an industrial site and a library, or those of tertiary and residentialbuildings,arebeingdonecombining, for the sameproject,different solutionsof theWorkPackage2,andtheSmartSolution6oftheWorkPackage3.AnexampleistheincorporationofaHomeEnergyManagementSystemsinaresidentialbuildingsubjectofrefurbishmenttasks involvingenergyefficiencymeasures;or itsconnectionwithaDistrictHeatingSystem.

Insummary,thesmartsolutionsrelatedwithLowEnergyDistricts’WorkPackage,couldlay the foundations for a new way to devise new buildings as well as futurerefurbishment and retrofitting projects in order to achieve a more sustainable andenergeticallyefficientenvironment.

Solution 1: Low energy districts

Thetechnologytobuildnewnearzero-energyhouseshasdevelopedstronglybutmostof Europe’s buildings are already built and are due for refurbishment. The buildingschosenbyGrowSmarterrepresentcommonbuildingtypesforEurope.Aspecialfocushasbeengiventothebuildingsfromthe1950-1970ies,beingthebuildingsthattodaycountformorethanonethirdofEurope’sbuildingstockandaccommodatemorethan200millionEuropeans.Growsmarter covers different climate conditions and different starting points andneeds, and will demonstrate economically sound solutions to reduce energyconsumption,increasetheuseofrenewableenergyandimprovedlivingconditionsinallareas,provingthereplicabilityofthesolutionsalloverEurope.Twotypesofbusinessmodels will be compared: public private partnership and Energy performancecontracting,bothtobefurtherdevelopedwithintheprojectasawayofovercomingthemarketobstaclesthesemodelsfacetoday.

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Residential and industrial buildings will be refurbished using both traditional andinnovative solutions, like extremely energy efficient windows, ventilation and highperformance sewage heat recovery, energy-certified water taps, air tightness andtechnical insulation.GrowSmarterwill renovate 100.000m2of residential living andtertiary spaces anddecrease theenergy consumption in the selectedbuildings from150-200kWh/m2toinmostcaseslessthan50kWh/m2.Thestandardsafterrenovationwillbeaffordableforcurrenttenantsthusenablethemtomovebacktotherenovatedapartments.Dependingonthekindofrefurbishment,currenttenantswillbeabletostayorwillbeofferedasubstituteapartmentforashorttime,allthetimehavingaccessto their apartment. In addition, Home Energy Management Systems and basicrefurbishmentwillbeofferedtoalltenantsintheBarcelonademositeataspecialrate,increasingthenumberofbuildingsrenovatedandtheenergysaved.Foreachlighthousecityitisnecessarytoincludesomecontextfocusingtheattentiononhowenvironmentalfactorcanaffectthebusinessmodelsandifthemethodologiestodeliver similar valuepropositions can change in this sense. Forexample it canbearguedthatinthecityofBarcelona, it ismoreimportanttoachievethermalcomfortthansavingsbut,intheotherhand,inthecityofStockholm,theprioritycanbemorefocusedinachievingsavings(optimizingthedistributionofheat);bothcitieswithsimilarvaluepropositionsandobjectives(improvingthequalityoflifeandtheenvironment).Otheraspectsshouldbepointedoutforeachcity,forinstance,inStockholmtheheatingisincludedintherentandthereforethebusinessmodelmustbedifferentinthissense.ConclusionsregardingtheBusinessModelsrelatedtosolution1

With the smart solution 1, the Grow Smarter project is focused in modernize andactualizeprivateandpublicbuildingswithdifferentpurposes (residential, tertiary) inorder to become more energy efficient. The potential of this measures to beimplementedinmanyotherbuildings,apartfromtheonestreatedwithinthisproject,isimmensesinceabigproportionofthebuildingsbuildinEurope,dateof1950-1970.Someofthemeasuresrequirethepartnershipbetweenpublicandprivatesector,whileother are completely fund by public or private institutions. As happens with thoseprojects basing its revenues on an ESCO contract, if this contract is longer than theoperationperiodawardedtotheenergycompany,someinefficienciescanappear.Thisinefficienciescanbedefinedbythelackofincentivesintermsofprofitabilitylowerthanopportunity costs for energy companies willing to refurbish buildings. Since theseprojectsarecapitalintensive,intermsoffinancialresourcesbutalsointechnology.Theoperationperiodshouldtakeintoaccount,ifpossibletheESCocontract,andviceversa,if this isnotthecase,an importantbarrierfortheenergycompanyto implementanESCoservicecouldappear,sincetheeconomicsavings(andprofits)normallyemergeattheendofsaidcontracts.Tomaintaintheproject’sfinancialattractiveness,fromtheenergycompanypointofview,whenthisisnothappening,theimplicationofthePublic

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Administrationcanbecrucial.Forthisreason,hasbeenconsideredasakeypartner,eventhoughitslevelofpresencecanbeirrelevantforsomeparticularcases.Inconclusion,wecanestimatecertaindependencywithpublicresourcesformeasuresincorporated within the smart solution 1 but not a structural one, as noted whenintroducing theWork Package 2. This relative dependency (not only considering thefundingaspectsbutalsoregulation)canchangewhenanalyzingthefinalresultsforeachproject. Finally, the costs of implementing these technologies could decrease in thefuture,requiringalowerfixedcostsofimplementation(entrycosts).Ifthishappens,theimplication of public administrations could be less important, erasing an importantdegreeofdependencybetweenPublicandPrivatesectors,sincethemarginalandtheoverallcostsofsaidtechnologiescouldbereducedinthemedium/longterm.

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Barcelona.Refurbishmentofprivatetertiarybuildings

Measures:1.0;1.1.9;1.1.10.1;1.1.10.2;1.1.11

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

1.Equipmentmanufacturers2.Engineering

firms3.Construction/installationfirms

4.PublicAdministrations

(PPP)

1.Energyauditingtoevaluateexisting

buildingsystemsandidentifypotentialimprovements.

2.Proposalofenergyconservation

measures,contractnegotiationandagreement.

3.Implementation.4.Exploitationandenergymanagement5.EnergySavingsMeasurement&Verification(M&V)

FortheCity/Community:reduceenergyconsumption

andincreaserenewablesproduction(if

renewableproductionisincluded).

AccomplishmentoftheEU/CityPolicies.Forbuildingowners:Decreaseinenergycosts,maintenancecostsandequipmentbreakdown(incaseof

replacingoldequipment),increaseinpropertyvalue,receiveturnkey

solutionwithenergymanagementandin

somecasesguaranteedenergysavings.Betterimage(SCR)forbuilding

customers.Avoidup-frontinvestmentby

thebuildingmanagers.

ForbuildingUsers/Costumers:insomecasesincreased

comfort.

Commercialphase:dedicatedpersonalassistance.A

commercialmanagerisassignedtothecustomerinthecommercialphase.

Construction/exploitationphase:Dedicatedpersonalassistance-interlocutorchangesatcontractsignatureandstartofworks,toa

construction/exploitationspecialist/EnergyManager,

usingBEMS.

Commercialbuilding

owners(hotels,sportscenters,

publicbuildings,etc.)Commercialbuilding

managersifdifferenttoowners(e.g.

publiclyownedsportscenters).

KeyResources Channels

1.Customer’sbuilding/installationstoberefurbished.2.Technologyandconstruction3.Platformforcustomermonitoringandanalysis4.Financialresourcesforinvestment5.Commercial,engineering&managementcapacity.

1.Directsalestonewcustomers2.Tendersforpublic

administrationorprivateentities.

3.Salesthroughequipmentmanufacturers/distributors/installers.GNFhassomeagreementswithmanufacturers/distributors

sothattheyrefertheircustomerstoGNFincasetheyareinterestedinobtainingtheequipmentthroughasanEnergy

Service.4.Salestoexistingcustomers,

e.g.electricity/gasretailcustomers,existingESCo

customers.CostStructure RevenueStreams

Investmentcosts(equipmentandconstruction),engineering,management

andcommercialcosts,maintenancecostsandenergycosts(ifincludedin

service).

Payment by the customer for Energy Services as agreed by contract.Generally, a fixed and/or variable fee for equipment, energy supply andmaintenance (if included), and/or a payment related to savings – seereference(1).TypicaloptionsincludepaymentsperkWhdelivered(EnergySupply Contract – ESC), or payment related to performance or savings(EnergyPerformanceContract–EPC).

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IndustrialPartner:GasNaturalFenosaShort Description: A series of individual projects implementing active and passiveenergyefficiencymeasures indifferent tertiarybuildings includingasportcenter,aneducationcenterandahotel.Themaingoalofthissolutionistoreducethecombinedenergyconsumptionoftherefurbishedbuildings,reduceenergycostsandimprovethesustainabilityofthebuildingsintermsofenvironmentandfutureconstructioncriteria.Escola Sert, in Barcelona, is the educational building subject to be refurbished byinstallingphotovoltaicpanelsandabuildingenergymanagementsystemtomonitorandcontroltheenergyefficiencyandtheusage levelsofenergy.Thesportscenter istheCEM Claror Cartagena, with similar measures being implemented during therefurbishmentworks,andfinally,thehotelH10(Catedral),alsoabuildingwithtertiaryactivitiesandwithsimilarbusinessmodelstothoseoftheprevioustwobuildings.Themeasuresimplemented,differfrombuildingtobuildingeventhoughweconsideredtodrawasinglebusinessmodelforallthreetertiarybuildingssincealltheprojectssharetruncal characteristics when it comes to value propositions and implementationprocedures.Thetechnicaldetailsofeachindividualmeasure,aredescribedonthetechnicalreportsoftheGrowSmarterproject.Onthisdocument,wewillrelateeachtypeofmeasurewith itsplaceof implementation, toguide the reader,withoutdelving into technicaldefinitionsthatarenotsubjectofthisdocument.Thatbeingpointedout,andstartingwiththepassiveenergyefficiencymeasures,inallbuildingsincorporated,anexternalthermal insulation composite system is going to be installed. Other measurecomprehends thechangeofwindowsat thehoteland theeducationcenter.At saidsportcenter,therearetwomeasures,oneabouttheinsulationofthepoolandotheraboutthermalzoningbetweenspaceswithdifferentdesigntemperatures.Anactivemeasureimplementedinthethreerefurbishmentprojects,istheinstallationofabuildingenergymanagementsystem.However,thereareindependentmeasuresforeachproject;forinstance,thehotelisreplacingitsexistingboilersforothersmoreefficient.Otherexamplesarethereplacementoftheexistingchillerforahighefficiencyheatpumpjointlywiththeimplementationofanaerothermalheatpumpsatthehotelandthesportcenter;thereplacementofthelightningsystemofthesportcenterandtheeducationcenter,andfinally,theoptimizationofthewaterdistributionloopandtheinstallationofdehumidifierwithheatrecoveryinthesportcenter’sswimmingpool.FortherefurbishmentprojectoftheEscolaSert,remarkthatithasbeendecidedtoinstallphotovoltaicpanelsintegratedintothebuilding’sfacade.CustomerSegments

Themeasures in these threedifferentbuildings, canbe replicated inotherbuildingssharing,somefundamentalcharacteristics.Sincethisconditioncanbesatisfiedbymanyotherbuildings,thepotentialcustomerscansupposeamassmarket.However,there

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areotherconditionstobesatisfied,startingbytheownershipormanagingauthoritiesofthebuildings,whichhavetohavethewillingnesstorefurbishthebuildingthefacilityinproperty.Thebuildingitself,hastoaccomplishsomerequirements,mainlytechnicaland demonstrate the possibility to increase its energy efficiency and environmentalsustainability.Thatbeingsaid,neighborcommunitiescanbeaperfecttarget,forenergycompanies,toaddressthiskindofservicesandrefurbishmentprojects.Otherimportantsegment are the public administrations, institutions with high environmentalconsciousnessowningpublicbuildingsandfacilitieswheremanyofthemeasurescanbeimplemented.ValuePropositions

Therearemanyvaluepropositionsthatemergefromthethreerefurbishmentprojectsanddefineitsbusinessmodel.Themainvaluepropositionisthereductionoftheenergyconsumptionand theenvironmental impact.Thanks to the implementationofactiveand passive energy efficiency measures, it is expected to reduce the energyconsumptionssignificantlyforallthreebuildings.Alsothankstothisreductionoftheconsumptionlevels,thecontaminantemissionsshouldbereducedaswell.Othervaluepropositions should be considered afterwards since its level of importance is moresubjective than the firstonebut importantnonetheless. For instance, improving thequality of life of the users and people utilizing the buildings in general. Theimplementationofisolationmaterials,betterlightningsystemsorabettercontrolofthethermal aspects of the building, should be traduced in a noticeable increase of thecomfortabilitylevel.This,inturn,couldimplyanincreaseofusers,whichisthesameassayingahigheroccupancylevelsforthehotel,ahighernumberofstudentsinthecaseof the Escola Sert, andan increaseof users in the caseof the sport center. For thisreason, this value proposition is linked with the value proposition of increase theprofitabilityof thebuildings fromthepointofviewof itsexploitation,managingandownership.Promotingsustainableeconomicdevelopment, isothervaluepropositioncloselylinkedwiththepreviousones.Increasetheattractivenessoftheservicesofferedin thebuildingby implementing smartenergyefficiencymeasures,notonlyhelps toboosttheeconomicprofitabilityofthebusinessesmanagingthebuildings,butalsotoincreasethemarketvalueofthebuildingandthemarketvisibilityhelpingtoreplicatesimilarbusinessmodelsbasedinefficientandsustainablebuildings.Channels

The channels used are direct, between thebuyer and the seller this is between theenergy companyand theownershipormanagingauthorityof thebuilding. To reachawareness,theenergycompanyconsiderstoaddressitsawarenesscampaignsfocusedin participate in public and private tenders, informing about what the company isofferingandthebenefitsofimplementingitssolutions.Otherchannelistheonethatcomprehends the sales made through equipment manufacturers, distributors orinstallers. In this regard, the energy company of Barcelona’s refurbishment projectsregarding these tertiary buildings, Gas Natural Fenosa, has some agreements with

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manufacturersanddistributors,sothattheycanrefertheircustomerstothecompanyincasetheyareinterestedinobtainingtheequipmentasanenergyservice.Finallyotherchannelistheonewherethesalesareaddressedtoexistingcustomers,withexistingESComodelsorelectricityandgasretailcustomerswithmoremainstreamcontracts.CustomerRelationships

The energy company distinguish between two main types of relationship, the oneoccurring during the commercial phase and other during the construction,implementationandexploitationphase.Duringthefirstone,acommercialmanagerisassignedtothecustomer,withdedicatedpersonalassistance. Intheseprojects,withsimilarbusinessmodelsbutwithdifferentcharacteristicsintermsoftypeofthebuildingandwithsomediscrepanciesregardingthemeasuresimplemented,seemsnecessarytoassignadedicatedcustomerassistanceforeachbuilding.Thesamehappensduringtheconstructionandposteriorexploitationphases.However thepersonneldedicated toassist the customer might change according to said phase and the needs of thecustomer.Forexample,inthecaseofthehotelH10,therelationbetweenGasNaturalFenosaincorporatesanenergyexpert,adaptingtheprojecttoconsiderenergyaspectsintherefurbishmentstage.Inthismodel,thefinalcustomer(inthiscasetheownershipsof thebuildings)havea single interlocutor,GasNatural Fenosa,whichmanagesandcoordinatesalltheagentsneededtoexecutethewholeprojects.RevenueStreams

TheprojectsaregoingtobebasedinanESComodel,thus,theinitialinvestmentisgoingtobeassumedbythecompanysellingthe implementationofthemeasuresforeachbuilding.InthecaseofBarcelona,thiscompanyisGasNaturalFenosa,whohasachieveddifferentcontractsforeachbuilding.Inthecaseofthesportcenter,duetheownershipofthebuilding,amunicipalinstitutionproperty,andtheprivateexploitationofit,thecontractconditionscandifferfromtheothertwobuildings.Ashasbeenpointedout,theinitialinvestmentisassumedbytheenergycompany,whichinturn,inexchange,receivesaperiodicfee.Thesavingareguaranteedbydefinitionbytherefurbishmentprojectinvolvingtheimplementationofactiveandpassiveenergyefficiencymeasures,and ideally, the saving achieved should be enough to compensate the investmentrequired to develop the implementation of the Grow Smarter solution and the feechargedbytheenergycompany.Themoredilatedintimeisdividedthisfee(somethingtoconsider intheagreementbetweenthe industrialandthecustomer), thebroaderscope for the refurbishment and implementation project, something that coulddeterminethefinancialsustainabilityoftheproject.KeyResources

The main resources for these three separate projects to become a reality can beclassifiedbetweenphysic,financial,intellectualandhumanones.Startingwiththefirst

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ones,thebuildingsorinstallationstoberefurbishedarethemainphysicalresource.Theequipmenttobeinstalledandconstructionmaterialsarealsoakeyresourcetobetakenintoaccount.Thefinancialresources,mainlyprovidedbytheESCocompanyinthecaseofBarcelonabutalsoinothercasewhenthepublicsectorcouldhaveapredominantrole in its regard; the intellectual resources, basically considering the technologies(hardwareandsoftware)andthelicensesandpatentstobeused,eitherpropertyoftheenergycompanyorfromathirdpartyone;andfinallythehumanresources,involvingcommercialandmanagingteams,engineersanypeoplerequiredtoworkintheproject.KeyActivities

Beforeimplementingthesolutionsandstartingtherefurbishmentplan,therearekeyactivitiesthathavetobepointedout.First,thetechnicalreports,analyzingthetechnicalviabilityoftheprojectanddecidingwhichmeasurescanbeandshouldbeimplementedoneachbuilding.Thenitisimportant,fromthepointofviewoftheESCocompany,toconvincetheownershiptoinvestinactionswithhigherpaybackthantheonestheyuseto accept for investing. To show them the cost of opportunity of not investing in arefurbishmentprojectlikethisone.Withotherwords,describingthepotentialbenefitsofintegratingpassiveandactiveenergyefficientmeasuresintotheirbuildings.KeyPartnerships

Thekeypartnersofthebusinessmodelarethedifferentagentsinvolvedintheprojects.Themain partners are the ESCo Company (the energy company participating is GasnaturalFenosa)andthecustomers,representedinthiscase,bythedifferentbusinessmanagingorowningthebuildings.Sincesomemeasuresareveryspecificforeachtypeofcustomer,inthecaseofthehotel,therearesomeproceduresthatcouldbereplicatedinotherhotels,forthesereason,whenimplementingthesemeasures,ownersandhotelindustrybrands,have tobeconsideredalwaysasakeypartner.The same for thosemeasures involving the refurbishment of a swimming pool, considering the sportfacilitiesasakeypartner.Otherpartners,besidesthecompanyprovidingtheservicesand theone requiring it, are thedifferent subcontractedcompaniesor collaboratingcompanies and people involved in the projects. Those are the technic specialists,engineers, architects,manufacturersanddistributorsofproducts for thegeneration,distribution, management and control of the thermal and electric energy and theimplementationofthesmartsolutions.CostStructure

Therearecoststhatappearduringtheconstructionandinstallationstages.Sincethesearethemostcapital-intensivestagesoftheproject,theimportanceoftheexpendituresgeneratedduringtheseperiods,intermsofabsolutefigures,canrepresentamajorpartofthetotalcoststructureofeachproject.Thecostsgeneratedbycommercialactivities,havealsotobeincluded.Thesamehappenswhenitcomestothemaintenanceofthe

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service.Fromthepointofviewoftheclient,theenergycosts(ifincludedinservice)arealsopartof thecoststructure,which in turncompensate theenergyprovider for itsservices.Therearecoststhatcouldappearbeforeorduringtheimplementationofthesolutions,thesecostscanbemoredifficulttodetermine,forexampledecisioncostsortransactioncosts, if theownershipof thebuildingor someprovidersgenerate someinefficienciesintermsoflackofunderstandingoraprobleminthesupplychain.

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Barcelona.Refurbishmentofprivateresidentialbuildings

IndustrialPartner:GasNaturalFenosa.Measures:1.0;1.1.10.1;1.1.10.2

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

1.Architects2.Engineers

3.Constructors4.Installer

5.Departments

ofthecompanyitself6.Communitysocialworkers7.Presidentoftheneighborcommunity8.Neighborcommunity

itself9.Investor10.Public

administration(urban

landscapedepartment

andresponsiblefor

subsidies)11.Public

administration,inthecaseofpublicprivatepartnership

(PPP)

1.Managingtheworksfromthebeginningoftheproject.2.Exhaustiveanddetailed

calculationofcosts.3.Choosingtheteamandcoordinatingthe

activities:architecture,engineering,constructor,installer,securitymanager,qualitymanager.4.Contracts

withstrictconditionsonquality,timingsandpenalties.5.

Participatoryprocesswiththecommunity.6.Constructionandcommissioning.7.Construction

andcommissioning

Fortheneighbors’communities:guaranteeofqualityofworks,bettercomfortandqualityoflifeathome,

guaranteeofenergysavings,guaranteeofenergyefficiency,onlyoneinterlocutorforeveryproblem,

increasingofthepropertyvalue.Forinvestors:reductionofinitial

investment(onlybuyingthebuilding),fractionatingoftheinvestmentin

refurbishment,guaranteeofqualityofworks,guaranteeofenergyefficiency,

onlyoneinterlocutorforeveryproblem,lesspainforthemanagementofneighbor’scommunity,increasingof

thepropertyvalue.Forpublicadministration:fractionatingofthe

investmentinrefurbishment,guaranteeofqualityofworks,

guaranteeofenergyefficiency,onlyoneinterlocutorforeveryproblem,lesspainforthemanagementof

neighbor’scommunity,increasingofthepropertyvalue.

OnebyOneMarketing&PublicityPublic

relations

Neighbors’communities

(BTC)or

Investors(BTB)or

Publicadministration(BTB-PPP)

KeyResources Channels(1)Fundstoinvest(2)Communitymanager

(3)Administrationmanagerforbureaucracymanagement(4)Technology,coordination

andmanagementcapability(5)Humanresources

(6)Monitoringplatformforcustomermonitoring,analysis

andloyalty.

DirectsalesAdvertisingcampaigndoortodoorAdvertisingcampaignviawebsite

AdvertisingcampaignviaTV,radio,letterbox,mailboxHomeEnergyManagementSystem:serviceofenergy

advisorforcustomerloyalty

Publicprocurement(incasethepublicadministrationwantstomakeapublicprocurementbeforetoexecuterefurbishmentworksinabuilding)

CostStructure RevenueStreamsFixedcosts(Negotiationofcontracts,project

development,legalizationprocess,construction,commissioning,salaries,technological

infrastructure,participatoryprocesswiththecommunity,monitoringandanalysis,

maintenance)

1.Energysupply,ifincludedincontract2.Paymentsbythecustomer(includeenergysupply,investment,

maintenance,interestsreturnoninvestment,andenergysavings,forafixedperiod).See(1)forreference).

3.Advertisingonthescaffold(ifpossible)Variablecosts(marketing,incidentalsanddelays,changeoflackofhumanresources,energycostif

supplied)

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Solutionconsisting in implementingpassiveandactiveenergyefficiencymeasures infour residential buildings in the city of Barcelona with the purpose of reducing theenergy costs and increase the environmental sustainability of the buildings. Thisbusiness model is applicable for a series of individual projects sharing some of themeasuresenglobedwithinthesmartsolution1oftheGrowSmarterproject.Admittingthe inconsistency of joining all the projects in a same business model, since themeasures implemented are not the same in many cases, we can identify points incommonforallthebuildings,achievingacommondenominatorwhenitcomestovaluepropositions,revenuestreamsandcustomersegments.CustomerSegments

Thetypeofmeasuresconsideredwiththissmartsolutionincludetheimplementationofpassiveenergyefficiencymeasuressuchastheinsulationofthefacade,changeofwindowsandremoveofthecoldbridgebetweenwindowsandfacade,installationofblindsandalso,theimplementationofactivemeasures,suchasthechangeofboilers,theconnectionwiththedistrictheatingsystem,theinstallationofefficientwatertapsoraHomeEnergyManagementsystem.Thesemeasures,orsomeofthem,cannotonlybeimplementedinaresidentialbuilding,butalsoinothertypeofbuildingsorfacilitieswith similar refurbishment necessities and energy policies. In summary the smartsolution1byGasNaturalcanbe implementedviabusiness tocustomer,business tobusiness or via public private partnership models (including residential and tertiarybuildings).However,asawhole,themaincustomersegmentfortheindustrialpartner(ESCo)incaseofreplicatethemodel(Public-Privatepartnership),aretheresidenttypeofbuildings.Valuepropositions

The implementation of passive energy efficiency measures aims to increase thecomfortability levels of the buildings by implementing insulation solutions. Weunderstand as a passive measure those involving facade insulation, roof insulation,replacingthewindowsandremovingthecoldbridgebetweenwindowsandthefacadeitselfandinstallationofblinds.Ontheotherhand,theimplementationofactiveenergyefficiency measures aims to reduce the consumption of energy thus reducing thecontaminant emissions by using more efficient systems and, if it is the case, usingrenewableenergy. Foractiveenergymeasures, theseprojects could incorporate thechangeofboilers,theconnectionwithadistrictheatingsystem,installationofefficientwatertapsandtheimplementationofahomeenergymanagementsystem(HEMS);allprovidedbyasingleindustrialpartner,inthecaseofBarcelona,GasNaturalFenosa.Forthem,asanenergyprovider,theimplementationofactiveandpassiveenergyefficiencysolutionshassupposedthepossibilitytotestanESComodelinthecityofBarcelonaandforresidentialbuildings.

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KeyResources

Thekeyresourcesoftheprojectsaredividedwithinfoursubgroupsofresources.Thephysic assets and resources include the buildingswhere the differentmeasures aregoing to be implemented. The equipment and materials needed to implement thesolutionsandotherphysicalassetsmandatorywhenitcomestorefurbishabuilding.The financial resources can also be categorized as key ones. This is because it isnecessarytocountonaninvestor(publicadministrations,energycompanies,orbankinginstitutions) to fund other key resources and, at the end, to make plausible theimplementation of the smart solutions. Said other key resources involve all humancapitalrequiredduringthedifferentstagesoftheimplementation,thisisthepreviousworks (technical reports or solving legal issues), construction and installation of themeasuresandfinally,monitor,maintenanceandverificationtasks.KeyPartners

The key partners of these projects are basically the public administrations and itsdepartments involved with each project. This definition includes the department inchargeofassigningthepublicfunds(publicsubsidies,incasetheprojectswerefundedinpartbythemunicipalityorinapublicprivatepartnershipconsideringotheraspectsbesides the funding) and the urban landscape department. Other partners are thecompanies, inmanycasessubcontracted,offeringconstructingservices,deliveringofmaterials,architects,engineers,installers,andminorinvestors.Fromtheperspectiveofthefinalbeneficiariesofthesmartsolutions,theneighborhoodsandtheresidentsofthebuildings,itisimportanttoconsiderthoseagentsrepresentedbythepresidentofthe neighbor community or the neighbor assembly. Returning with the publicadministrations,theseinstitutionsalsoserveasakeypartnerwhenitcomestostablishachannelbetweentheESCocompanyandtheresidents.KeyActivities

Key activities include the managing of the project since the beginning of it. Theelaborationoftechnicalstudiestodeterminetheviabilityoftherefurbishmentprojectfrom the technical point of view and also to elaborate an exhaustive and detailedcalculationofcostsstudy.Choosingtheteamandcoordinatingtheactivitiesinthefieldsof architecture, engineering, construction, installation, security and quality. Alsoimportant to draw a contract where timings, quality conditions and penalties aredetermined,foreliminatinganyuncertaintyandinefficiency ifanyproblememerges.Other key activities include the monitoring, managing and control of the energyconsumptions. In addition, from the point of view of the residents, is important tostablish participation processes with the communities where public administrationscouldparticipateaswell.CustomerRelationships

Customerrelationshipsaremainlyfocusedtosatisfytheresidentswhenanyproblemappearsbasicallyoccasionedbyalackofinformation(asymmetriesbetweenresidentsand energy providers), or for some other problem (as has been detailed later in its

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correspondingsection,thepublicadministrationscanbeafundamentalparttomakepossible a relationship between residents and ESCo companies). Relationships withcustomerscanbereachedalsousingaonebyonemethodologyorviaothertypeofpractices,suchasviacorporatewebsitesandpublicrelationshippersonnel.Revenuestreams

Besides the external funding of the project (flux of revenues coming from supra-governmentalEuropeaninstitutions),theinvestmentsarethoughttobecompensatedvia theenergybills (dependingonconsumptionandenergyprices) if included in thecontract,andotherpaymentsbythecustomers(tenantsorresidents).CostStructure

Thecostoftheinvestmentissharedbytheindustrialpartner,GasNaturalactingasanenergyprovidercompany,andpublicinstitutions(grantsfromthecouncilandEuropeanfunds). The fixed costs, since these are intensive capital projects, represents animportant part of the cost structure. Fixed costs, basically in equipment and inconstructionworks are themost important. Also, in this category, negotiation costs(decisionmakingcosts(eitherwiththecommunity/publicadministrationsorwiththeprovidersandtransactioncosts),managingandlegalconsultancycostsormaintenancecosts,representpartofthecoststructure.Forvariablecosts,tohighlighttheimportanceofthemarketingstrategyandthoseunexpectedcostsappearingduetoincidentsanddelaysoccasionedbyprovidersorlackofhumanresourcesinacertainmoment.Channel

ThemodelisbeingtestedinthecityofBarcelonafordifferentresidentialbuildings.Inthis regard, the industrial partner has achieved an agreement with the municipalauthorities of Barcelona, serving as a channel between Gas Natural Fenosa andneighbors and residents of the buildings. The channel provided via Ajuntament deBarcelona,servesasaveryefficienttoolforengagingtheresidentialbuildingownerswiththeprojectandatthesametime,thisPublic-Privatepartnershiphascreated, inparallel, a Task Force to improve the engagement process incorporating experts inrefurbishmentandinengagementproceduresandmethodsforencouragingresidentialownerstoparticipateintoPublic-Privaterefurbishmentprojects.Forreachingawareness,inthecaseofthemainindustrialpartnerinBarcelona,ithasspecifiedthatitsmaindirectchannelsarebasicallytheadvertisementcampaigns.(Door-to-door, via corporatewebsite or internet advertisements, campaigns via TV, radio,letterboxormailbox,andwhenitcomestothehomeenergymanagementsystem,aserviceofenergyadvisorforcustomerloyaltyhasbeenthoughifitisthecase.Finally,incasethepublicadministrationwantstomakeapublicprocurementbeforeexecutingtherefurbishmentworks,thepublicprocurementbecomesagreatchanneltoestablishacontractualagreementwithapublicinstitution.

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Barcelona.Refurbishmentofpublictertiarybuildings

KeyPartners KeyActivities ValuePropositions CustomerRelationships Customer

Segments

(1)Publicadministration

(BIMSA)(2)Business

privateinvestor(CISCO)

(3)Privatecompanies:constructioncompany,engineeringcompany,monitoringsystemprovider(4)Facilitymanagers

(5)BarcelonaEnergyAgency

(forthemonitoringofthebuilding)

IREC

Buildingworkscombinedwiththedevelopmentof

BuildingEnergyManagementSystemtooptimizeenergyand

waterconsumptionwhilereducingtheenergycostforcompaniesdoing

activitiesrelatedtoR&D.

(1)Todemonstratethepossibilitytobuildnetzero

energybuildings(NZEB)throughapublic–privatepartnershipbyretrofittinga

historicindustrialbuilding.

(2)TocreateaTechnologyHubinthedistrictbasedonlow-energysite(innovativeecosystem)

(1)Communicationswitharchitects

specializedonbuildingrefurbishment,

urbanismprofessionalstorenewindustrialareasofthecity

(2)CommunicationswithdifferentPublicadministrationbodies(3)GrowSmarter

impact.Demonstrationsite

(4)Workshopstoexplainbuilding

characteristicsonceoperative

(1)Publicadministration:a.Organizationswithinpublicadministration(BarcelonaInstituteofTechnology

foundationfortheHabitat(BITHABITAT))b.Districts(DistrictofPoblenou)

(2)Privatesector:a.Technologicalmultinationalcompanies(CISCO)

b.Start-upsandothercompanies

(3)Citizens

KeyResources Channels(1)Financialresources

fromBarcelonaMunicipality(annual

budget)(2)Technological

software:SmartEnergyManagementSystem

(3)Constructionmaterialsandequipment

(4)Personnelfrompublicadministrationtomanage

project(BIMSA)(5)SENTILOpublic

databasetoguaranteeanopenbuildingoperation's

follow-up(6)LEEDcertification

(1)thebuildingitselfwillbeusedasa

showroomforfuturedevelopments

(2)Screensinthebuildingfor

energy/comfortdatamonitoringdisplay(3)press,media

CostStructure RevenueStreamsCapex:(i)Hardware/softwarerelatedcosts:procurementofmaterialsand

equipment(ii)Engineeringcompany

(iii)StafffrompublicadministrationOpex:(i)Maintenanceandrepositioncosts

(ii)Monitoringandmaintenancestaff(iii)Energysupply

(1)IndirectbenefitssuchasfreerentalspaceforaperiodoftimefortheactorsinthePPPinexchangefortheinvestment

provided.(2)Energycostssavingsthankstoenergyefficiencymeasures.(3)Rentalsfromstart-upsandothercompaniesrentingoffices

intheretrofittedbuilding.

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Measures:1.0;1.1;1.1.6;1.1.9;1.1.10.1;1.1.10.2IndustrialPartners:IREC,CISCO&BarcelonaCityCouncilRehabilitation and integral refurbishment projects of two buildings following energyefficiencycriteriatoreduceenvironmentalimpact.TherenovationofCal’Alierseekstosatisfy the necessity for a Public-Private relation to establish a center or a hub fordeveloping, ideating, creating and fomenting the apparition of new startups or newideasrelatedwiththeSmartCitiescontext.Theotherrefurbishmentprojecttakesplacesinamunicipality-ownedprevioustextilefactoryanditwillbealibrary,alsowithanearlyzeronetenergybuildingNZEBcriterion.BothprojectsuseaPublic–PrivatePartnershipframeworkandtheyshouldbeareferencefor industrialandpublic-ownedbuilding’srefurbishmentsinthecity.CustomerSegments

Inthecaseoftheindustrialsite,thenecessityofthistypeofcollaboration(Public-Privatepartnerships),describesbothcustomersofthisproject.Fromthepublicside,thepublicinstitution is the municipality of Barcelona, and from the private side, CISCO atechnologyconglomeratespecializedintelecommunicationsinfrastructure. Inamoregeneralsense,thistypeofprojectcouldbeattractivefor:

Publicadministrations:a) TransformationofanoldindustrialsiteownedbytheCityCouncilintoacenter

ofinnovationandexcellenceonsmartcitiesusingprivatefinancialresources.b) Districttransformation,fromanoldindustrialdistricttoaninnovativeone.Privatesector:a) Corporate buildings: expected reduction on final energy consumption levels

comparedtoanaverage(withsimilarcharacteristics)corporatebuilding.b) Technological andmultinational companies: Availability of office space in an

innovativeenvironment.Thatbeingsaid,consideringtheactivitiesthatarebeingcarriedoutintothisbuilding,Cal’Alier;anothertypeofcustomersegmentscouldbeinterestedwiththisprojectbyweighingtheimportanceofeachpossiblevaluepropositionsinadifferentmanner.Forthisreason,nearlyeverytypeofbuildingcouldbesubjecttoasimilaraction.Buildings’owners,managersandneighborhoodcommunitiesarepotentialcustomers.Sincethesampleof buildings is gigantic,we could bedealingwith amassmarket in termsofcustomer segments. The samecouldbeargued for the refurbishmentprojectof thelibrary,implementingimportantmeasuresthatcouldbeofinterestforotherbuildings,includingresidentialones.Inthecaseofthelibrary,thesetypesofmeasurescanbeaddressedtoanycommercial,residentialortertiarybuildingownerandmanagerwhoaimstoincreasetheefficiencylevelsofabuildingamongotherkindofvaluepropositionsthatcouldattractthesetypesofcustomers.Thatbeingsaid,notethatthelibraryprojectisspecificallydesignedforahistoricalbuilding,beingpublicinstitutionssuchasthedistrictorthelibrarynetworkofthecity,theclients.

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Valuepropositions

There are two projects sharing similar value propositionswhen it comes to achieveenergeticandmonetary savingsand increase theenvironmental sustainabilityof thebuildings and also boosting the Public-Private partnerships in the field of energyefficiencyandrefurbishmentprojects.However, inparticular forCa l’Alier, since thisprojectisfundedthankstoaPublic-Privatepartnership,themainvaluepropositionisthe recovery by theMunicipality of an abandoned space and a historic building toestablishaninnovationcenterinthedistrictandfosterentrepreneurshipinthecity(byrenting out offices space in the building to start-ups). That being pointed out, asecondaryvaluepropositionistoestablishahubforthepromotionofactivitiesrelatedtoentrepreneurshipandSmartCities.Othervaluepropositionistoincreasetheindoorcomfortabilityofthebuildingfortheusers.Thebuildingwhereitwillbelocated,Cal’Alier,pretendstobeademonstrationofnearlyzeroemissionsbuilding,(nZEB).Tomeetthisproposal,aseriesofmeasuresrelatedwithincreasing the energy efficiency levels are included in the project, for instance, theconnection with Districlima. The consecution of a NZEB building could serve as anexampleforotherpotentiallyrefurbishablebuildings,publicorprivate.Inthissense,Cal’Alierhastobeconsideredasapilotproject.The library project is also based in a Public-Private partnership, where publicadministration acts as a funding partner and also as a client, in this regard, similarnecessitiesaregoingtobefulfilledbysimilarvaluepropositionsasCal’Alier,themostimportantoneistodemonstratethepossibilitytobuildahigh-performancebuildingforpublictertiaryusesbyretrofittingahistoricindustrialbuildingthusimplementingsomemeasures (activeandpassiveenergyefficiencyones) toachieve lowerconsumptionsandbetterenvironmentalsustainabilityiswhatthisprojectisallabout.Thetypologyofthebuildings(NZEB),shouldbetranslatedinadecreaseinenergycosts,maintenancecostsandequipmentbreakdown.Also,itshouldimplyanincreaseinpropertyvalueandtomeetwithenvironmentalregulations.Besidestheactualbuildings,wecanidentifyaninherentvaluepropositionthataffectstheir surroundings. Since these measures should improve the environmentalsustainabilityofabuilding,thenearerurbanareawhereitislocated,receivespositiveexternalities,benefitingthepeoplelivinginthesamearea.So,thereisaninherentvaluecapturebythecitywheretherefurbishmentprojectistakingplace.KeyActivities

InthecaseofCal’Alier,theprojectconsistsinabundleofkeyactivitiesthatcomprehendthe implementation ofmanymeasures. The list ofmeasures for this precise projectincludeactiveenergyefficiencyandpassiveenergyefficiencyrelatedmeasures,amongothertypeofactionssuchustherefurbishmentworksofCal’AlierfortheSmartlocalthermaldistrict.Cal’Alierisanoldindustrialbuildingthatwillbere-builtintoanearlynetzeroenergybuildingthankstobeingconnectedtotheexistingdistrictheatingand

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coolingnetworkcalledDistriclima.Theworksrelatedwiththismeasurearekeyactivitiesin that sense, for example, the technical study or the construction process. Whenspecifying the key activities for the library’s refurbishment project, the inherentactivitiesofthistypeofprojectcouldbedivided intotwomaingroups.Thefirstonecould be defined by those activities generated thanks to the ideation and auditingprocesseswhere themeasuresmight be implemented and also those activities thathappenduringtheconstructionprocessandinstallationofthemeasures.Asmentionedin other business models, a key transversal activity when we try to renovate andremodeldifferentaspectsofabuildingisthetechnicalreport;thetechnicalevaluationplan.Thiswillnecessarilyresultinaproposalslistofenergyconservationmeasures,asubsequentcontractnegotiationandanagreement(ifitisachieved).Thenextactivitiesaretheparticularonesofthisbusinessmodel,theonesthatarebeingconsideredtoimplementintolibraryLesCorts(BIMSA):façadeandgroundfloorinsulation;glazing:implementationofanefficientradiantfloorsystem;installationofanefficientlightingsystem and, regarding the active energy efficientmeasures, the installation of a PVsystemandaLEDandnaturallightningexploitation.(Theenergymanagementsystemisalsoincludedinthatcategory).Thesecondgroupofactivitiesarethosekeyactivitiesrelatedwiththeimplementationof a Building Energy Management System (BEMS). The following are the ones thatshould be considered into this group: For instance, defining the bestmechanism/process to choose the BEMS system that fits perfectly considering thebuilding’scharacteristics,andchoosingthebestproviderregardingthepreviousprocessthustheequipmentandinstallation.Normally,atenderingprocessshouldtakeplace,choosingbetweendifferentoptions.However,insomecasesthisprocesshasonlyoneoption.InthecaseofBibliotecaLesCorts,apublicbuilding,thechosenorganizationtomanagetheBEMSsystemisthemunicipality’sownenergeticagency.Finally,theactivitiesofmonitoring,managingandcontrollingenergyconsumptions;thesupervisionofthesystem,todetectanysecurityorhealthissuesthatshouldbesolved,and supervising the engineering / technical aspects of the installed system as well(maintenanceactivities).KeyPartners

ThetwomainpartnersinvolvedintherefurbishmentofCal’AlierfromthepointofviewofownershipandexploitationofthebuildingareAjuntamentdeBarcelonaandCISCOrespectively (the Barcelona Institute of Technology (BIT) will have its headquarterslocatedinCal’Alier.InthecaseofthelibraryLesCorts,alsoaPPP,thekeypartnersarethe public administration funding the investment through BIMSA, a municipalinstrumentformanaginginvestmentsinmunicipalinfrastructures,andtheownerofthebuilding,alsothemunicipalitythroughDistricteLesCorts.That being said, the implementation of all the measures incorporated within theseprojects,impliestheparticipationofthird-partyagentsandsubcontractedcompanies.

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Those are constructing and installing companies but technology providers. For themonitoring and control part, the company in charge to do this job has yet to bedeterminedbutisexpectedthatthemaintenancepersonnelwillbeincharge,learninghowtocontrolandmonitorthedatacollected.TheBarcelonaEnergyAgencywillreceivethedatacollectedaswellbutwithouthavingtocontrolthedata itself.Thesoftwareneededtocontrolandmonitorthedata,isprovidedbyaprivatecompany.KeyResources

Thebuildingsitselfarethemainresource,butbesidesthiskeyelement,forCal’Alieraprojectthisbig,hastocountwithstrongfinancialresources.Inthisrespect,thefinancialresourcescomefromthemunicipalityofBarcelona,assumingaround70percentofthetotalcostbeingCISCOtheprivatecompanypayingtheremainingcostsofconstructionandhabilitationofthebuildingtooperateproperly.Thefinancialresourcesareequallyimportantforthecaseofthelibrary,alsocountingonpublicadministrationstofundingit.

Otherresourcesthatshouldbepointedoutarethetechnologicalresources,forinstancethe software needed to implement the BEMS measure. Having a Smart EnergyManagementSystemallowsoptimizingconsumptionandforecastingthefuturebuildingenergyconsumption.ICT(InformationandCommunicationsTechnology)managementhelpssavingenergyandreducingcarbonemissionsbyshowcasingthedevelopmentandreplicationofsmartcities’solutionsforlowenergydistricts.

Consideringonlytheconstruction,theequipmentandmaterialsarecrucial.Thesamehappenswhenweconsidertheefficientlightingsystem,anefficientlightbulbsandLEDsaremandatory.Finally,highlight the importanceofhavingadequatepersonnel, fromthepublicadministrationtothesubcontractedcompanies inchargeoftheexecutionphaseoftheproject.Attheend,aLEEDcertificationshouldbeachieved,provingallthemeasurescarriedout.

CustomerRelationships

(1) Architects specialized on industrial refurbishment areas and professionalsspecializedinurbanism,workingjointlywiththecustomer,andadaptingeachstageoftheprojectandtheprocedurestothecustomer.Sincethemeasuresareappliedinadifferentmannerforeachbuilding(takingintoaccountthedifferentfactors including orientation, geography, and the city context), the industrialpartner implementing the measure, has to consider a dedicated customerrelationshipforeachcustomer.

(2) Relationshipswithpublicadministrations.(3) ConsideringtheGrowSmarterproject,anditsimpact,asachanneltopublicize

theproject.(4) Throughworkshopstodescribethebuildings’characteristicsonceoperative.

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Channels

Themainchannelsarethefacilitiesitselfwhichincorporatesalltheavailabletechnologytopromotetheconceptofnetzeroenergybuildings(NZEB).Toreachthat,thebuildingsusesadvancedinfrastructuresrelatedtoInformationandCommunicationTechnologies(ICT)andadvancedcontroloffacilities.BothbuildingscanbecomeashowroomaboutthepotentialofnewtechnologiesandICTonenergyconsumptionandthereforcarbonemissionsreduction.Thebuildingsitselfwillbeusedasshowroomsforfuturedevelopments.Screensinsidebothbuildings,displayingenergymonitoringdatawithinformationalpurposesaregoingtobeinstalled.Pressandmediaarealsoconsideredwhenlistingthechannelsused.Inthecaseofthe library, thechanneltowardspublicorganizations isbasedon internalmeetingsamongpublicbodiesofthecity.Andtowardstheusersofthelibrary,internettoolssuchase-mailsarethemainchannelwhenitcomestoinformthem.Theprojectsshowpracticallythepotentialofusingparticulartechnologiesinabuildingrefurbishment to achieve energy consumption reduction. That becomes the bestmarketingstrategytoshowthebenefitsofinstallingthosesolutionsandsellingthemtonew customers. These are benchmark projects in the field of public and privatecooperationthatcanbereplicatedinotherareasofthecityofBarcelonaandothercitiesaroundtheworld.Inthisregard,agoodcommunicationstrategycanbeusefultoreachthosecitieswillingtoregenerateadistrictorthosecompanieswillingtousethemostadvancedtechnologiestoreduceenergyconsumption.RevenueStreams

WhileCa l’Alierdonotgeneratedirectrevenuestreamsas itwillbedevotedtohostcompanies’ R + D activities, the PPP framework used for the refurbishment of thebuildinganditscomprehendedtechnologies,generateimportantbenefitsforboththepublicandtheprivatesector.Forthefirstactor,intheformofpositiveexternalities,forthecitizens(thebenefitsofhavingasmarthubandapubliclibrary)andforthecityitselfintermsofusingtheseprojectsasashowroomforfutureonesandthereductionofpollutiongeneratedbythebuildings,asdescribedbefore.Fromthepointofviewoftheprivatefirms,inthecaseofCal’Alier,therewillbepositivebenefits,reducingenergycostssopotentiallyincreasingtheprofits.Arevenuestreamforthemisthefreerentalobtained by the private stakeholder in the PPP in exchange of participating in theinvestment.ForthepublicstakeholderofthePPP,therewillberevenuesfromrentingoutofficeswithinthebuildingtostart-ups.CostsStructure

All the costs generated throughout the project of Ca l’Alier have to be considered.Mainly,themostimportantcostsarethefinancialones,thecostsofaninvestmenttorefurbishan industrialbuilding, itsconstruction(procurementofmaterials…)andthe

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equipment required tooperate thesite, including thesoftwareneeded tobecomeabuildingenergeticallymanagedandcontrolled.Itisnecessarytoreckononanimportantfinancialmuscletocompletethisorasimilarproject.Othercosts,arguablysecondaryones,are those relatedwith themanagingandcontrolof thebuilding, including thepersonnelandhumancapital,thecommercialcosts,themaintenanceandenergycosts(ifincluded).Also,thepaymentforthedistrictheatingandcooling(DHC)network.Thecostsstructureofthelibraryissimilartootherrefurbishmentprojectsincludedinthisdocument.Thereareinherentcostswhichappearsincetheideationoftheprojectandthetechnicalstudyofthebuildingwheresomemeasuresmaybeapplied.Thistypeofcosts,typicallyfixedones,alsoincludethecostsfornegotiatingthecontracts.Otherfixedcostswhenexecutingtheprojectaretheonesderivedfromtheconstructionandinstallationprocess.Thecostsoftheequipment,salaries,legalizationprocessand,sincethis is a public building with many kind of externalities and a local forum for theneighborhood,thecoststhatinevitablycouldappearduringtheparticipatoryprocesswiththecommunity.

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Barcelona.EfficientandSmartClimateShellandEquipmentRefurbishment

project(publicresidentialbuilding)

IndustrialPartners:IREC&BarcelonaCityCouncilMeasures:1.0;1.1.10.1Shortdescription:Themunicipalityimplementssimultaneouslytherequiredstructuralrenovation of a municipality-owned social housing building (Big Blue, Passeig SantaColoma),andtheenergyretrofittingofsuchbuilding(renovatesabuilding,viapassiveenergyefficiencymeasures)toachieveanincreaseofboththesecurityandtheoverallenergyefficiencyofthebuilding.Thisleadstoan,increaseoftheindoorcomfortandgeneratingmonetarysavingsfortheresidents(Socialhousing).

KeyPartners KeyActivitiesValue

PropositionsCustomer

RelationshipsCustomerSegments

(1)TheHousingAgencyofBarcelona(2)Tenantsassociation(3)Privatecompanies:constructioncompany,engineeringcompany,monitoring

systemprovider

(1)Façaderetrofittingworksandblindsreplacement

(2)Energyconsumptionandindoortemperature

monitoringof5dwellings

Retrofitthebuildingexternalinsulationand

replacetheblindstoprotectindoor

spacesfromweather

conditionsandincreasesecurityandcomfortwhilereducing

energyconsumptionandCO2emissionsin

thecity

(1)meetingsbetweenowner(Housing

AgencyofBarcelona)andrepresentativepersonsfromthetenantsassociation(2)meetingswithall

theinterestedneighbors

(1)Publicsector:

Otherpublichousing

administrationbodies

(2)Privatesector:

Tenantsofsocialhousing

KeyResources Channels

(1)PersonnelfromHousingAgencyofBarcelona

(2)SENTILOpublicdatabaseforbuildingoperation's

follow-up(3)FinancialresourcesfromBarcelonaMunicipality

(annualbudget)

(1)Thebuildingitselfwillbeusedasa

showroomforfuturedevelopments.Dissemination

activities(2)Phonecalls,e-mail,concertedinterviews,signs/postersonthe

buildingCostStructure RevenueStreams

(1)Hardwarerelatedcosts:materialsanddevicesfortheinsulationandthemonitoring

equipment(2)Personnelrelatedcost:installationofthe

materialsandmonitoringsystemsandpersonnelforcommunicationwithresidents

(1)Rentalspaidbythetenants(2)Theretrofittingworksshouldleadtoareductioninthehouseholds'electricityandnaturalgasconsumption(thisisnotarevenuefortheBarcelonaMunicipalitybutforthe

tenants)(3)Non-monetaryrevenue:increasethermalcomfortand

reducenoiseforthetenants

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CustomerSegments

Due to the nature of the project, the measures applied on this building could beimplementedinotherbuildingswiththesametypeofrefurbishmentneeds.Theprojectcould be attractive to some building’s owners andmanagerswilling to increase theefficiencylevelsoftheirbuildingsintermsofsustainabilityandenergyconsumption.ValuePropositions

Themainvaluepropositionconsistsinincreasingtheindoorcomfortofthetenantsinthebuildingwhilereducingtheenergycostsforthem.Thisisdonethroughincreasingthelevelsofefficiencybyimplementingsomepassiveenergyefficiencymeasures(i.e.thermalinsulationofthefaçadeandreplacementofblinds).Thisvaluepropositionhasanimportancethatcouldexplainthereasonofaninvestmentlikethat,sincethetypeofresidentsinthebuildingcomefromalow-incomestratumofthecity.

Othervaluepropositionsthatshouldbementioned,andappearaspositiveexternalities,are the increasing of property’s value and the benefits in terms of less pollutiongeneratedbythebuildingfavoringtheneighborhoodandthecommunitieslivinginthesurroundings.KeyActivities

Comparedwithotherprojectsincorporatedinthisdocument,BigBlue’s(PasseigSantaColoma)isolationofthefacadeandtheblindsreplacement,representsaminorprojectintermsofnumberofmeasuresimplementedbutabiggeroneintermsofnumberofdwellings affected, over 200. All of these measures are considered passive energyefficiency measures. The monitoring of the energy consumption and indoortemperaturein5dwellingsisalsoakeyactivitytobeabletofollow-uptheimpactoftheenergyretrofittingmeasure.Todrawarightpathforthesemeasurestobeimplemented,akeyactivityofaprojectlikethat,isthetechnicalevaluation.Ifthattechnicalevaluationplancertifiesandagreesthatsuchmeasuresarethecorrectones,andthatcanbeimplemented,apublicbiddingprocess,hastobeconsideredasaKeyactivity.Ifthereisanagreementbetweentheparts involved in the project, the construction / installing phase and maintenanceactivitiesaretheonesthatwillfollow.KeyPartners

The Barcelona city council through its Social Housing Institute is the publicadministration in charge of funding the project. Besides the contracting party, thecompanies contracted to execute the project, are also key partners, these are theconstructorcompanyinchargeofinstallingthethermalinsulationofthefaçadeandthecompanyreplacingtheblinds.Themonitoringequipmentinstallerisalsoakeypartner.

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Obviously,mentiononeofthemostimportantparticipantsinthisproject,whichistheneighbor’scommunity,thepeoplewhoresideinthebuilding.

CustomerRelationships

PatronatMunicipal de l’Habitatge (Social Housing Institute) and the municipality ofBarcelona schedules meetings with the tenants association and all the interestedneighbors of the building and also has a “business-client relationship” with thecompaniesinvolvedintheimplementationofthemeasures.KeyResources

Financial Resources (via public institutions); Intellectual Resources: patents andtechnologies used to implement the measures; human resources: form the peopleworking in the construction to the peoplemanaging or investigating the technologyneeded to be implemented in the project. Also, important to take into account thephysicalassetssuchasthebuilding,theconstructionmaterials,theequipment,andthelogisticsinfrastructure,instancethestoragespaceofsaidmaterial.

Channels

Thechannelsusedtogainmorecustomersforaprojectwiththesecharacteristics,willdependonthecompanywillingtoselltheservicesregardingtheimplementationofthemeasures.Typically,foracompanyspecializedinthoseactivities,awaytointeractwiththecustomers,isdirectlysellingtonewcustomers.Othermethodologyarethepublictendersincaseofpublicadministrations/publicproperties,orprivateonesincaseofprivateentities.Salesthroughequipmentmanufacturers/distributorssothattheyrefertheircustomerstotheindustrialcompanyincasetheyareinterestedintheinstallationoftheisolatingmaterialsontothefaçadeorreplacingtheblinds.

RevenueStreams

Thepartsadmitted that financially,as it is thought, thisprojecthasnosustainabilityfromthepointofviewofthe investor,northeconstructioncompany.However, it issustained by the positive social externalities justifying the public investment that isbeingmadebytheadministrations.Inthisregard,theprojectcouldreachsustainability,alsofortheinstitutioninvestinginthosemeasures,byincreasingtherentalpricesforliving in the building. As has been highlighted, the tenants will capture the savingsachieved thanks to the facade renewal and blinds replacement, assuming, the citycouncil, all thecostsof it. The tenantswill continuepaying the sameamount to thebuilding owner, but capturing the value created, seeing how the energy costs are

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reducedthankstotheinvestmentmadebyothers(MunicipalityofBarcelonainthecaseoftheBigBlueproject).

Additionally,thereexistanotherbusinessmodelsofPublic-Privatepartnershipthatcanincentivize energy refurbishment in the residential sector in which the EnergyServiceCompany(ESCO)guaranteestheenergysavingsandassumesthemaintenancecosts.InthiscasetheownersofthebuildingpaytheinvestmentinmonthlyinstallmentsduringtheESCOcontract.

CostStructure

Themaincostsarethosederivedfromtheinstallationandconstructingprocess.Notethatthe installationcosts,also includethecostsoftheequipment. Inthissense,theinvestment costs are very important.Other costs, suchasmaintaining themeasuresimplementedarenoteworthy.AspecificcostforthismeasureisthepersonnelcostoftheSocialHousingInstituteforthecommunicationwithresidents(criticalfactorforthiskindofmeasure).

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Cologne.Climateshellrefurbishment(LowEnergyDistricts)

Measure:1.1IndustrialPartners:DewogShortdescription:Buildingrefurbishmentprojectconsistingoftheimplementationofenergyefficiencymeasureswiththeaimofreducingenergycostsandtheharmfulimpactontheenvironment.By refurbishing the building (thermal insulation measures), and installing new andconnecteddevicesincludingaself-regulatingdecentralizedenergymanagementsystem(tomonitor the electricity and heat production), itwill be possible tomake amoreefficientenergyusereducinggreenhouseemissionsandtheconsumptionofprimaryenergy.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships

CustomerSegments

Industrialpartners:DewogTechnicalpartner:RheinEnergie

Technologyproviders(DEWOG),virtualpowerplant

(RheinEnergie),privatesectorandbuildingowners;publicauthoritiestoincentivize

collaboration.Cologne:DEWOG,providingthebuildingsandRheinEnergieprovidingthe

technology

decentralizedmanagement

system(installedineachbuilding)tomonitortheelectricityandheatproductionthroughthe

sensorsavailableinthebuilding

isolationofthebuilding,to

reduceenergyconsumption

Owners’communitiesorcompanies.Thecommunicationbetweenindustrypartnersandthetenantsstartedin

ordertoprovidethepossibilityofco-creationwiththe

tenants.

(1)Privatesector:

a.Housingbuildings

b.Corporatebuildings

c.Mallsandstores

(2)Publicadministration:a.Internaluse:Publicbuildings(CityCouncilsbuildings,

publiclibraries,hospitals,etc.)b.Externaluse:publichousing

KeyResources Channels

Constructionmaterials;financialresources,human

resources,technology

realestatecompanies,architectsandconstructioncompanies

CostStructure RevenueStreams- Hardwarerelatedcosts:façade,roofand

ceilinginsulationproducts,tripleglazedwindows,highefficiencycirculationpumps,liftswithenergyrecovery,LEDlamps,buildingdevices(PLC),and

photovoltaicpanels

Modernizetheinfrastructureimpliesareductioninenergycosts,generatingsavings.Theenergyproviderchargesaperiodicfeeforimplementingthemeasure,

plusthecostofenergy.- Softwarerelatedcosts:self-regulatingdecentralizedenergymanagementsystemforeach

building

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Customersegments

• Privatesector:a. Housingbuildingsb. Corporatebuildingsc. Mallsandstores

• Publicadministration:a. Internal use: Public buildings (City Councils buildings, public libraries,

hospitals,etc.)b. Externaluse:publichousing

Anykindofbuildingfulfillingthetechnicalrequirementsforbeingsubjectofthistypeofrefurbishmentprojects

Valuepropositions

Thevaluepropositionoftheprojectistoimprovetheisolationofthebuilding,makeamoreefficientuseofenergy,andinstalldevicestoreduceenergyconsumptionthatwilllead toa reduction in theenergy consumptionpotentially reducingenergybills. Themonitoring of the electricity and heat production will additionally add value to theserviceprovidedbytheenergycompany.Additionalvaluecanbeobtainedatsociallevelwiththereductionofgreenhousegasemissions.Channels

Thesolutionisofferedbyrealestatecompanies(innewdevelopments)orarchitectsand construction companies (in brownfield projects) as an added value to finalcustomers (either households or companies) to reduce their energy bills, improveservice,increasewellbeingoradoptanenvironmentallyfriendlyapproachintheenergyuse.Customerrelationship

Businessmodelshouldbeorientedattargetingrealestatecompanies,constructionorarchitectstooffersolutionstotheircostumers(finalusers)suchasowners’communitiesorcompanies.Thetenantscanrequesttheownerstoapplymeasurestomakeamoreefficientuseoftheenergy,leadingtoareductionintheenergyuse.Revenuestreams

Thesolutionshouldleadtoareductioninenergycostsforfinalusers.Thesavingsforcustomersderivedfromthereductionintheenergyconsumptionshouldpay-offfortheadditionalcostthefinalcustomersshouldfacetomodernizetheinfrastructure.Theup-front payment can be however burdensome for some households that without thesupportoftheadministrationwillnotbeabletofaceit.Publicadministrationsshouldencouragefinalcustomerstoimplementthesemeasuresthroughsubventionstoreachtheclimateobjectivesthatshouldbefulfilledbefore2025.

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Keyresources

Thekeyelementsoftheprojectcanbeseparatedintwoareas:(1) Improvementsinbuildinginsulationwillreducetheenergywastebykeepingthe

energywithinthebuildings(2) Modernize the energetic infrastructures by using LED lights and photovoltaic

panelsanduseadecentralizedmanagementsystemtomakethemostefficientuseoftheenergy.

Thefirstoneproposestoovercomethisproblemtheimprovementintheinsulationofthe building (facade, basement ceiling and roof) and installation of triple glazedwindows.Thesecondkeyresourceistheusethemostadvancetechnologytoefficientlyuse the energy (LED lighting ormodern –heat pumps) and a system tomonitor theelectricityandheatproductionthatwillbeconnectedtothe“virtualpowerplant”oftheutility.Keyactivities

Thekeyactivitiesarerelatedtothedecentralizedmanagementsystem(installedineachbuilding)tomonitortheelectricityandheatproductionthroughthesensorsavailableinthe building. For this reason, the previous implementation to a centralized heatingsysteminthebuildings,isakeyactivity,becauseisessentialtoenablethemeasurementofheatproductionforeachbuilding.Thedataisobtainedwiththeprogrammablelogiccontroller (PLC) installed in the building, which collects data using sensors with thepurposeofusingenergyaccordingtotherequirements.Keypartnerships

Theprojectrequiresthecollaborationofdifferentstakeholders:technologyproviders(RheinEnergie) and the buildings (DEWOG); also public authorities to incentivizecollaborationbetweenprivate sector. In this regard, Public-Private partnerships areconvenient.Coststructure

Hardware related costs: façade, roof and ceiling insulation products, triple glazedwindows,highefficiencycirculationpumps;liftswithenergyrecoverytechnology,LEDlamps,heatpumps;PLCdevicesandphotovoltaicpanels.External costs (Software related costs -RheinEnergy-): self-regulating decentralizedenergymanagementsystemforeachbuilding.Implementation(subcontractedcompanies)andpersonnelcosts(salaries).

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Stockholm.ASmartVentilationControl

Measure:1.1.6Mainindustrialpartner:L&TThismeasureconsistsinimplementingaventilationcontrolsystemwithefficientheatrecoveryforachieveamorestableenvironmentintermsofcomfortability.

CustomerSegments

Thepotentialcustomerscouldbetheresidentswithsomedifficultiesinkeepingtheheatinside their residence. For customerswith some insulatingdeficiencies andneed forrefurbishingthebuildingortheapartment.Thismeasurecanbeincludedinsomemajorrefurbishmentprojects,whichinvolvetheimplementationofothermeasures,includingasmartventilationcontrol.Butweconsidertodescribeitseparatelybecauseitcanbeimplementedapartfromothermeasuresonplaceswiththisveryspecificneeds.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships CustomerSegments

Companiesthatarespecializedininstallingmeters

1.Detectionofseparategarageventilation

systems2.InvestigateneedforcomplementarycontrolsuchasPPM,moisture,presenceonexisting

system.3.Installationofnew

optionalcontrolsystemaddedtotheexisting

one.

Fortheowner:Lessenergy

usedforheatingofgarage

(kitchen…otherroomscanbe

studied)

Fortenants:Morestableclimate

Forusall:LessCO2footprint

OnebyOneMarketing&PublicityPublic

Procurement

1.Everyexistinggaragewitha

separateventilationsystem

2.Ownedbyallkindofpropertyowner

KeyResources Channels1.Humanresourcesfor

installation.2.Softwareand

hardwareforadaptivecontrol

B2BB2C

CostStructure RevenueStreamsFixedCosts:

1.Installationcostcoveredbyhouseowner.

2.SupervisionnormallyNOTneeded.Variablecost:

1.Installationcost2.Marketingandcommunicationto

personsmakingdecision

Costreductioninenergyusedgoesdirectlytopropertyowner.

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Keyactivities

Technicalstudiesfordeterminingtheweakpointsintermsofheatlossandfromwheretheheatshouldbeextracted,andtherefore,howtoimplementthemeasure.Otherkeyactivitiesincludetheagreementwiththedifferentpartnersandtheresidents.ValueProposition

For theowner:Lessenergyused forheatingofgarage (kitchen…other roomscanbestudied).Fortenants:Morestableclimate.Forusall:LessCO2footprint.KeyResources

FinancialResourcesHumanresourcesPhysical/intellectualresources:equipmentandtechnology(licensesandpatents).KeyPartners

Theenergyproviderforofferingthissolutiontoitscustomers.Thetechnologyprovider,forsellingthistechnologytotheenergyprovider(incaseitisnotthesamecompany),the residents, the company in charge of installing the measure and/or technicallyanalyzingthebuilding.CustomerRelationship

Directly to the customer, providing specialized attention, the same as the valuepropositiondelivered.Channels

It can be addressed from business to Business companies. For instance, a companyofferingasmartventilationcontroltoenergycompaniesfortheirrespectivecustomers.Orontheotherhand,frombusinesstofinalcustomers,forexampleanenergycompanyoffering the implementation of energy efficiencymeasures, including this one, to abuilding.Finally,thetechnologyproviderofferingitdirectlytoacustomer.RevenueStreams

Costreductioninusedenergygoesdirectlytopropertyowner.Coststructure

FixedCosts: 1.Installationcostcoveredbyhouseowner.2.SupervisionnormallyNOTneeded.

Variablecost:1.Installationcost2. Marketing and communication to people involved in the making-

decisionprocessofimplementingthemeasure.

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Stockholm.AnEnergyQualityAssurance

Industrialpartners:L&TMeasures:1.1.7Short description: By appointing and Energy Coordinator to follow the buildingconstructionorrefurbishment,energysavingscanbeachievedbyavoidingerrorsanddelaysresultofstaffchanges.Errorsduringplanningandconstructioncanresultin10-20%extraenergyconsumption.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

EnergyCoordinator,theProjectManager(Constructioncompany)

Detailedplanabouttheexpectedenergysavingsandkeyareastotackletheenergywasting;acommonworkingschedulewiththe

projectmanagerandtheenergycoordinator

ToofferanadvisoryservicetothesiteProject

Managertoensurethattherighttechniquesareusedduringthebuildingprocess

constructioncompaniesandengineeringcompanies Privatesector:

a.Constructioncompanies

b.Engineeringcompanies

KeyResources Channelsaprofessionalandexperiencedfirminenergyconsumptions ProjectManager

&theHubgrade-EnergySaving

CentrecommunicationplanbetweenthefirmandtheProjectManager

CostStructure RevenueStreams

Personnelrelatedcosts:EnergyCoordinatorsalary

doesnotdirectlygeneraterevenuestreams,butitshouldallowforareductionaround10–20%oftheenergyconsumption

costsduringtheconstructionperiod Customersegments

Privatesector:• Constructioncompanies• Engineeringcompanies

Energysavingsthatreduceconstructioncostsandincreasecompanies’competitivenessoralternativelyincreasefirms’margins.Valuepropositions

ThevaluepropositionofthesolutionisofferinganadvisoryservicetothesiteProjectManagertoensurethattherighttechniquesareusedduringthebuildingprocessfromitsplanningtoitsimplementationphasefocusingonenergysavings.

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Channels

TheEnergyCoordinatorshouldworkcloselywiththeProjectManageralongthebuildingprocess to implement the energy savingmeasures alongside theHubgrade - EnergySavingCentreensuringthatthecalculatedenergyusematchesactualconsumption.Customerrelationship

Thesolutionshouldtargetconstructioncompaniesandengineeringcompaniesthatcancapturethevaluederivedfromenergysavingsduringtheconstructionprocess.Revenuestreams

Thesolutionproposeddoesnotdirectlygeneraterevenuestreamsbutitshouldallowfor a reduction around 10 – 20 % of the energy consumption costs during theconstructionperiodthatcanbecapturedbytheconstructingfirm.Keyresources

Thekeyissueisappointingasenergyadvisoraprofessionalandexperiencedfirmthatbringstotheprojectinnovativeideastominimizetheenergyconsumptions.Itisalsorequired a good communication plan with the Project Manager to successfullycoordinate themeasures to reduceenergy consumptionwhile not interfering in theconstructionprocesspath.Keyactivities

Theinitialstageshouldincludeadetailedplanabouttheexpectedenergysavingsduringthe process and the key areas to tackle the problemof energywasting. The EnergyCoordinatorshouldalsoensurethatinstalledproductsareindividuallytestedinordertoensurethattheyareoperatingefficiently.ProjectManagerandEnergyCoordinatorshouldhaveafluentcommunicationwithahighdegreeofinformationsharinganddesignacommonworkingschedule.Keypartnerships

The task of the Energy Coordinator consists on working together with the ProjectManagertoreducethewasteofenergythatshouldfinallyresultincostsavingsfortheconstruction company. A good design of the incentives structure should result in asuccessfulcooperation.Coststructure

Personnel related costs: Energy Coordinator salary that includes planning andmonitoring.

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PRICING:EnergyCoordinatorfeedshouldhaveafixedpayandvariablepayaccordingtotheenergysavingsachievedintheproject.

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Stockholm.Energyefficientrefurbishmentprojectinresidentialbuildings

Measure:1.1(1.1.3;1.1.4;1.1.5)IndustrialPartner:SkanskaProjectconsistinginimplementingaseriesofenergyefficiencymeasuresandahomeenergymanagementsystemtoincreasetheoverallconsumptionlevelsofthebuildings

(VallaTorg)andcapturesavingsforthepeoplelivinginit.

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

Constructioncompanies;technologyproviders,

energysuppliers,managingandmonitoringcompanies,

residents,publicadministrations

(Dependingonthemeasure).Ina

nutshell:previousmeasures,

constructionworks,coordination,

measurementandmonitor;getting

approvalsfromthetenantsanddwelling

owners.

Forthepeoplelivinginthebuilding:

lowerenergycosts,morecomfortabilityFortheowner:high

propertyvalueForthe

environment:lowercontaminantemissions.Forthecity:

implementationofmeasures,whichbenefitsthe

neighborhood,andcouldserveasamodelforfuture

projects.Fortheindustrial

partners:promotingtheirvalue

propositionsandmakingthemfinancially

sustainableinthelongterm(iftheywerenotalready)

Insomecases,usingcorporatewebpages,

staffexclusivelydedicatedtothe

client.Forinstance:involvingacustomerrepresentativetothe

residents.//B2BandB2C

Nospecialcustomersegments,but

alwaystopeople(owners/managers/

municipalities/companies)willing

toimplementenergyefficiencymeasures,andimprovethe

sustainabilitylevelsofabuilding.Alsodifferentactorswithsocialandenvironmentalawareness.

KeyResources ChannelsFinancialResources:importantfixedcosts

becausetheequipmentrequiredandtheconstruction

works;HumanResources:important

amountofjobscreatedduringtheimplementation.Physicalresources:

materialandequipment.Intellectual

resources:highaddedvalueinsomemeasureswith

importantamountoftechnologyfactor.

Dependingonthemeasureandtheindustrialpartner

(somemeasuresaredeliveredthroughtheimplementationof

differenttechnologies,othersbyofferingfacetofaceservices…).In

somecases,corporatewebpagesserveasachannel

duringtheimplementation

stagesorinanafter-salesituation.

CostStructure RevenueStreams

Priortheimplementation:technicalstudiesandsalariesDuringtheimplementation:constructioncostsandimplementation(equipment+technology+salaries)

Aftertheimplementation:maintenancecostsandmonitoringservices

Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthe

pointofviewofthebuilding’susers(residents…)therearenoincrementalcostsbecauseoftheproject.Onthecontrary,the

userscapturethesavings.

46

Industrialpartner: Skanska (theproject is linkedwith the constructionconsolidationcentre(solution2)andwiththeHubgrade(L&T)andtheActivehouse(Fortum)(solution3).CustomerSegments

ThemeasuresimplementedinVallaTorgBuildingscanbeappliedinotherbuildingsnotnecessarily of the residential type. However, there are some specific measures,particularlythehomeenergymanagementsystem,whichfitsinabetterinbuildingofthe residential type (condominiums) since the building is strictly divided in differentunits or habitable departments where common areas are reduced to only theindispensableones.Thatbeingsaid,similarsystemscanbeapplied,maybenotfocusinginasinglehabitableunitbutmorewiththebuildingasawhole.ThebuildingenergymanagementssystemsorBEMSarethesetypeofsolutions.The selling companiesoffering these services canbeeitherenergy companies, to itscustomers,orconstructioncompanies,technologicalcompaniesofferingitssolutionstoenergycompaniesorotherindustriesthatcoulddemandthistypeofmeasures.Valueproposition

Forthepeoplelivinginthebuilding:lowerenergycosts,morecomfortability.Fortheowner:highpropertyvalueFortheenvironment:lowercontaminantemissions.Forthecity:implementationofmeasures,whichbenefitstheneighborhood,andcouldserveasamodelforfutureprojects.For the industrial partners: promoting their value propositions and making themfinancially sustainable in the long term (if they were not already). The measure 2(described in the following section) should help to increase their efficiency whenimplementingthemeasures.KeyActivities

One of themost important key activities of a project of this typology, as has beenhighlightedinotherbusinessmodels,isthemandatorytechnicalanalysisforensuringwhatarethemostoptimalmeasurestoimplementandwhatisthebestwayfordoingit.Forinstance,somepreviousunrecognizedheatlosseshaveproventocomefromaninefficienthotwatercirculation.Theimplementationitself,theconstructionworks,andtheinstallationproceduresarealso an obvious key activity. The same applies when it comes to ensure the funds,necessarytopermittoacquiretheequipmentfortheprojectandpayingsalaries.

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KeyPartners

Keypartnersaretheconstructioncompanies,theenergycompanies,thesubcontractedcompanies,technologyproviders,engineers,andthedifferentparticipantsofthecity;neighborsandtheresidents.KeyResources

FinancialResourcesHuman Resources: during all the phases of implementation (study, installation,measurements).Physicalandintellectualresources:equipmentandtechnologyCustomerRelationships

Insomecases,usingcorporatewebpages,staffexclusivelydedicatedtotheclient.Forinstance:involvingacustomerrepresentativetotheresidents.Channels

Dependingon themeasureand the industrialpartner (somemeasuresaredeliveredthroughtheimplementationofdifferenttechnologies,othersbyofferingfacetofaceservices…). In some cases, corporate webpages serve as a channel during theimplementationstagesorinanafter-salesituation.RevenueStreams

Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthepointofviewofthebuilding’susers(residents…)there are no incremental costs because of the project. On the contrary, the userscapturethesavings.CostStructure

Priortheimplementation:technicalstudiesandsalaries.During the implementation: construction costs and implementation (equipment +technology+salaries).Aftertheimplementation:maintenancecostsandmonitoringservices.

48

Stockholm. Slakthusarea refurbishment plan including air tightness tests.

(Tertiary-cityownedbuildings)

Measures:1.1(1.1.5,1.1.8)Projectdefinedbytheimplementationofactiveandpassiveenergyefficiencymeasures,an energy saving center and other sub-measures with the purpose of reducing theconsumptionsandcostsandatthesametimelowerthecontaminantemissionsfromthebuilding.ThisprojectwillservetodescribetheStockholm’sGrowSmartermeasureregardingtheAirtightnessmeasurementtests.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships CustomerSegments

BuildingcompanyArchitects

Energyconsultant

Puttingseparatefloor,separateapartmentsorthewholehouseundercontrolledoverpressureinordertodetectanyunwantedleakageinwall,aroundwindows

etc.

Forthebuildingcompany:To

achievetheoreticalvaluesforenergy

consumption

Fortheowner:Lessenergyusedforheatingof

building.

Fortenants:Lowerenergycost,more

stableindoorclimate

Forusall:LessCO2footprint

OnebyOneMarketing&Publicity

1.Everyexistingbuildingusingitsown

centralheatingsystem

2.Ownedbyallkindofpropertyowner

KeyResources Channels

1.Equipmenttothoroughlysealselected

space.2.Equipmenttoachieve

overpressure.3.Thermographiccameratovisualizetemperature

drop,e.g.aroundwindows

B2BB2C

CostStructure RevenueStreams

FixedCosts:1.Technicalequipment

Variablecost:1.Installationcostdependingonselected

area.2.Salaries&Laborcost

3.Marketingandcommunication

1.Moreefficientinspectionafterfinishingbuildingprocess

2.Fulfillmentoftheoreticalvalues

3.Costreductionin€(kWhandkW)goesdirecttopropertyowner.

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CustomerSegments

Thepotentialcustomersarethedifferentownershipswillingtoimplementthistypeofmeasurestoitsbuildingsordwellings.ThesolutionregardingtheimplementationofPV,isthoughtforrefurbishmentprojectsofentirebuildings,sopotentialcustomersshouldrepresentabuildingorawholecommunity.Inparticular,forStockholm,thesolutionisgoingtobeimplementedinpublicownedbuildings,firsttwohistoriconesandlater,duetobudgetrestrictions,toothertwobuildingsmeetingthetechnicalrequirementsforbeing refurbished. The type of ownership or purpose of the building should notdeterminewhether a building represents a potential customer or not, however, theimplementationofthissolutioninthislighthousecity,isdesignedunderaPublic-Privatepartnershipframework.KeyActivities

Tomakepreviousstudiesofthearea.(ThiswasprovedtobeimportanttodeterminethattherewasenoughwasteheatfromthenearbySportsarenaandaDataCentertoheatupthetwobuildingsinvolvedinthisproject.Otherpreviousstudiesarerequiredtodeterminethebestenergyefficiencymeasuresforreachingtheenergytargetsofthebuildings,consideringthatthefirstonestoberefurbishedweretwohistoricbuildingswith cultural historic value. For the actual refurbishment projects (Slakthus 8 andKylhuset)thosepreviousstudieshavetobedonetoo.Analyzingeachbuildingaspartofitssurroundingsareimportant.Themethodologythatwillbeusedforimplementingthesolutionconsistsininstallingexhaustairheatpumpsforrecoveringtheheatintheventilationexhaustair.Fordoingthat, somemechanical exhaust air ventilation and a central heating system for thebuildingtousetherecoveredenergyforheatingpurposes,includingthedomestichotwater.Otherimplementationsarealsoconsideredforthefinaltwooptionsconsideredtorefurbish, for this reason,otherkeyactivitieshavetobementioned,ensuring thesupply chain, determining the construction and implementationmethods and otheractivitiesrelatedwithinstallingactiveandpassiveenergyefficiencymeasures.ValuePropositions

Toachievecertainlevelsofenergyefficiencywhilerespectingthehistoricvalueofthebuildings when the measure was first contemplated for two 1910’s buildings.Afterwards,toprovideasolutiontotheimplementationofanadaptivecontrolsystemforheatingandventilationpurposes,heatrecoveryintheventilationsystem,utilizetheexcessofheatfromthekitchentoheathotwater(sub-measuresrelatedwiththeairtightnesscontrol),andothermeasuressuchasinstallationofPVwithbatterystorageandLEDlightingsystems.

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KeyPartners

Fortum, construction companies, energy companies, Real EstateAdministration, ThecityofStockholm,subcontractedcompaniesandproviders.KeyResources

Financialresources:forfundingtheProjectHumanResources: thenecessaryworking force for installing thesolution,engineers,managersandotherhumancapitalinvolveddirectlyorindirectly.Materialresources/equipment:implementingtheneededinfrastructure.Channels

Abouttheairtightnessmeasure,toachieveanawarenesslevelaboutwhatthismeasureisallabout,itisnecessarytostablishdifferenttypeofchannels,intermsofmarketingwithpotentialcustomers.Afundamentalpartoftheimplementation,istheevaluation,fordeterminingtheeffectsandifitiseconomicallysustainableaccordingtothesavingsachieved.Takingthisintoaccount,theimplementationitselfneedstobeeasytoinstall,formakingtheproject,moreattractiveandreduceitsopportunitycosts.Asmentionedabove,theprojectwillneedpreviousinstallations.ForotherimportantmeasuresimplementedinSlakthusarea,wereferthelectortootherBusinessmodelsoftheWorkPackage2,specificallytheBrfÅrstakrönetbuildingandtheenergysavingcenterprojectandmeasure.CustomerRelationships

Theimplementationoftheairtightnessmeasurealongwiththeothermeasures, isaproject,specificallydesignedforthebuildingswearetreatinghere.Forimplementingthesamemeasureintootherbuildings,theprojectshouldbeadjustedtothoseotherbuildings since the characteristics and circumstances change more or less on eachbuilding.Inthisregard,thecustomerrelationshiphastobeadjustedaccordingtotheindividual ownership of each building, with dedicated personal answering andcollaboratingwiththecustomer.StreamRevenues

Therevenuescomefromthesavingsgeneratedthankstotheimplementationofthesemeasures.Therefurbishmentmeasures,inaggregatedterms,haveapay-backtimesofaround 10 years, so at the end of this estimated period, the investment should becompensated;entirelyjustifyingtheinvestmentfromthefinancialpointofview.

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CostStructure

FixedCosts:1.Technicalequipment,costsofdevelopingthetechnology

Variablecost:1.Installationcostdependingonselectedarea.2.Salaries&Laborcost3.Marketingandcommunication

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Stockholm.BrfÅrstakrönetresidentialbuildings

Measures:1.1Mainindustrialpartner:L&TFMABImplementationofenergyefficiencymeasuresforoptimizeenergyconsumptionsandlowerthecontaminantemissionsofaprivatecondominium.

ThisprojectincludestheimplementationofdifferenttypeofmeasuresincludedintheWork Package 2 of the GrowSmarter Project. These measures, relate energy

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

Constructioncompanies;technologyproviders,energy

suppliers,managingandmonitoringcompanies,residents,public

administrations

(Dependingonthemeasure).Inanutshell:previousmeasures,constructionworks,

coordination,measurementand

monitor

Forthepeoplelivinginthebuilding:

lowerenergycosts,morecomfortabilityFortheowner:high

propertyvalueForthe

environment:lowercontaminantemissions.Forthecity:

implementationofmeasures,whichbenefitsthe

neighborhood,andcouldserveasamodelforfuture

projects.Fortheindustrial

partners:promotingtheirvalue

propositionsandmakingthemfinancially

sustainableinthelongterm(iftheywerenotalready)

Insomecases,usingcorporatewebpages,

staffexclusivelydedicatedtothe

client.Forinstance:involvingacustomerrepresentativetothe

residents.//B2BandB2C

Nospecialcustomersegments,but

alwaystopeople(owners/managers/

municipalities/companies)willing

toimplementenergyefficiencymeasures,andimprovethe

sustainabilitylevelsofabuilding.Also

differentactorswithsocialand

environmentalawareness.

KeyResources Channels

FinancialResources:importantfixedcostsbecausetheequipment

requiredandtheconstructionworks;HumanResources:importantamountofjobscreatedduringthe

implementation.Physicalresources:

materialandequipment.Intellectualresources:highaddedvalueinsomemeasureswithimportantamountoftechnologyfactor.

Dependingonthemeasureandtheindustrialpartner

(somemeasuresaredeliveredthroughtheimplementationof

differenttechnologies,othersbyofferingfacetofaceservices…).In

somecases,corporatewebpagesserveasachannelduringtheimplementation

stagesorinanafter-salesituation.

CostStructure RevenueStreams

Priortheimplementation:technicalstudiesandsalariesDuringtheimplementation:constructioncostsandimplementation(equipment+technology+salaries)

Aftertheimplementation:maintenancecostsandmonitoringservices.

Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthe

pointofviewofthebuilding’susers(residents…)therearenoincrementalcostsbecauseoftheproject.Onthecontrary,the

userscapturethesavings.

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optimizationandbuildings through the implementationofactiveandpassiveenergyefficiencymeasures,efficientlightingsystems,aVirtualPowerPlant(EnergyHub)andaSmartHomeSystem.Keyactivities

Thekeyactivitiesconsiderallabsolutelynecessaryactivities,fortheprojecttobedone.Thisdefinitionalsoincludestheactivitiespriortotheproject,withoutwhichitwouldnotbepossible to implementall themeasures into thebuildingsweare studying intheselines.Thatbeing said,because thisprojecthas to satisfydifferent customer segmentsandmanynecessitieswithmanyvaluepropositions, the listof keyactivities is very long.Next,wewilllistallthekeyactivities,groupingthemaccordingtothemeasuresthatthisprojectincorporates.Startingwiththeactiveandpassiveenergymeasures,themostimportantactivitiesaretheimplementationofsensorsinsidethebuildinginanumberofapartmentsandalsooutsidethebuildingforweatherforecasting.The key activities involvedwithin the solution 3 can be divided between the ActiveHouseproject (Fortum) and the Energy saving center (adaptive temperature controlsystem by L&T). Starting with the first sub-measure, the key activities consider theimplementation of different type of devices, including water and electricitymeters,sensors,tabletsanddimmers.Continuing with the second sub-measure, for the implementation of the adaptivetemperaturecontrolsystem,it isrequiredtostudyindetailthecharacteristicsofthebuilding. Because this sub-measure is also implemented in other projects, themethodologyofimplementationcouldvarysubstantiallydependingonthestructureofeachbuilding.Inthissense,itisimportanttoanalyzetechnicallythestructuralelementsofthecondominium.TheenergysavingcenterusestheHubgradesolution,whichisatechnologicalinnovationprovidedbyoneoftheGrowSmarter’spartnersinStockholm,L&T.ThekeyactivitiesinvolvingthemeasureoftheVirtualPowerPlant(balancingdemandwithsupply), theactivities regarding the technicalevaluationandstudieshave tobedoneinordertoimplementthismeasure.Sincethismeasureisheavilyrelatedwiththeimplementationofothermeasure,theimplementationofPVonthebuilding,thekeyactivities about saidmeasure, are also key activities of themeasure4.1. TheVirtualPowerPlanttriestoadjustandoptimizetheenergygenerationofthesePVinstallations.Basically,itconsistsinimplementingtheEnergyHubsystem.OtherkeyactivityincludedintheprojectisthemeasureaboutEnergyQualityassuranceoftheGrowSmarterproject(L&T),whichinturnfulfillsthecoordinationnecessitiesofeveryproject, includingBRFÅrstakrönet,andservesasavalueproposition for some

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industrial partners. In the case of Stockholm projects, the industrial partner whichprovidestheenergycoordinatorservices,isL&T(werefertomeasure“EnergyQualityAssurance”).Asamatteroffact,themeasure“energysavingcenter”isstrictlyrelatedwith thismeasure,bothmeasure’svaluepropositionsconsist inmanageandcontroldifferentaspectsoftheproject.Customersegments

Thepotentialcustomersthatcouldfitinaprojectlikethisone,withalargeamountofmeasures are all those buildings (more precisely, the ownership and the peoplemanagingthefacilities),aimingto improvethe levelsofefficiency intermsofenergyconsumption,environment,financialresourcesandalsotobeafutureproofbuildingfromthepointofviewofregulations.Potentialrefurbishablebuildingsshouldmatchthetechnical requirements for having implemented the solutions that this projectrepresents.KeyResources

TheimportanceofthematerialequipmentrequiredforimplementingandinstallingtheVPPviatheEnergyHub,iscrucial.Fordoingit,isnecessaryaPowerModule,a3x5A(3.5kW) three phase, scalable bi-directional power inverter. The amount oftechnologicalresourcesisveryhigh,notonlyintermsofhardware,butalsointermsofsoftware.AsystemcalledACEisnecessarytoequalizethecurrent.Ashasbeenmentioned, the implementationof thevirtualpowerplant, followothermeasure,theinstallationofphotovoltaicpanels.Forthisreason,weconsiderthesePVsystemsanditsbatteries,askeyresources,withoutwhichitwouldnotbepossibletoimplementtheVirtualPowerPlantForactiveandpassiveenergymeasures,theequipmentandthewholeinrestructurethathastobeimplementedinthebuildingisakeyresource,inadditionofthepersonnelrequiredforthesemeasurestobeimplementedwithoutwhich,itwouldnotbepossibletomoveforwardwiththeproject.Forthemeasure“ActiveHouse”anditssub-measures,thekeyresourcesarethesamedescribedinthebusinessmodelreferringthenamed“ActiveHouse”and“energysavingcenter”.Valuepropositions

The implementation of active and passivemeasures aims to satisfy the necessity ofhavingamoresustainablebuilding,intermsofenergyconsumptionsandenvironmentalsustainability.Thiswillbenefittheresidentsofthecondominium(byreducingenergycosts and optimizing the consumptions) and also the entire community (city andneighbors), since the pollution generated by the building itself, should represent anoticeably smaller amount than that of a building without that kind of measuresimplemented.Somevaluepropositionsthatemergewiththistypeofprojects,thesame

55

happensintheothertwolighthousecities,arethepotentialincreaseoftheproperty’svalue.TheValuepropositionforhavinganenergysavingcenteristosaveenergyandreducethecostgeneratedforusingit.Byreducingthetotalamountofenergy,theenergycostsshould be reduced too. The theoretical value proposition is to manage in a muchefficientmanner,theenergeticconsumptionsandL&T’ssolutionsaimstoachievethisgoal. According to previous data, this is a reality, since the systemhas beenprovensatisfactorily in the past. The energy saving center could be analyzed in a separateBusiness Model, to describe in a more precise way, independently, this valuepropositions and the overall sustainability and methods used to implement thisparticularmeasure.With the Virtual Power Plant and the EnergyHub system, there are different valuepropositions,benefitingthepeoplelivinginthecondominium:

• Possibilitytoreducethemainfusegettingalowerfixfeeinseveralapplications• Reduceddistributionlosses• Simpleinstallation• Transparenttoexistingloads• Preventsovercurrentsfromallloadsintheinstallation.

Themostimportantistoprogramhowtousethestoredenergy(intothebatteries)toadjusttheutilizationofthisstoredenergywhenitismorebeneficialfortheresidents.Thiswilldependontheweatherconditions(thefunctionalityofthePVwilldependonthat),andalsothepriceofenergy(dependingontheaggregateddemandatacertainpoint).KeyPartnerships

The following are the key partnerships of the project: construction companies;technologyproviders,energysuppliers,managingandmonitoringcompanies,residents,andpublicadministrations.TheGrowSmarterproject,englobedunderthehorizon2020objectives,triestodeterminewhetherornotsomeoftheprojectscanbeindependentlysustainable from the public founding and the public subsidizes and other type ofdependences.Takingthisintoaccount,therefurbishmentprojectofthecondominium,canbefinanciallysustainableaslongas,inadditiontothebenefitsoftheproject,thecostsarebornebythedirectbeneficiaries.Thatisresidentsandowners.CustomerRelationships

Consideringthetypologyoftheproject,withintensiveconstructionworks,andaprojectspecifically designed for the condominium, the relationships between the industrialpartnersandthecustomer,arerecommendedtobebasedinadedicatedanddesignedto be adjusted to the customer’s necessities. This implies the existence of assistingpersonnelforattendingthecustomer.Consideringtherearemanysub-measuresbeing

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implementedinthecondominium,isimportanttorecommendamanagingauthority,coordinatingtheproject(solution1“energyqualityassurance”),andalsoinchargeofstablishingtherelationshipswiththecustomer.RevenueStreams

For the type of project like that, there are different revenue streams that can beconsidered.Dependingonthefundingsources,theimplementationofthemeasurescanbesubsidizedbythepublicadministration,supposingnoadditionalcostfortheownersofthecondominiumandthepeoplelivinginit.Incasetherearenotpublicfundingorifthereisone,donotsupposeadirectsubsidizefortheresidentsandtheownershipofthe building, the costs might be rebounded entirely by the ownership and directbeneficiariesoftheproject.Inthisregard,thecostoftheinvestmentcouldbecoveredby an increase of the rental prices, and a periodic fee to the energy company. Therevenuestreams,willalsodependonthetypeofmeasure,analyzedseparatelyfromtherestoftheproject,becauseeachmeasure,attheend,representsanindividualbusinessmodelfromthepointofviewoftheindustrialpartners.CostStructure

The cost structure of this model, focuses more in providing to the building withnumerous value propositions with high value in terms of utility for the customers(returns,savings,technology),andnotdrivingitscostsstrategyinreducingthecosts.Thiscanbeexplainedbythehighinvestmentcosts,neededforaffordingtheexpensiveequipment,technologyandtheconnectionwiththeenergysavingcenter,requiredforimplementationoftheproject.Channels

Howisthoughttoprovidethevalueproposition?Toanswerthisquestionisnecessaryto refer to the technical reportof theGrowSmarterprojectwhere specifies that thesystemgeneratesamorestableindoortemperatureandbenefitbetterfrominternalheatsourcesandheatingfromthesun.Thewayinwhichthevirtualpowerplantisgoingtowork,consistsinoptimizingthesupplyaccordingtotheenergydemand.Thevaluepropositions are going to be delivered through by specific technical teams andconstruction works carried out by subcontracted companies (construction, andengineeringfirms).Themeasuresconsistinginofferingverifyingtheconsumptionsandmonitoringsaidconsumptionbehaviorsandrelatedservices,aregoingtobeprovided,physicallyandvirtually,sinceitisnotnecessarytomonitorthedataandconsumptionfiguresbeingpresent,onsite,inthebuilding.

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Solution 2: Smart building logistics

Europe’s cities are growing and thematerials used in construction of buildings andinfrastructureaccountsforupto30-40%ofthegoodsmovedinamoderncity.Reducingunnecessary freight by consolidation will lead to improved quality of life throughreductions innoise,emissionsandtraffichazard.Thiswillalso leadtoareductionofconstructioncosts.Typically,aconsignmentismovedfourtimesbeforeitisputinplaceataconstructionsite.Anestimated25%ofconstructionlabortimeisusedforlookingforthematerialormovingmaterialbeingintheway.BuildingonpreviousexperienceCarrierwillestablishabuildinglogisticscenterwillinÅrsta,tohandlegoodsarrivingtotheconstructionsite.Constructionmaterialdeliveriesare directed to the center, where they are stored in a secure, weather-protectedenvironment,awaitingdeliverytothesitejust-in-time,usingrenewablyfueledtrucks.Hybrid-electricandethanol(ED95)truckswillbeused.Fullyloadedtruckswillreceiveafittingslot-timeinadvanceandgodirectlytotheconstructionssite.Suitablegoodswillbedelivered to thecenterby rail– savingevenmoreenergyandclimateemissions.When the Årsta area is developingwithmore construction sites, the center will bescaled-uptoservealsothese.SomespecificcontextofStockholmisneeded,mainlyabouttheplacewherecurrentlogisticcenterislocated(ifitisconvenientandwhataretheconditionsimposedbythepublicmunicipalitywhenchoosingalocation.ConclusionsregardingtheBusinessModelsrelatedtosolution2

ThissolutionisonlybeingcontemplatedforthelighthousecityofStockholm,however,itcanbereplicatedinotherplacessincethevaluepropositionscouldsatisfynecessitiesfrom all over the world regarding the optimization of the supplying chain forconstructionsites.Ithastobepointedoutthattheroleofthepublicadministrations,publicinstitutionsandregionalandmunicipalauthorities,inamoregeneraldefinition,is strategic since those institutions are the first ones to be interested in reduce thepollution and congestion rates inside cities.What is really important to note is thatpublicadministrationstendtoidentifypositiveexternalitiesandthissolutiongeneratesmanyofthem.Notonlythereductionofthosetaxesbutalsothegenerationofnewjobsthroughtheoptimizationofthesupplychain,thegainsinefficiencyforthosecompaniesinvolved in building tasks and therefore the gain in productivity throughout all theindustry.Publicadministrationscanhelp tomakepossible thesekindofsolutionsbyoffering areaswhere the logistic centers could be settled and after determining thelocalization,apublicprocurementformanagingthelogisticsactivitiescouldbeoptimalas is being done in Stockholm. The financial sustainability depends on reducing themarginalcostsforoperating.Forthisreason,themorethelogisticscenterisused,themore sustainable it is in these terms. The variable costs should not increaseproportionally,sinceonlydependonincreasingthenumberoftrucksneededatcertainpoint.However,thefixedcosts(thecenteritself–buildingandmanagingit-,mostpartofthesalaries)canonlybejustified,fromthefinancialpointofview,byincreasingtheoperability of the logistics center. In summary, is amodel based in a cost structure

58

focused in being compensate by taking advantage of economies of scale. As beinghighlighted,themoredeliveries,theloweritcosts,inaverage,tomakethenextdelivery.

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Stockholm. Construction Consolidation Centre: An IntegratedMulti-modal

transportforconstructionmaterials/logisticscenterinÅrsta

Measure:2.1IndustrialPartner:CarrierTransportandInfo24The Construction Consolidation Centre (CCC) is a logistical set-up to improve theconditionsforconstructionprojectssuchasnewdevelopmentsorrefurbishments.

ByplanningthematerialflowandsteeringinbounddeliveriestotheCCC,itispossibleto increase the efficiency of the building process. Possible savings aremeasured inreducedtime,aswellasdamagetomaterialduringdeliveriesandhandling,andwaste.Thiscancontributetoamajorreductionintheenvironmentalimpactofaconstructionproject.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships

CustomerSegments

1.Logisticscompanies(&

similar)2.Cityauthority

(innon-commercialprojects)

3.ConstructionCompanies4.Thirdpartycompanies

Delivermaterialtoconstructionsiteviaalogisticcenterinorder

togetassembleddeliveries

FortheCity:Lesstrafficjam.Lesspollution,lessnoise.

ForConstructionsite:Fewerdeliveries,better

coordination,lessdamagedgods,morevalueaddingactivities

OnebyOneMarketing&Publicity

PublicProcurementConstructionsites(andthecompanies

managingandexecuting

constructionprojects)

KeyResources Channels

Trucks,forkliftsStorageterminalHumanResources

LocationSoftware&Hardware

Trucks

CostStructure RevenueStreams

FixedCosts:Trucksandforklifts

Salaries&LaborcostsLocation(nowfree)

StorageHardware&Software

1.Feechargetoconstructionsite2.Feechargetosubcontractoronconstructionsite

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Customersegments

Sincethereisthenecessitytoofferaplatformtoplanandinasimplerandmoreefficientway the transportation of the project’s materials to the construction sites, theconstruction and transportation companies could represent the most importantcustomersegmentandthemoredirecttypeofthecustomer,understandingthatthefinalcustomercouldbeeithera third-partycompany,aprivatecustomerorapublicadministration.Valuepropositions

Thevalueproposition tries to satisfy the transportationneedsof the customersandoptimizethenumberofmaterialdeliveriestoconstruction/refurbishmentsites.Thisisthemostimportantvalueproposition,reducethetotalnumberofdeliveriesandalso,bydependingonlyformonesourcefortheconstructionmaterial,optimizetruckloadshelpingtomeetthegoaloflessdeliveries.Inconsequence,avaluepropositionappearsin a form of a positive externality which is to reduce the contaminant emissionsgeneratedby,forinstance,trucktripsorforhavingseparateproviderswithcontaminantfacilities.Channels

Wecouldconsiderdifferentchannelsaccordingtothedifferentphasesoftheproject.At first, when a certain project is under ideation stages and planning works, themanagingcompaniesoftheprojecthastoreceiveawarenessthatthere isasolutionwhichcouldhelptooptimizeitsoperationsbyrelyingtoaconstructionlogisticscenter.Inthissense,acommunicationstrategy,viapublicfairs,constructionandtransportationfairs,advertisements,throughpartnerchannels,orothertypeofchannels,theserviceshouldbeknownamongtheconstructionsector.When a construction company uses the logistics center, when a truck leaves thefacilities,itwouldbeconvenientfortheclienttotrackinrealtimewherethetruckis.Interms of the delivery service, when a company needs construction material orequipment,contactsdirectlytotheconsolidatedcenter,andthisonemanagestosendthe material or equipment in an efficiency way that it can reduce the number ofdeliveries.Customerrelationships

Probablyadedicatedpersonalassistanceforeachclient,wouldnotbenecessary,sincemany companies can use the center, however, for the biggest projects, it could beconvenienttodedicatefull-timestafftoparticularcustomersorparticularprojects.Thatbeingsaid,customerrelationshipswhen itcomestotrackingthedeliveries,couldbebasedonautomatedservicesthrough,forinstance,amobileapplication.

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Revenuestreams

For the customer, using the logistic facilities, the revenues come from the savingsgenerated by the reduction in time of the transportation activity. Thanks to this,consequently,thewaitingtimes,canbereducedifnoteliminated.Othersavingscomefromthereductioninenergycostsandtimeofworkerswaiting,energyconsumptionand stolenmaterial in the construction site, because the fact of nothaving to stockmaterials intheconstructionsites,and leaving it inthehandsofthe logisticscenter,erasesthepotentiallossesduetotheftordeteriorationofthematerial.Followingwepresentsomefiguresregardingthesavingsgenerated.Revenuestothelogisticscenterarethoughttocomefromconstructioncompaniesandothercustomersusingthissolutionbypayingafeeforuse.

• Itisestimatedareductionofnumberofdeliveriesby40-60%• Itwillreduceenvironmentalimpactduetoareductionofdeliveriesandtheuse

ofBiofuelsorelectricvehiclesforthetransportationofthematerials.• Itwillimprovetheefficiencyofthebuildingprocess.

Therearetwokindsofincomes:

The savings guaranteed by the efficient distribution of the materials can bepayedtotheConstructionConsolidationCenter.

AhighdemandoftransportofmaterialstoconstructionsitescanallowtotheCCCtobuythematerialsatalargescaleandhaveunitarycostofthematerialscheaperthankstothescaleseconomies.PartofthesesavingsintheunitarycostcanbeanotherincomefortheCCC.

Keyresources

Theassetsrequiredinthissolutionare:1. LandtosettletheConstructionConsolidationCenter(CCC)(logisticscenterfrom

constructionmaterialetal.)2. Electric or biofuels vehicles to transport the material from the CCC to the

Constructionsite,ortrucks.3. Basicsoftwaretomanagethedemandsanddeliveriesofmaterialsandoptimize

operations.Keyactivities

Achieveagreementswithcustomers.IftheCCCplanstouseonlyenvironmentalfriendlytransportationvehicles,inturn,akeyactivityofhaving support fromthe localauthorities,notallowing the transitofnon-biofuelsorelectricvehiclesinsidethecity,canhelptodevelopthemeasureinaneasierwayfromthelegalandcompetencypointofview.

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Keypartnerships

(1) Constructioncompanies(2) Transportcompanies(3) PublicAdministration

Coststructure

Thecoststructureincludes:• Material,passivemeasures• Equipment,activemeasures• Vehicles• Construction• Maintenance

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Solution 3: Smart energy-saving tenants

Tenants’behaviorinfluencestheenergyconsumptioninbuildingsupto10%throughe.g.theiruseofelectricitygadgets,hotwateroropeningwindowsincoldconditions.Behaviorcanfurthermorehelptoevenoutpeakloads.Thewaytoinfluencetenantsisrelativelycheapandthebusinesscaseishencegood.Inmanycountries,theenergycostisnotincludedintherentsothereisastrongincentiveforthetenantsthemselvestoreduce their energy bill, thus making the business case to provide accurate energyinformationstronger.Asresidentialbuildingsgrowmoreenergyefficient,theroleofthetenantswillbeevengreaterregardingenergysavings,astheymayaffectabiggershareofthetotalenergyuse.Bydeployingsensorsinbuildings,itispossibletobringinformationonreal-timeenergyusetothetenantswhointurncanmonitortheenergyconsumptionandfindwaystoreduceit.HomeEnergyManagementSystemswillbeinstalledinallthreeLightHousecities, visualizing and manage energy consumption. New solutions will be used toautomatically steerhouseholdappliances,minimizingenergyconsumptionandavoidwastingenergy.Tofurthermotivatethetenants,dynamicpricingwillbetested,raisingthepriceofelectricityatpeaktimesandloweringitwhenthedemandislower.GrowSmarterwillalsointroducemeasurementoftheamountofwasteeachhouseholdthrowsaway.Bybillingaccordingtothewastesortingrate,itispossibletoencourageincreasedrateofrecyclingandhencesaveenergy.ConclusionsregardingtheBusinessModelsrelatedtosolution3

Themainpurposeofthissmartsolutionistoprovideonreal-timeinformationaboutenergyusage,intermsofenergyconsumptionandtenants’consumptionbehavior(howconsumption levels are distributed during a period. Knowing this information theconsumershouldconditionitsconsumptionbehavioraccordingly,reducingitifpossibleandthereforeincreasingtheefficiencylevelsintermsofenergyconsumption.Itcanbeconcludedthatsmartsolution3,oftheGrowSmarterproject,complementsprevioussmart solutions of theWork Package 3, regarding the implementation of active andpassiveenergyefficiencymeasures.Weunderstandthattheimplementationofhomeenergy management systems serve for analyze the benefits of those previousimplementations.Ashappensinothertopics,theinterpretationoftheresultsarenearlyasimportantthanobtainingthem,thissolutionbringstothecustomers,anopportunitytoreadthedataobtainedandinterpretitactinginconsequence.Anenergysavingcenter,tobeingoperatedoesnotrequireanimportantfinancialeffortcomparedtoothersolutionsincorporatedinthisdocument.However,sinceitfunctionsasacomplementarysolutionforothertypeofactuations,itcanbeincorporatedwithinbusiness models with bigger costs structures. Regarding the inherent costs of thesolution,itshighaddedvalue,demands,asakeyresource,ofhighqualifiedpersonnel,notonlytodeveloptheenergymanagementsystemsandplatformsbutalso,ifneeded,toanalyzethecollecteddataformakingdecisionsforfutureactions.

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Barcelona.HomeEnergyManagementSystem

IndustrialPartner:GasNaturalFenosa.Measure:3.1.3

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

1.Departments

ofthecompanyitself:marketing,

residential,IT,innovation,

administration,legalandsecurity

2.Fabricant3.Installer4.Externalconsultancy,especiallyforIoTmarketandinnovation,

telecommunication,bigdata5.Customer

itself

1.ChoiceofthefabricantoftheHEMSequipment

2.Definitionofcontractandconditionsforthe

developmentofnewfunctionalities,fortheuseandpropertyofthedata,fortheimagerightsandlogo3.Developmentofan

engagingvisualizationoftheinformation

5.Advancedtechnologicalandtelecommunication

development6.Dataanalysisand

processing7.Trackthebehavioralchangesandinformthecustomeraboutthem.

8.Communicationorientedtocustomerengagement

Empoweringsensationforthecustomerasregardenergyconsumption:

• theycanvisualizetheirbehavioralpatterns,

• theycancontrolandscheduletheuseofsomeequipment,

• theyareinformedabouttheirinefficientbehavior

• theyreceivepersonalizedadviceandcandecidetochangetheirbehaviorinordertoreduceenergyexpenses

• theycanacttohaveabetterthermalcomfortathome

The customer feels cared for by whogivestheserviceandacquires/maintainconfidence,solvingthetendency/desireto change continuously for betterservices.

OnebyOneMarketing&Publicity

Residentialcustomerswitha

minimumtechnologicalbackground(mainlyowners)

KeyResources Channels1.Fundstoinvest2.Humanresourcesformarketing,visualization,IT,dataanalysisandprocessing3.Dialoguewiththebusinessorientationofresidentialdepartmentofthecompany4.Monitoringplatformforbigdatastorageandanalysis

- Directsalestoexistingcustomer(offeringoftheadditionalservice)

- Advertisingcampaigndoortodoor- AdvertisingcampaignviaTV,radio,letterbox,

mailbox- Advertisingcampaignviawebsite

CostStructure RevenueStreams- ConsultancyonIoTmarketand

innovation,telecommunication,bigdata

- Purchaseofequipment- Redesignofequipment,ifnecessary- Visualizationdevelopment- ITdevelopment- Dataanalysisandprocessing- Legalaspects- Installationandcustomercare- Maintenanceofthemonitoring

platform

1. Monthlypaymentbythecustomer,includedinthecontractofenergysupply

2. Sellingofotherservices:dataoftheclientallowstoidentifypersonalizedservices,withahigherpossibilitytoconcludethesale;furthermore,customer’sloyaltyisanaddedhelp.

3. Sellingofotherproducts:dataoftheclientallowstoidentifypersonalizedproducts,withahigherpossibilitytoconcludethesale;furthermore,customer’sloyaltyisanaddedhelp.

4.Growthofcustomers,duetothegoodfeedbackoftheloyalcustomers

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This solutionaims to install ahomeenergymanagement system in some residentialbuildingsconsideredinrefurbishmentprojectsofresidentialbuildings,specificallylistedinsmartsolution1amongotherresidentialbuildingsregardingsolutionsaboutSmartEnergyandSelf-sufficientblocks.CustomerSegments

Home Energy Management Systems are addressed to be installed in residences toprovideamanagingsystemtocontroltheirenergyconsumptionsandpatterns.Forthisreason,sincethemeasureisaddressedtoparticularusersandtheirresidences,itisnotaddressed toamassmarketand isnotdesigned tobe installed in tertiarypurposedbuildingsoranyotherfacilities.ValuePropositions

Themostimportantvaluepropositionofthissolutionistoimprovethequalityoflifeoftheresidentslivinginthebuildings.Thisimprovementinthequalityoflifeshouldbeensured by remotely controlling the monitored systems of the dwellings thus theresidents could have the possibility to adapt the dwelling’s conditions, (in terms ofinternal temperature) to their own comfort standards. Empower the consumer in asense of giving him a tool to control its consumptions more precisely. With theimplementation of aHomeEnergyManagement System, now the user can visualizetheirbehavioralpatterns,controlandscheduletheuseofsomeequipment,beinformedabouttheirinefficientbehavior,receivepersonalizedadviceanddecidewhetherornotchangeitinordertoreduceenergyexpenses.Since this is a management system of the energy, this implies that any change inconsumptions can be detected. In this regard, if an excess of energy consumptionappears,automatically,canbeneutralizedbyoptimizingit.Ifthemeasureisproventobe financially sustainable, it could serve as a useful tool for promoting sustainableeconomic development and raising awareness among other residential buildingownerships.CustomerRelationships

Individualizedcare toattentionandcare toeachcustomer, since theproduct is soldindividuallyforeachcustomer(onebyonerelationship).Channels

It is important to reach awareness among the main customer segment (residentialbuildings)inordertopromotethemeasureinagreaterscale.Thechannelsusedbytheenergy company are based in advertise the measure via TV, radio, letter box andmailbox;andviacorporatewebsiteandothersitesontheinternet.Anownanddirect

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channelof theenergy company, is thedoor todoor channel,offering the service toexistingcustomersasanadditionalone.RevenueStreams

Themost importantrevenuestreamisbased inamonthlypaymentbythecustomer(includedinthecontractofenergysupply).Otherrevenuescouldcomefromusingthedataobtainedbythemeasurementsystem(HEMS)byhelpingtoofferotherproductsadjustedtoaspecificcustomer(basedonthedata).Oranonymousdatausedtodesignproductsorservicesforothermarketsorcustomers(regulationabouttheusageofdatacoulddeterminethepotentialofthissourceofrevenues).Thankstothescalabilityofthemeasure,anditseasyreplicabilityitisexpectedagrowthofcustomersduetothegoodfeedbackoftheloyalcustomers.KeyActivities

Key activities for this solution are the ones absolutelymandatory for delivering theserviceofaHEMSsystemtocustomersinasatisfactoryway.FortheHEMSsystemtowork properly, the activity of collecting and provision dwelling’s energy data isfundamental in this solution. Other important activities are the ones involving theinstallationofthesolution,achievingagreementswitheachindividualneighbors,informabout thesolution,collaboratingwithother industrialpartnersorpublic institutions,stablishingcontractsforsharinganonymousdataiftheregulationallowsit,orbuildingbig data bases for improving the solution and designing other smart solutions, andpreviouslyoftheimplementationofthesystem,toensuretheresourcestodevelopthetechnologyneededbytheHEMSsystem(hardwareandsoftware).OtherkeyactivitiesarelistedintheCanvasmodelofthesolution.KeyResources

As with other business models, key resources can be divided in different categoryaccordingto its typology. Ifweconsiderthefinancial resources, thesearenotof thesameimportanceoftheintellectualorhumanresources,however,inpreviousstages,beforeimplementingtheHEMS,itisrequiredtoinvestinresearchanddevelopmentofthetechnologyrequiredfortheHEMStobecomeareality.Intermsoftechnology,itisnecessarya software to storage thedataandvisualize consumptions. Important keyresourcesare those includedwithin thehumancapitalcategory, forexamplehumanteamsinstallingandmonitoringthedata,whichisimportantformthepointofviewofthe ESCo Company. Also people from the marketing division of the company,visualization, IT and data analysts, and finally other internal specialists. In terms oftechnology

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KeyPartners

ThekeypartnersaretheresidentsofthedwellingswheretheHEMSsystemsaregoingto be implemented and the energy company selling the service; in particular, thedifferent departments of the ESCo company such as marketing, residential, IT,innovation,administrationlegalandsecuritydepartments.Otherkeypartnerscanbethe public administrations (as it is the case of Barcelona), themanufacturers of theequipment, installers,externaladvisorsandconsulters (especially for IoTmarketandinnovation,telecommunicationsandbigdata).CostsStructure

TheinstallationofaHEMSsystemdoesnotrequireahugeamountoffinancialresourcesanddoesnotrequirespecificpre-conditionsbeforeimplementingit.Inthisregardthemaincostsforimplementingthemeasuresatisfactorilyinmanyplacesdependonthemarketingcampaignsandthelevelofawarenessamongpotentialcustomersregardingenergyefficiencysystemsandresidentialproperties.Thecostsstructurecanbelistedasfollows; the costs of developing the technology, consultancy on IoT market, aboutinnovation,telecommunicationsandbigdata;costsofpurchasingtheequipmentand/orredesigning it if necessary; costs from visualization development, data analysis andprocessingcosts,expendituresfromlegalpartners,andmaintenanceofthemonitoringplatform.

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Barcelona.VirtualEnergyAdvisor

IndustrialpartnersinBarcelona:IREC,BarcelonaMunicipality(PPP)Measure:3.1.3The Virtual Energy Advisor aims to reduce household electricity consumption by aminimumof10%byinfluencingconsumers’behaviorshowingelectricityconsumptiondataobtainedfromsmartmetersandgivingtipstoreduceit.

KeyPartners KeyActivities ValuePropositions CustomerRelationships Customer

Segments

(1)BarcelonaEnergyAgency

(promoterofthebusiness)(2)Softwaredeveloper(platform,mobileapp)(2)Hardwaremanufacturer

(smartmeters)

(3)ElectricityDSO

(1)Developmentofthesoftwareto

provideinformationonefficiencyin

electricityconsumptionintheresidentialsectortoencouragebehavioral

changesamongcitizens

(2)Installationofsmartmeter(3)Platformupgrading

Tooffermoreinformationontheelectricityconsumptionpatternstothecitizensand

giveadviceonstrategiestosaveelectricity

inthehousehold(aim:10%electricitysavingsonaverage)

(1)Informationonenergyconsumptionandadvicesaboutenergyefficiency

throughthewebplatformandmobileapp

(2)Informationexchangewithothermembersthrough

theCommunityforum(3)Communicationswiththeplatformoperator

(4)CommunicationswithPublicadministrations.

Workshopsineverydistrict(5)Informationcampaigns

onthemedia Privatesector:citizensofBarcelonaKeyResources Channels

(1)PersonnelfromBarcelonaEnergyAgencyandIREC(2)FinancialresourcesofBarcelona

Municipality(annualbudget)

(3)Smartmeter(optional)

(4)Smartphone,tabletorPCfrom

user'ssidetoaccesstheplatform

(1)Saleschannels:media,press,Municipalityhomepage,e-mail

(2)Servicechannels:Webplatform,MobileApp,calls,

e-mail

CostStructure RevenueStreams(1)Softwarerelatedcosts:

developmentoftheplatform(2)Hardwarerelatedcosts:smart

meters(3)Maintenancecosts:smartmetermaintenance,platformmaintenance

(1)Non-monetaryrevenue:DataonElectricityconsumptionbytheresidentialsectorofthecityasarevenueforthepublic

administration(2)Theuseoftheplatformshouldleadtoareductioninthe

householdelectricityconsumption(thisisnotarevenuefortheBarcelonaMunicipalitybutforthecustomer/citizen)

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Customersegments

Thismeasurecanbeimplementedinmanyplacessinceitonlyconsistsinauser-friendlyvirtualenergyadvisor.However,sinceitusesthedatacollectedbysmartmeters,thismeasure has to be addressed to those customers with this type of infrastructureinstalledinthebuilding.Thecustomershavingsmartmetersthus,thedataneededtoimplementavirtualenergyadvisorfordisplayinginastraightforwardway,arethemostimportantpotentialones.Ingeneral,themeasurecouldbeattractiveforanycustomerwith inquietudes regarding a better environment and a sustainability. Themeasurecouldbelinkedwithothermeasures,wadingthesampleofpotentialcustomers,takingintoaccountaprojectinvolvingdifferentmeasuresoftheGrowSmarterproject.Inthismanner,thismeasurecanbelinkedwiththeplatform“ResourceAdvisor”;measure4.2Energyproviderscanbepotentialcustomers,ifthisisthecase,themodelwouldchangefrom a business to customer to a business to business approach,where the energyproviderbecomesthecompanyfinallysellingtheproducttothefinalcustomer(tenantsandresidentsingeneral).AshappenswiththecaseofIRECatBarcelona,themeasureisreallyattractiveforthemunicipalauthorities,fundingtheprojectforhelping,notonlytobearealitybutalsotobringthissolutiontothefinalcustomers,sincethepositiveexternalitiesareattractivefromthegovernanceandsocial/economicpointofview.Forthisreason,thiscasecouldbeconsideredaPublic-Privatepartnership.Valuepropositions

Thevaluepropositionoftheplatformisofferingmoreinformationabouttheinefficiencyencouragingbehavioralchangeamongsttenants.Theinformationisobtainedusinganintelligent back-end based on algorithms that use data from smartmeters and it ispresentedusinguser-friendlyfront-endwhichcanbeviewedfromanumberofdevices.Theexpectedimpactonuserbehaviorismainlyrelatedtothefollowingtopics:activereductionof electricity consumptionduring thenight, purchaseof deviceswithhighenergyefficiencylabel,useofLEDlightbulbswiththeaimfor10%electricitysavingsonaverage.Channels

(1)Saleschannels:media,press,Municipalityhomepage,e-mail.(2)Servicechannels:Webplatform,MobileApp,calls,e-mail.Customerrelationship

Theinformationisprovidedtotenantsinreal-timethroughaWi-Ficonnectiononweborvia themobileappavailable fordownloadonsmartphonedevices, tabletsorPCs.Emphasisisputonthedirectinteractionbetweentheuserandtheplatformtofollow-

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upandcomparethelevelofefficiencyofthecurrentenergyconsumptionswithpreviousyearones.The platform allows to contact exchange expertise with other members of thecommunity,discussenergy-relatedtopicsandworktowardsachievingenergyefficiencygoalsinordertobecomeasenergy-efficientastheothertenantswithasimilarprofile.CommunicationsbetweenthePublicadministrationandcitizensthroughworkshopsineverydistrict.Revenuestreams

Revenues for the citizens: This platform aims to reduce household electricityconsumptionbyaminimumof10%onayearlybasisbychangingconsumer’sbehavior,thus electricity cost reduction is expected for the users. Another revenue is theexternalitiescreatedforthecity,i.e.cityenergyandemissionsreductionduetolowerelectricity consumption in the residential sector. A non-monetary revenue is thecollectionofelectricityconsumptiondatabytheMunicipality,whichmayhelp inthepromotionofnewenergypolicies.Keyresources

PersonnelfromBarcelonaEnergyAgencytopromoteandmanagethedeploymentofthetool.FinancialresourcesofBarcelonaMunicipality(annualbudget).Wi-ficonnectionatthedwellings.ItishighlyrecommendedtohaveasmartmeterinordertotakefulladvantageofTheVirtualEnergyAdvisorbyreceivingreal-time information.However, tenantsmaystilluse the tool with monthly data from their utility bills. Additionally, users need asmartphone,tablet,orPCtoaccessthedataandtheanalysisgeneratedbytheplatform.Keyactivities

Akeyactivityisthedevelopmentofanintelligentback-endbasedonalgorithmsthatusedatafromsmartmetersthatallowsinformingcustomeraboutenergyconsumptioninefficienciesandencouragingbehavioralchangeamongsttenants.InstallationofsmartmeterandPlatformdevelopmentandupgrading.Keypartnerships

The platform hosts a community of users who exchange expertise, discuss energy-relatedtopicsandworktowardsachievingenergyefficiencygoalsinordertobecomeasenergy-efficientastheothertenantswithasimilarprofile.Itisimportanttogatherabignumberofusersinordertoreceiveasmanyinputsaspossible.

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The key partners, besides users are also the Energy Agency as a promoter of themeasure,thesubcontractedcompanythathasdevelopedthealgorithm(platform),themanufacturingcompanyofthesmartmetersandtheinstallers.Coststructure

-Softwarerelatedcosts:developmentoftheplatformrequiresateamofprogrammersandenergyexpertstoanalyzethemostadequateindicators.-Hardwarerelatedcosts:smartmeters.-Maintenancecosts:smartmetermaintenance,platformmaintenance.

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Cologne.HomeEnergyManagementSystem

Measure:3.1IndustrialPartners:RheinEnergieShort description: Implementation of aHome EnergyManagement systemwith thepurpose of monitoring and visualizing the consumption behavior of differentdepartments,optimizesaidconsumptionsandachievelowerenergycosts.AnumberofapartmentsinColognewillreceiveSmartHomeequipmentwhichenablesthemtosaveelectricityandwarmwaterrequiredbyradiators.Viasmartphone,tabletor PC, consumers will be able to track their energy consumption of the chosenconnecteddevices,allowingthemtoremotelyturnoffallelectricalappliancesandlightsat any time. Furthermore, the data acquired could be available to both the publicadministration,theprivatesector.Duetodataprotection,datafromthesmarthomesystemswillonlybeavailablefortenantsandresidents,inCologne’sproject.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships

CustomerSegments

1.Cologne’scitycouncil

2PrivatePartnersinCologne:AGTInternational&RheinEnergie

2.Companiesthatmightwanttocreatenew

businessesthatdependonthedatagenerated3.Thirdpartytechnicalcompanies

Installingsmart-plugs,acquiringandmanaging

datafromhouseholdenergyconsumption.

1.Reducetheenergy

consumptioncosts,Becomemoreenergyefficient

2.Newbusinessopportunitiesandbusinessmodels(data)3.Reducegreenhouse

emissionsatthecitylevel

4.Understandmoreindepthhousehold

consumptionpatternsby

havingaccesstodata

1.Advertisement2.

Recommendationsfromutilitiescompanies

3.RecommendationsofCityCouncil,orothergovernment

authorities•Privatesector

•Utilities•Public

administration•Households

KeyResources Channels

1.Infrastructure(Smartplugs,Internet,Energy

Infrastructure)2.Technology/apps3.ITknowledge

4.Humanresources(Technical/Customer/GeneralOperationsstaff,R&D)

1.SmartHomeappandwebsite2.Website

CostStructure RevenueStreams1.Hardwarerelatedcosts:smartplugs

2.Softwarerelatedcosts:maintenanceofapp,technologicalinfrastructurerelatedproducts,

andmaintenanceofdata.3.Personnelrelatedcosts:customersupport,

maintenanceandR&D

Energycompanieswillbeabletobetterunderstandhouseholds’consumptionpatterns.Indeed,publicand

privatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.

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Customersegments

Iftheregulationallowsit(intermsofdataprotection),thepublicadministrationandtheprivatesectorswouldbepotentialcustomers.However,itisnotthecaseforCologne:

• Publicadministration(notapplicableforthiscase:a. ThedataonenergyconsumptionwillbegiventotheCityofCologne’s

Open Data-Platform, and thus allow public administration to forecastenergy consumption and understand better household consumptionpatterns.

• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata

Inarealscenario:

Households,themaincustomersegmentarethecitizenswhowanttooptimizetheirutilities’consumption.

Valuepropositions

Forhouseholds:1. Reducetheirenergyconsumptioncosts2. Becomemoreenergyefficient3. Givethematooltounderstandtheirenergyconsumptionpatternsandbeable

toturnonandofftheirhomelightsandappliances.Forprivatesector(regulationdonopermitthisinCologne’scase,butshouldbeincludedinagenericBusinessmodelwhenitcomestoimplementsimilarsolutionsindifferentregulationenvironments):

1. Accesstodatathatcouldgiveaccesstonewbusinessopportunitiesandbusinessmodels.

Forpublicadministrationandcityatlarge:1. Reducegreenhouseemissionsatthecitylevel(independentlyofthelaws,thisis

apositiveexternality.2. Understandmoreindepthhouseholdconsumptionpatternsbyhavingaccessto

data(regulationdonopermitthisinCologne’scaseduetodataprotectionlaws)Channels

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1. SmartHomeappandwebsite2. Website

Customerrelationship

Theplatformallowsfordifferentwaysofcommunicatingwithcustomers–theyprovidedirectlyacustomerserviceplatform,bothviainternetandcall-centers,aswellasallowfordirectcontactwiththecompanyviasocialnetworks.Revenuestreams

No usage fee is charged for the use of the app for customers. However, energycompanieswillbeable tobetterunderstandhouseholds’consumptionpatterns,andthuswill allow for amore efficient supply of energy in urban areas, reducing costs.Indeed,duetomoreinformeddecisions,publicandprivatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.Keyresources

1. Infrastructure:a. Smartplugs(i.e.SmartMeter)b. Internetc. EnergyInfrastructure

2. Technology/apps(SmartHomeapp)3. ITknowledge4. Humanresources:

a. Technicalsupportstaffb. Customerservicestaffc. Generaloperationsstaff

Keyactivities

Installing smart-plugs, acquiring and managing data from household energyconsumption,andtechnologicalsupport incaseofproblemsbothinSmartHomeappandphysicalinstallation/repairingofsmartmeters.TransferringandmanagingthecitydatafromtheSmartHomeapptotheCityofCologne’sOpenDataPlatform.Keypartnerships

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Energy provider: Partnering with the software company that is providing the smarthomeappforRheinenergie.Also important the (relation) partnership with residents/tenants/owners where thissolutionisgoingtobeimplemented.

Coststructure

1. Hardwarerelatedcosts:smartplugs2. Softwarerelatedcosts:maintenanceofapp,technologicalinfrastructurerelated

products,andmaintenanceofdata.3. Personnelrelatedcosts:customersupport,maintenanceandR&D

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Stockholm.TheActiveHouseprojectinStockholm

Measure:3.1.1MainndustrialPartner:FortumImplementationofactivehousingmeasurestoimprovetheefficiencylevelsintermsinenergyandachieveadecreaseinenergycostsinÅrsta,Stockholm.Also,thesolutiononanadaptivecontrolsystemhasbeenimplementedinVallaTorg.

KeyActivities

Thisprojectrequiresapreviousstageofstudyingtheareaanddetermininghowthismeasureshouldbeimplementedoneachbuilding.Thisphaseisdefinedbyatechnicalreportsignaling,asitsnameindicates,anytechnicaldetailthathastobementionedin

KeyPartners KeyActivities ValuePropositions

CustomerRelationships

CustomerSegments

Tingcore(Fortum):product

developmentandtechnical

deliverypartnerBravida:Technical

commissioningandon-sitesupportPropertyowner:

includingthesubcontractors

Development,sales,

installation,commissioning,supportand

maintenanceofActiveHousesolution

Fortenants:increase

awareness,reducingenergy

consumption,convenience

andsimplifyingthelife

Forpropertyowner:increase

marketingandsalesvalue,

fulfillenvironmentalrequirementsForsociety:positive

environmentaleffects

B2B:Throughlargeproperty

ownersB2C:directsalesto

villa/apartmentowners Construction

companies,property

owners/developersand

villa/apartmentowners

KeyResources Channels

Technicalcomponents

HumanresourcesSoftware

B2B2C

CostStructure RevenueStreams

HardwareandsoftwarecostsSalaries

Supportandmaintenancecost

Platformpriceplusmonthlyservicefee(notvalidforGrowSmarterproject)

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aprojectlikethis.Itisimportanttohighlightthatthebuildingswherethesemeasuresaregoingtobeinstalled,differfromonetoanother.Therearebuildingsformdifferentyears,therearedifferenttypesofbuildings,thusdifferenttypeofmaterialsaswell.Thisrequireapreviousmeasurementtofindouthowthebuildingsarereactingtochangesintemperature.Regardingtheimplementationphase,inourcase,Fortumimplementsitssolutionin54apartments inÅrsta. The implementationofActiveHousingmeasures suchas installwater and electricitymeters, sensorize the buildings and deployment of tablets anddimmers, are key activities that take part during that stage of the project, theconstructionphase.Itiscrucialtoincludetheconnectionbetweenthedatacollectinginfrastructure(sensors…)withtheenergysavingcenter,whereallthemeasuringactivitywilltakepart,andinfact,isongoing.Finally,otherkeyactivitieslikemaintenanceorthemanagingpart,arealsoimportant.CustomerSegments

This typeofactivehousingmeasures, canattractanyhouseholdorbuildingowner/manager,wantingtoachieveamajordegree inenergyefficiency,by implementingabuildingenergymanagementsystemtomeasureandconditiontheenergyconsumptionbehaviorofabuilding.Constructioncompaniesorurbandevelopersareanimportantpotentialsegmentofcustomers.ValuePropositions

Therearedifferentvaluepropositionsregardingthisproject.SomeofthemcouldbemoreaddressedtothetenantsofthebuildingswhereaBEMSsystemisbeingdeployed.Thisaction,couldhelptoensureanincreaseoftheawarenesslevelsintermsofenergyconsumptionanenvironmental sustainabilityof the residents.At thesametime, thevaluepropositionofreducingtheenergyconsumptionsismorerealistic.Otherapproachtoconsiderasavalueproposition, isthesimplificationandconvenienceproposal.Toeasier theprocedures formonitor theconsumption levels, simplifying the lifeof thetenants.Othervaluepropositionsaremoreaddressedtosatisfysomenecessitiesoftheownersof theproperties in termsof increasingthemarketingandsalesvalue,andfulfill theenvironmentalregulationsandlocalrequirementsinthisregard.In a more collective approach, mention the positive externalities that occur whenmeasureslikethisone,arebeingimplemented.Thevaluepropositionofreducingtheoverallpollution,couldbeachievedthanksofmeasureslikethat.

KeyPartners

Fortum, as themain industrial partner (Energy Company); Skanska, in charge of theconstruction plan; Tingcore as product developer and technical delivery partner(TingcoremergedwithFortuminJune2017);andBravidia,asatechnicalcommissioner

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andon-sitesupportresponsible.Alsonotetheimportanceofthepropertyownerofthebuilding.Andfinally,thesubcontractedcompanieswhichparticipateinanypartoftheimplementationandmeasuringprocess.CustomerRelationships

The customer relationships are being established differentiating between thoseinvolving Fortum and a large property owners / urban developers / constructioncompanies;andthroughdirectsalestoownersofabuilding.Channels

Thechannelsusedtoreachnewcustomers(finalusersandindustrialclients)representthemostefficientwaytobeconnectedwithsaidcustomers.Inaprojectlikethat,thosechannelsaredirectones.SinceFortumisawell-knowncompany intheScandinaviancountries,alsoamongotherindustriesrelatedwithFortum’smarket,thechannelsused,favor business-to-business relationships. Fortum sells thismeasures to other relatedindustries, for instance, construction companies. Afterwards, a business-to-costumertypeof relationshiphas tooccur,because, the finaluserswill be the tenantsor theresidentsofthebuildings.Inthiscontext,thechannelscanbedefinedasaB2BfollowedbyaB2Csituations.Attheend,therearemoreasymmetricinformationbetweentheconstructioncompany(convincedviacapturingvalue)andthefinaluser(convincedviamarketing),theresidents.KeyResources

To implement a BEMS in a neighborhood, starting in Årsta, requires some financialresources, considered key for such a project. Part of this funds, comes from theGrowSmarterproject,otherformtheindustrialpartners.Thetechnicalcomponents(sensors,electricitymeters…)havetobeconsideredcrucial,akeyresourceforthisproject.Thesameappliesforthesoftwareneededtomanageallthedata,detectingtrends,andtakeconclusionsforimprovingtheconsumptions.RevenueStreams

Theindustrialpartnerchargesapriceforthesoftwareplatform.Inaddition,amonthlyusagefeeisrequiredtoutilizethesystem.So,therevenuesstructureisdividedintwoparts,afixedamountfortheplatformandavariableamountforthetimeutilizingit.(ThisrevenuestreamsarenotvalidfortheGrowSmarterproject,sinceitisasubsidizedproject).

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CostStructure

Themaincostsarethosegeneratedduringtheimplementationphasesandthecostsoriginatedduring themaintenanceof the technical componentsandalso theenergymanagementsystem.Duringtheimplementation,alltheequipmentandtheinstallationneeded supposes a relevant expenditure in terms ofmonetary costs, but should beconsideredasan investment (withamortizationcosts).Asmentioned, therearealsocoststhatappearforsupportingandmaintainingthesystem.Insummary,aprojectlikethisrequireaconsiderable investment, intheformoffixedcostssince it isacapital-intensive project. However, the variable costs are also important, depending on thenumberofflatsanddepartmentsfinallyincorporatedinthesampleoftheproject.

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Stockholm.LowEnergyDistrictsSolution

Industrypartners:Fortum&Info24Measure:3.1.1Shortdescription:Provide a ‘state of the art’ graphical user interface that gives households real-timeinformation on electricity, hot water and apartment heating consumption patterns.Moreover,customerscantrackhowmuchmoneytheyarespendingandCO2theyareemitting with their energy consumption, potentially having an effect in theirconsumptionpatternsandallowingthemtochangetheirbehavior.Amongotherthings,thisprojectwillalsogivethetenantstheabilitytoremotelycontrolthelights,chargingofelectricandhybridvehicles,andcontrolofradiatorthermostatsinthehouse.Itwillalsogivetenantstheopportunitytomonitortheusefulnessoflocallyproducedrenewableenergysuchassolarenergy inthehouse,as theapp integratessuchsourcesofenergyintheenergyinformationtrackerofthehouse.

Customersegments

1. Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures

2. Tenants/citizenswhowanttospendlessinenergyandbecomemoreenergy-friendly

3. Privatesector/withtheinformationacquiredfromtheproject,businessescangetmoreindepthknowledgeofconsumptionpatternsfromhouseholds.

Valuepropositions

Households:1. Trackingofenergyconsumptioninthehouse,givingtenantsinformationabout

howcostlyitisforthemtoconsumeenergyataspecificmomentintime,aswell

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams(1)Fixedcosts:a.Serversandphysical

infrastructure;b.Platformmaintenanceanddatamanagement;c.Salaries

(2)Variablecosts:a.Salesandmarketing,b.Researchanddevelopmentcosts

Tochargesomecostforthesmartmetersandsensorsandtheirinstallationandmaintenance.Tochargemoreflexibletariffstructures.

1.Localauthorities/citymanagersandadministrators

2.Utilities’companies3.Thirdpartytechnical

companies

Installingsmart-plugs,acquiringand

managingdatafromhouseholdenergyconsumption

Households:Trackingofenergyconsumptioninthehouse,tocontrolremotelythelightsandthermostats

inthehouse,allowindividualstoseeand

managewhentochargethevehicle

Citycouncil:Propellingabehaviouralchangefrom

households’energyconsumption

Privatesector:Accesstonewbusiness

opportunitiesandbusinessmodels

1.Advertisementonwebpages2.Recommendationsfrom

util itiescompaniesinterestedinofferingbetterservicesto

theirusers1.Tenants/citizens2.Privatesector

3.Publicadministration/municipalities1.Physicalassets(Smart

Meters,Internet,EnergyServicesandApps)2.Humanresources

(technicalknowledgeandexpertise)

1.Energyconsumptiontrackingapp

2.Websiteoffirm(Fortum)

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as how much greenhouse gasses the household would emit by consumingenergy.

2. Theappalsoallowsindividualstocontrolremotelythelightsandthermostatsinthehouse,makingiteasierforthemtocuttheirconsumptioniftheyconsideredtodoso.

3. In terms of electric vehicle charging, which is becoming more and moreimportanteveryday,theappwillallowindividualstoseeandmanagewhentochargethevehicle.Inthisway,householdswillbeabletochargetheirvehicleswhenenergy isthecheapest,havinganeffect intheenergybill thattheywillhavetopay.

Citycouncil:

1. Propelling a behavioural change from households’ energy consumption willcontributetothecity’sdevelopmentinenergyefficiency.

Privatesector:1. Betterunderstandingofhouseholds’consumptionpatternscangiveaccessto

newbusinessopportunitiesandbusinessmodels,aswellasallowtoreducetherisks associatedwith operational and strategic business decisions.Moreover,more information canpropelmore efficient energy supply systems, and thusreducingthecostsandincreasingprofitsofutilitycompanies.

Channels

1. Energyconsumptiontrackingapp2. Corporatewebsite(Fortum)

Customerrelationship

The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams

Smartmeters and the integration andoptimizationof the infrastructureof differentutilities offers several opportunities to create new revenue streams. First, they cancharge some cost for the smart meters and sensors and their installation andmaintenance.Itcaneitherbeaone-timesaleorthrougharenting/leasingschemethatwill allowcustomers touse the smartmeters (whichwill in turnallowcustomers toreducetheirenergyconsumptionandcost).Second,thenewintegratedinfrastructureandmore accurate information on energy consumptionwill allowutilities to chargemoreflexibletariffstructures.Inthissense,thebenefitsintermsofenergyefficiencyand climate changemitigation thanks to abetter integrationof energydemandand

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energygenerationcanbring importantefficiencies tomunicipalities, tenantsandthesocietyasawhole.Moreover,asmentionedpreviously,energycompanieswillbeabletobetterunderstandhouseholds’consumptionpatterns,andthuswillallowforamoreefficientsupplyofenergyinurbanareas,reducingcosts.Indeed,duetomoreinformeddecisions,publicandprivatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.

Keyresources

1. Physicalassets,includingtechnologicalinfrastructureandsoftwarea. SmartMeters(electrical,gas,water,heating,cooling)b. Internetc. EnergyServicesandApps

2. Humanresources(technicalknowledgeandexpertise):a. Technicalsupportstaffb. Customerservicestaffc. Generaloperationsstaffd. R&D,data-analysisandtechnologyresearchteam

Keyactivities

Installing smart-plugs, acquiring and managing data from household energyconsumption,andtechnologicalsupport incaseofproblemsbothinSmartHomeappandphysicalinstallation/repairingofsmartmeters.Keypartnerships

1. Localauthorities/citymanagersandadministrators2. Utilities’companies3. Thirdpartytechnicalcompanies

Coststructure

(1) Fixedcosts:a. Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenanceb. Softwarerelatedcosts:platformmaintenanceanddatamanagementc. Personnelrelatedcosts:salaries

(2) Variablecosts:a. Salesandmarketingb. Researchanddevelopmentcosts

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Stockholm.Hubgrade-EnergySavingCentre

Industrialpartners:L&TMeasure:3.1.1TheHubgradesoftwarecomplementstheEnergyQualityAssurancemeasure.Shortdescription:Hubgradecombinesanumberofenergy-savingmeasures:

• AdaptiveTemperaturecontrolsystem• WatersavingEquipment• AdaptiveCurrentEqualization

The prime objective of these measures is to reduce energy costs and integraterenewable energy systems efficiently in the energy consumption and production ofhouseholds. The project is based on three main ideas for reducing energy: putting

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

1.Localauthorities/citymanagers

andadministrators2.Utilities’companies

3.Thirdpartytechnicalcompanies

AdaptiveTemperaturecontrol

system,watersavingEquipment,AdaptiveCurrent

Equalization

•Households:Energysaving,EnablesbetterusageofPVsolar

investment,Reducesstressonabuilding’selectricalsystem,Incentivizesamorecost-efficientuseof

energy•Utilities:Reducesstressonelectricaldistributionsystems,repairtheenergyindustryfornewbusinessmodels,

Encourageasmootherenergyconsumption

pattern•Publicsector:

Encouragesamoreenergy-efficient

economy,Reducesnegativeenvironmental

impact

Customerscancontacttheprovider,L&T,throughtheir

website.

Privatesector:1.Propertyowners

2.Buildingmanagingcompanies

3.Residentialcompounds

KeyResources Channels

Hardware(Building’scontrolsystems,sensors,districtHeatingNetwork,ACE,Photovoltaicpanels,energy

storageSoftware

(EnergyHubcloudplatform)

Solutionprovider’swebsite:L&T

CostStructure RevenueStreams

(1)Hardwarerelatedcosts(2)Softwarerelatedcosts(3)Personnelrelatedcosts

Themostefficientoutgoingtemperaturetotheheatingsystemgeneratingenergysavings,watersaving.

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forwardtherighttechnique,changeconsumptionbehaviorforthebetterandensuretherightmaintenanceoverthelong-term.Customersegments

Privatesector:1. Propertyowners2. Buildingmanagingcompanies3. Residentialcompounds

Valuepropositions

• Households(1) Energysavingpotentialisincreasedfrom5%to35%(2) EnablesbetterusageofPVsolarinvestment(3) Reducesstressonabuilding’selectricalsystemwithincreasedEVcharging(4) Incentivizesamorecost-efficientuseofenergy,consumingmoreenergywhen

energytariffsarelower,andorganizingenergyconsumptioninbetweenseasonsoftheyear

• Utilities(1) Reduces stress on electrical distribution systems through local production –

storage–loadcontrol(2) Prepare theenergy industry fornewbusinessmodelsandsmartgrid support

functions(3) Encourage a smoother energy consumption pattern at the macro-level by

makingcustomersconsumemoreinhourswhereenergyismoreabundantanddemandislower

• Publicsector(1) Encouragesamoreenergy-efficienteconomy(2) Reducesnegativeenvironmentalimpact

Channels

L&T’scorporatewebsitewhichistheproviderofthesolution.Customerrelationship

Customerscancontacttheprovider,L&T,throughtheirwebsite.Incasetheyhaveanytechnicalproblemoraquestionabouttheservice,theycancontactthecustomerserviceofL&T.

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Intermsofmaintenanceandinstallationofequipment,workersfromthecompanywillgototherespectivehousesandinstallations,creatingaface-to-facerelationshipwithcustomers.Revenuestreams

• TheAdaptiveTemperaturecontrolsystemcanavoidunnecessary increases inwatertemperatureduetosuddenchangesofoutdoortemperatures.Thesystemcontinuouslyprovidesthemostefficientoutgoingtemperaturetotheheatingsystem generating energy savings (from 5% to 15%), reducing moreoverenvironmentalimpact.Thesystemismanagedandcontrolledthroughacloudmakingiteasytofollowtheenergysavingresults.

• WatersavingEquipment.Upto60%watersavingsonindividualtaps.Targetto

save20-30%ofoverallwaterconsumptionThosesavingsshouldcompensatefortheinitialinvestmentandmaintenancecostpaidtothemanagingcompany,L&T.Keyresources

Hardware:• Building’scontrolsystemsconnectedtotheHubgradesoftware.• Indoortemperaturesensors• DistrictHeatingNetworktocollectdata• Watersensorsandelectricalsensorsthroughautomaticmeterreadings• ACE(AdaptiveCurrentEqualization-partoftheEnergyHub-)functionisachieve

amoreefficientuseofthethreephasesupply.• Photovoltaicpanels• Energystorage,thatcanbechargedfromthegridatnightatlowercostiflowPV

productionisexpectedinordertomanagepowercapacitypeaks

Software:• EnergyHub cloud platform that analyses the collected data. The system

combines the building’s load profile with electricity prices and the weatherforecasttocreateabasisforefficientsystemcontrol.

• Moreover, the smartmeter and automatic energy analysis work with a self-learning algorithm that ensures that the most optimal use of harvested PVenergyforenergystorageisputinplace.

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Keyactivities

• AdaptiveTemperaturecontrolsystem:Anormalcontrollingsystemusesoutdoortemperaturetoadjusttheoutgoingwatertemperaturetotheheatingsystem.This system constantly monitors the indoor temperature to influence theexisting controlling system for heating. Building’s own inertia (as using abuildings basic construction, possible insulation and activities inside, to keepindoor temperature at wished level without unnecessary raise of watertemperature)canbeusedinviewofincludingsolarradiation,variousactivitiesinthepropertyetc.

• WatersavingEquipmentinstalledonstandardtaps:kitchen,sink,andshower.

• Adaptive Current Equalization. EnergyHub is an electrical Hub controllingphotovoltaicsolarharvest,energystorageandelectricalconsumptionanalysisinonesystem.TheEnergyHubconsistsofmodular,distributedpowerelectronicsmanaging energy flow between PV production, energy storage and localconsumption/grid export. The smart meter and automatic energy analysisensureoptimalusageoftheharvestedPVenergywithenergystorageandself-learningalgorithms.TheEnergyHubsystemoperatesasaPVsystemduringdaytime, storingexcessPV inenergystorage foruseduring thenightandwintermonths.

Keypartnerships

1. Localauthorities/citymanagersandadministrators2. Utilities’companies3. Thirdpartytechnicalcompanies

Coststructure

d. Hardwarerelatedcosts:i. Sensors,technicalequipment,cables,etc.

e. Softwarerelatedcosts:i. Allthenecessaryequipmenttoensurethatthesoftwareworks

properlyandtherearenobugsinthesystemthatmightnotallowcustomerstoeffectivelymakeuseoftheservice

f. Personnelrelatedcosts:i. Technicalpersonnel:ii. Customerservicepersonneliii. R&Dpersonnel

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Solution 4: Smart local electricity management

Europeisincreasingitsuseofrenewableelectricitybutelectricityproductionfromsunandwindisintermittentandcauseslocaldeficitsandsurplusthatsometimescannotbebalancedassomeregionalandnationalgridsarenotcapableoffastdistributionatlongdistances,orthereisalackoffastactingbalancingpower.Hencedemandandsupplymayneedtobebalancedlocallyandcombinedwithstorage.Thinkstoconsiderbyeachlighthousecityandshouldbedescribedinthisdocument: - Regulation related with self-consumption sources of electricity and if it ispossibletoconnectthissourcestothegrid(takingadvantageofenergysurpluses). - If therearesignificant interruptions in theproductionofenergyusing thesesourcesofenergy,howcanaffecttheviabilityofthesolution.(ForexampleindeficitofsunhoursinthewinterofStockholm. ConclusionsregardingtheBusinessModelsrelatedtosolution4

Thissolutiongainsitsimportancewhenensuringthemaximizationofprofitsgeneratedbytherefurbishmentprojectsofthesmartsolution1,andtheimplementationofenergymanagementsystemsofthesmartsolution3.Theeffectivenessofthesmartsolution4willdependoneachrefurbishmentproject,ortheenvironmentandconditionsofthebuilding where the solution is going to be implemented. For those buildings withextremeclimatology(lowerminimumtemperaturelevelslikeStockholm)whereasmartlocalelectricitymanagement system is installed, thebenefitsofmanaging inamoreefficientway, theoptimization in consumptions, could representamajorproportionthancitieswhereweatherconditionsarenotthatextreme(forexampleBarcelona).Therearedifferentregulationsdependingonthecountry,affectingtheviabilityoftheprojectinsomecases.Insomecountries,feedingthegreedwiththeexcessofelectricitygeneratedbyself-consumptioninstallations,typicallyphotovoltaicsolarpanels,isnotallowed yet. In said countries, regulation takes into account these other sources ofenergy, andmaking possible the apparition of new smart solutions like smart localelectricity management systems. With a more favorable regulation, these type ofsolutionsdonotrequireofpublicfunding,sincethesavingsgeneratedshouldbeenoughtocompensatetheinvestmentinarelativelyshortperiodoftime.Forthisreason,withfavorableregulations,publicfundingorinterventionmightnotbeneeded.Something deserved to be noted here is that the proliferation of self-consumptionenergypowerplantsrequireothertechnologiestoappearinordertomanagethistypeofenergysources.Someoftheproposalsofthisdocument,serveasasolutiononthisregard, for instance, a software developed by Schneider Electric, implemented inBarcelona;orL&T,implementingothersolutionforthecaseofStockholm.RheinEnergieisalso implementingsimilarproposals in thecityofCologne.Finally, considering theimportance of having a better environment by reducing the pollution, sustainableproductionofenergywillbecomeatrend,inevitably,inamediumorlongtermbeingabletosolvetheenergeticdeficitofthecities.Ifthesehypotheticaltrenddemonstrates

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to be constant in time, the generation of high added value jobs (research anddevelopmentofnewerandmoreefficienttechnologies)andconstructionmightalsobenoticeable.

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Barcelona.Smartenergyandself-sufficientblock

Measure:4.2.1IndustrialPartner:GasNaturalFenosa

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

-Manufacturers-Engineers-Constructors-Installers-Departmentsofthecompanyitself-Communitysocialworkers-Presidentoftheneighborcommunity-Theneighborcommunity-Investors-Publicadministration(urbanlandscapedepartmentandresponsibleforsubsidies).-Publicadministration,inthecaseofpublicprivatepartnership(PPP).

Publicadministrationsshouldpromotetheuseofrenewableenergyandself-generationofittofeedthegrid.Otherkeyactivitiesarethetechnic

reportsbeforeimplementingthe

measures,organizationofmeetingswithalltheparts,construction,monitoringandmaintenance.

Optimizationoftheenergyconsumptionlevelsofthebuildings,increasetheirefficiencyandthevalueofthe

property.Also,toreachaself-sufficiencyratiosatacitylevel.Summarizing,toimprovethequalityof

lifeofthecitizens.

Relationshipbetweenenergyprovider(actingas

asingleinterlocutorwithalltheparts)

Importantalsotherelationshipswithpublicinstitutions

Neighborcommunitie

s(BTC)or

Contractors(BTB)or

Publicadministration(PPP)

KeyResources Channels

Fundstoinvest;Communitymanager;

Administrationmanagerforbureaucracy

management;otherhumanresources

Technology;Monitoringplatformfor

customers

-Withneighborcommunities:

Variousadvertising

campaigns(TV,socialmedia,websiteamong

others).-Withcompanies:

Directsales.-Withpublic

administration:Directsales.

CostStructure RevenueStreamsFixedcosts(Negotiationofcontracts,project

development,legalizationprocess,construction,commissioning,salaries,

technologicalinfrastructure,participatoryprocesswiththecommunity,monitoringand

analysis,maintenance).Variablecosts(marketing,incidentsanddelays,energycost

ifsupplied,lackofhumanresources)

Savingcomingfromtheoptimizationonconsumptions.Andfromtheenergycompanypointofview,revenuescomingfromthemaintenanceservicesandalsoforofferingthe

servicebasedonfuturesavings.

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CustomerSegments

In Barcelona, the solution is being implemented in both, tertiary and residentialbuildings. Some sub-measures differentiate between the uses of each building, forinstance,onresidentialbuildings,photovoltaicpowerplantswithenergystoragewillbeinstalledinordertosupplycommunityresidentialconsumption.However,finally,thisparticularsub-measureisbeingimplementedvirtuallysincethepresentconditions,intermsofproductionofelectricityforself-consumptionandintermsoffeedingthegreedwithsaidenergy,donotpermit todeliver thesolution inamorepracticalway.Thatbeingsaid,thissolutionisaddressedtoanyblockwithenergy-efficiencynecessitiesandownedormanagedby peoplewilling to achieve better sustainable levels and lowerconsumptions if possible. The role of public administrations has to be considered,helping to implement the solutiononprivate buildings or implementing it onpublicownedbuildings.ValuePropositions.

For the residentsand theneighbor communities, thevaluepropositionof improvingtheirqualityof life.Furthermore, therelativeeasy replicabilityof thesolution,couldextent this value proposition to other resident or tertiary blocks. Other valuepropositiontohighlightistoincreasetheenergyindependenceofthesecommunitiesby implementing renewable sources of it. These should also help to improve thesustainabilitylevelsofthebuildingsandalso,electricityutilitybillsareloweredduetotheself-consumptionofelectricity,theenergyarbitrageandtheminimizationofpeaks.Fromthepointofviewofthecontractor/investor,itcanbepredictedanincreaseofthebuilding’senergyefficiency labels,henceamajorpropertyvalue. Fromthe technicalpoint of view, a value proposition consisting in delivering an integrated solution ofrenewablegenerationincludingequipment,installationandmaintenanceprocurement,easingothervaluepropositionstobecomeareality.Finallyforpublicadministrations,tohelpthemtoreachtheirself-sufficiencyratiosatcitylevel.CustomerRelationships

Relationships with neighbor communities: neighbors meetings and via the BuildingAdministration.Forcontractor:Onebyone,specializedattentionaccordingtoeachimplementationofthemeasure,thesameforpublicadministrations.Channels

The in which the solution going to be delivered, note that the production andconsumptionsystemsinstalledinthebuildingswillbemanaged“virtually”inordertoanalyze possible scenarios for electric grid at island level, particularly in cases ofcomplementaryconsumptionprofiles.

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To reach awareness among potential customers, different channels are beingcontemplated by the industrial partner. For the neighbor communities, advertisingcampaigns(TV,socialmedia,websiteamongothers),aretheoptiontostablishachannelwiththesepotentialcustomers.Forother industriesorcompanies (contractors),alsopotentialcustomersof theservice,directandownchannelsaretheprimarychanneloption according to the energy company. The same happens with publicadministrations.RevenueStreams

Therevenuestreams,fromthepointofviewoftheenergysupplier,arebasedonthoseexternalresources(comingfromtheGrowSmarterprojectandEuropeaninstitutions,public administrations) and those revenues coming from the contractual agreementbetweentheparts,theenergycompanyandtheenergydemander.Abrokeragefeeonthesavingsduetobuilding’senergyoptimization,iscontemplated.Inaddition,revenuesmayalsocomefromthecontractofmaintenancebetweenparts.Fromthepointofviewof the final customer, some revenues shouldappear (justifying the smart solution interms of sustainability and positive externalities) supposing in someway, a revenuestream if renewable sourcesofenergyare installed. Those saving shouldbepresentduringaccordinglytothelifetimeofsaidinstallation.KeyActivities

A participatory process within the neighbor community (and tertiary building’sownership) to involve all parts into the decision-making process. This participatoryprocess has to include private investors (energy companies) and also publicadministrationswhenitisnecessary.Otherkeyactivitiesarethedesignandinstallationworks,todefinethesizeoftheprojectandtheimplementationmethodology,alwaysconsideringtheconsumptiondata;andthe tendering processes regarding the equipment providers and the installationcompany.Theworksupervision,takingintoaccounthealthandsafetyissuesandalsothedetailedengineeringactivities,arefundamentalones,mandatorytobeincludedinhere.Atthesamecategoryofimportanceweshouldincludetheactivitiesrelatedwiththeplanning,commissioning,managing,maintenanceandcontroloftheconsumptionlevels.KeyResources

Previousresources(beforeimplementingthesolution)aretheexistenceofblockswithminimalrequirementforphotovoltaicinstallationintermsofsurfaceavailability,goodorientationtowardsthesuncycleorhighelectricconsumptionforcommonzones,andalso the existence of urban islands, more specifically, sets of annexed blocks with

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complementaryconsumptionprofiles(fortheapplicationofthe“smart-grid”solutionandbecausethesupply-demandreason.Thatbeingsaid, thekeyresources,asothercases,canbedividedbetweenfinancial,physical,humanandintellectual.Startingwiththefirstone,thepaperoftheindustrialpartnersandpublicadministrationsarecrucialwhenitcomestoensurethesetypeofresources,evenmoreimportantsincetheimplementationofsomeofthesub-measuresrequire to fund the purchase of expensive assets and technological equipment forinstance.Nottomentiontheimportanceofthewholeinvestment,countingsalariesandotheraspectsof thecost structure.Physical resources, arealreadybeenmentioned,givingimportancetotheequipmentrequired.Finallyhumanandintellectualresources,not only to install the equipment but also to research and investigate the solutionsduringpreviousstages.Inthisregard,someexamplesaretheadministrationmanagerfor bureaucracy management, and the technic works for reporting the adequateproceduresforimplementingthesolution.Referringtointellectualresources,wehaveto mention the licenses utilized and technologies developed, very important whenapplyingamonitoringplatformforcustomers,topermitthemtoanalyzetheirbehaviorsandtoachievetheirloyaltyinasenseofaseller-customerrelationship.Keypartners

Thepartnersinvolvedwiththeimplementationofthesolutionarenumeroussincethereare many buildings subject of said implementation. Each of the ownerships are afundamental part for this solution to be executed. For this reason, owners of thedwellings,andtheoverallpropertiesoftheresidentialbuildings,havetobe includedwhenlistingthekeypartners.Thesamecanbeappliedontheownershipofthetertiarybuildings, key partners as well. The promoter of the solution, the energy companydeliveringtheservice,istheotherhalfofthestoryregardingfundamentalpartners.Inbetween,alsoconsideredkeypartners,arethoseotherpartiesinvolvedinsomewaywith the implementation, manufacturing of the technologies, developing them,installingormanaging.Withthisregard,manufacturersandthird-partycompanies(forexample providers or transporters) are also included in the list. Finally, do notunderestimatetheroleofpublicadministrationsandpubliccompanies,developinganimportantpaper,notonlytofund(ifitisthecase)butalsotoensureachannelbetweentheprivateindustriesandfinalcustomers,sometimesbeingpartofthem.Costsstructure

Fixed costs (Negotiation of contracts, project development, legalization process,construction, commissioning, salaries, technological infrastructure, participatoryprocesswiththecommunity,monitoringandanalysis,maintenance).Variablecosts(marketing,incidentalsanddelays,changeoflackofhumanresources,energycost,ifsupplied).

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Barcelona.AManagementandControlSoftware:Avisualisationplatformto

assesstheimpactofenergyretrofittingmeasures

Measure:4.2.1IndustrialPartner:SchneiderElectricThis project comprehends only one measure, consisting in a software for datavisualizationforaBEMsystemtominimizeconsumptionsoffossilfuelsandelectricity.

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

Publicandprivateactors.Mainlyprivateactorswillingtoimplementthemeasureintheirbuildingsor

willingtoreselltheproducttoafinalcustomer.Schneidersellsasoftwarethat

othercompaniescould

incorporateintheirprojects.(Refurbishmentofbuildings/

newinstallations)

Monitortheenergy

consumptiontooptimizeenergymanagement.

Datavisualization.ThesoftwareisstrictlyrelatedtotheBEMsystem.

(1)Trackingenergyconsumptioninbuildingsandcalculationof

carbonandenergysavingscomparedto

baseline.(2)Validationandverificationof

energyandcarbonemissionsdueto

buildings’performance.

(3)Clearcommunicationsandcomparisonof

resultsacrossvariousEnergy

EfficiencyProjects.(4)Theprevious

resumedinreducingtheconsumptionsandincreaseenergy

efficiency

PublicsectorPrivatesector:•BuildingrefurbishmentandConstructioncompanies•Architects/engineering/energycompanies

(1)Privatesector:offices,malls,shops(2)Publicsector,

hospitals,schools,

ministries,CityHall…

KeyResources Channels•Communicationmodule•Counters•Sensors•EMS•Internetconnectedserver•Internetconnecteddevicestovisualizeservicefunctionalities

Specializedcontractors,ITspecialized

company.ItismainlyaB2Bmodel.FinaluserswithaBEMsystemcouldrequirethesoftwareaswell(B2C)

CostStructure RevenueStreams

Investmentcosts:Developmentthesoftwareandlicenses.

ThisSoftwareincreasesthecostoftheEnergyManagementSystemEMS

platform.

TheEMSissoldtofinalcustomerswhoareexpectedtorecoverthecostofthesolutionbystopping

unnecessaryenergyconsumptionidentifiedduringthemonitoringprocess.ThesystemREQUIRESasoftware

thecustomerpaysforthelicenses.

CustomerSegments

This product aims to satisfy the necessities of those customers needing a softwarecapable to visualize the data collected through a BEM system. In this regard, anycustomer of a BEM system, needs this software to be implemented within their

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installation. For this reason, privatemanufacturers of energymanagement systems,energyprovidersor related industries, couldbepotential customersof thisproduct.PublicadministrationshavealsotheirownbuildingswithBEMsystemsimplemented,beingpotentialcustomersaswell.ValueProposition

To bring a tool via software for optimizing operations of the buildingmanagementsystems.Thisisadatavisualizationsoftware.MakeasoftwareforGNFandIRECinthecaseofBarcelona,butinotherplacesaswellforevaluateandfollowtheprojectsandmeasuresrelatedwithconsumptions.Themainobjectiveofthesolutionistoreduceconsumptions(uptoalmost10%)byoptimizingenergymanagementand,atthesametime, and to evaluate the energy savings obtained thanks to these refurbishmentactions.Othervaluepropositionrecallsinthenewopportunitiesthatcanbegeneratedthanksofit,newopportunitiesinoptimizationandconsumptions.KeyActivities

Developing the software, keep improving it tomaintain competitiveness in front ofother similar software. In addition, the activities involved with the customerrelationship, in order to keep a satisfactory relation with the customer, sometimesindispensableforimprovingtheapplicationitself.Finally,thesellingprocessoftheapp.iscrucialtoextenditseffectivenessandmarketshare,givingitamainstreamuseandreducing its marginal costs. The more installations, the more sustainable is theimplementationofthemeasure.KeyResources

Financialresourcestocoverthedevelopmentandresearchcostsnecessaryforhavingarobustsoftware.Andforthedevolvingphases,humanresourceswithengineeringandinformatics/developerspecializations.Otherhumancapitalisalsorequired,intermsofmanaging people, administration and marketing. Finally, also considered as a keyresource,isthephysicalassets.Theonesrequiredtomonitorenergyconsumptionare:

• Communicationmodule• Counters• Sensors• EMS(EnergyManagementSystem)• Internetconnectedserver• Internet connected devices (PC, tablet or cell phone) to visualize service

functionalities

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KeyPartnerships

Theindustrialtechnologicalcompanydeveloperofthesoftware,andtheindustriesthatrequire to implement it. For instance, in the case of Barcelona, Schneider. Alsoimportanttoconsiderthefinalbeneficiariesforhavingthevisualizationtoolbesidestheenergycompanies(finalusersunderstoodasresidents).Publicandprivateactorsshouldcooperatetoincreasetheawarenessaboutimportanceofreducingtheenergyfootprint.Whilethepublicadministrationshouldtrytoreduceenergyconsumptionfosteringanefficientuseofenergythroughbuildingrefurbishmenttoachieveenvironmentalsafestandards,privatefirmsarewillingtoreducetheirenergycosttoincreasetheircompetitiveness.Coststructure

Sincethesemeasuresmustalwaysbecompaniedbyothermeasures,basically,aBEMSoraHEMS, the costsof implementing thisproduct shouldbeaddedwhenaprojectconsiderstoimplementsaidrelatedmeasures.Fromthepointofviewofthecompanyinchargetodevelopandselltheproduct,themaincostswillbethoseoriginatedforcreating the software: investment costs (developing it, paying licenses if theywere,salaries andminor related costs). Themeasure could be implemented separately orafterwardswhenothermeasuresarealreadybeenimplemented.Ifthisisthecase,areconsideredindividuallyforthismeasure,beingthemostimportantones,thecostsofdeveloping theappand selling it. Sinceothermeasures (hardware relatedones) arepreviouslyrequired,thecostsofsaidmeasuresarealsoimportanttobehighlightedinthis lines: Hardware related costs: communication module, counters, sensors andinternetconnectedserver.RevenueStreams

Revenues that come from selling the software. The product can be sold through asubscription feeor,morenormally,withasinglepaymentwithoutanytime limit forusingthesoftware.The Energy Management System is sold to advanced users (companies) who areexpected to recover the cost of the solution by stopping unnecessary energyconsumptionidentifiedduringthemonitoringprocess.Thesystemcanleadtoanalmost10%reductionintheenergyconsumptionofthebuilding.Thosesavingsshouldpay-offforthecostofBEMSservices.

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CustomerRelationships

Adviceandconstantcustomerservicebeforeandafterpurchasingthesoftware(incasethereisanyprobleminapost-purchaseimplementationphase.Channels

Channels based in a Business to Business Environment. The Building EnergyManagement System (including communication module, counters, sensors and theEnergy Management System) is installed by specialized contractors duringrefurbishmentofthebuildingandmonitorizedbyITspecializedcompany.Thesystemwill allow comparing energy consumptions of fossil fuels before and after therefurbishmentofatertiarybuilding.

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Cologne.ResidentialEstateManagement

City:CologneMeasure:4.1IndustrialPartners:RheinEnergieShort description: The solution consists of a virtual power plant (intelligentmanagementsystem)whichconnects localphotovoltaicproduction,heatpumpsandbatteries. The system optimizes energy and heat consumption by interconnectinginternal(photovoltaic,heatpumps,batterystorage)andexternal(districtheat)energyproducers.Additionally theproject includesalsothe integrationwithinthesystemofachargingstationforelectricvehicles(carsandpedalvehicles).Theprojectleadstoapartlyself-sufficientenergysupplythatresultinlesspressureonenergygrids,lowercarbonemissions,andfinallybetterairquality.

KeyPartners KeyActivities ValuePropositions

CustomerRelationships

CustomerSegments

(Cologne'smainindustrialpartners:

RheinEnergie);alsoconsiderequipmentand

softwareproviders,public

grid

Thegatheringofinformation

thoughmetersinstallation

Tooptimizetheenergyproduction

andconsumptioninordertoreducetheneedforexternal

energyfromthegrid

firmsofferingtheserviceshouldcontactand

approachfirmsofferingservicesto

finalclients

(1)Privatesector:a.RealEstatedevelopers

b.Constructioncompanies

c.Architectsandengineering

companiesofferingturnkeyprojects.

d.Dwellingscommunityowners(2)Publicsector

KeyResources Channels(1)Virtualpower

plant(2)ExternalandInternalenergy

producers(3)Smartmetersto

gatherinfo.(4)Batteriesforenergystorage

contractors,architectsorengineeringcompanies

CostStructure RevenueStreams

1.Hardwarerelatedcosts:meters2.Softwarerelatedcosts:intelligent

managementsystem3.Personnelcosts:monitoringofserviceandmaintenanceofthe

equipment

(1)Revenuesfromsellingtheservicetodwellings(2)Increaseintheenergyself-supplyreducingtheneed

forexternalenergy(3)Revenuescomingfromthefedintothepublicgridoftheexcesscurrentthatisremuneratedthroughthe

GermanrenewableenergyactEEG(4)Lesspressureonenergygridsforutilities

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Customersegments• Privatesector:

a. RealEstatedevelopers(theycanaddvaluetotheirdevelopments)b. Constructioncompaniesc. Architectsandengineeringcompaniesofferingturnkeyprojects.d. Dwellingscommunityowners

• Publicsector:Reducescarbonemissionsandimprovesairquality

Inbothcasestenantscanbenefitfromanincreaseinself-sufficientenergysupplyandreductioninenergyconsumptionandthereforeintheenergybill.Valuepropositions

Thevaluepropositionoftheserviceisofferingoptimizingenergyandheatconsumptionby interconnecting internal (photovoltaic, heatpumps,battery storage) andexternal(districtheat)energyproducers.Thesystemmeasurewhatenergy is currentlybeingusedwithineachapartmentandcanpredict futureenergyconsumption. Ituses thisinformationtooptimizetheenergyproductionandconsumptioninordertoreducetheneedforexternalenergyfromthegrid.TheexcesscurrentcanbesavedinstorageorfedintothepublicgridbeingremuneratedthroughtheGermanrenewableenergyactEEG.Channels

Intelligentmanagementsystem(orvirtualpowerplants),smartmeters,batteriesandinternalenergyproducersshouldbeinstalledindwellingsorbuildingsbycontractorsunder requirements of themain contractor, architect or engineering company. Thecontrol andmonitoring of the system should bedoneby theprovider of the virtualpowerplant.Alternativelyaprivatefirmcanofferturnkeyprojecttofinalcustomerandprovidethemtherequiredequipmenttooffertheservice.Customerrelationship

Thebusinessmodelconsistsonofferingaservicetofinalcustomersratherthansellingtheequipmentitself,asthemainaddedvalueisfoundontheintelligentmanagementsystem.Forthatreasonfirmsofferingtheserviceshouldcontactandapproachfirmsofferingservicestofinalclientsinwhomtheycanincludeenergeticservicestoaddvaluetotheirdevelopmentsorrefurbishmentsprojects.

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Revenuestreams

Therevenuesintheprojectareobtainedfrom:(1) Revenuesfromsellingtheservicetodwellings(2) Increase intheenergyself-supplyreducingtheneedforexternalenergyfrom

thegridandconsequentlyreducingenergycostforhouseholds(3) Revenuescomingfromthefedintothepublicgridoftheexcesscurrentthatis

remuneratedthroughtheGermanrenewableenergyactEEG(4) Lesspressureonenergygridsforutilities,reducingmaintenancecostsforthe

companiesKeyresources

Theassetsrequiredtomakethesolutionworkarethefollowing:(1) Virtualpowerplanttooptimizeenergyandheatconsumption(2) Externalenergyproducers:photovoltaic,heatpumps,batterystorage(3) Internalenergyproducers:districtheat(4) Smartmeterstogatherinformationinthebuilding(5) Batteriesforenergystorage

Keyactivities

Thegatheringofinformationthoughmetersinstallationinthebuildingtomeasurewhatenergy iscurrentlybeingusedwithineachapartment topredictandoptimize futureenergyconsumptionreducingtheneedforexternalenergyfromthegrid.Keypartnerships

Thefirmofferingtheserviceshouldcooperatewithequipmentandsoftwareprovidersforaproperfunctioningoftheservice.Itisalsonecessarytohaveagoodconnectionwiththepublicgridtofeeditwiththeexcessofelectricenergy.Anotherkeyissueistoprovideuserswithdetailedinformationaboutthebenefitsandcostreductionobtainedresultingfromtheservice.Coststructure

- Hardwarerelatedcosts:meters,- Softwarerelatedcosts:intelligentmanagementsystem- Personnelcosts:monitoringofserviceandmaintenanceoftheequipment

Revenuestreams

Thecompanychargesthecustomersfortheprovisionofservicethatincludestheleasingofallrequiredequipment,maintenanceandmonitoringenergymanagementsystem.

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Stockholm.EnergyHubbyL&T(ElectricalHub)

Measure:4.1IndustrialPartner:L&TTheprojectconsistsissimilartothoseoftheothertwolighthousecities,installinganenergymanagementsystemtomaximizetheinvestmentinsolarpowerinstallationsinpreviousdescribedbuildingsinthecityofStockholm

KeyPartners KeyActivities ValuePropositions CustomerRelationships

CustomerSegments

Publicandprivateactors.Mainlyprivateactorswillingtoimplementthemeasureintheirbuildingsor

willingtoreselltheproducttoafinalcustomer.Schneidersellsasoftwarethat

othercompaniescould

incorporateintheirprojects.(Refurbishmentofbuildings/

newinstallations)

Monitortheenergy

consumptiontooptimizeenergymanagement.

Datavisualization.ThesoftwareisstrictlyrelatedtotheBEMsystem.

(1)Trackingenergyconsumptioninbuildingsand

calculationofcarbonandenergysavings

comparedtobaseline.

(2)Validationandverificationofenergyandcarbonemissions

duetobuildings’performance.(3)Clear

communicationsandcomparisonofresultsacrossvariousEnergyEfficiencyProjects.(4)Theprevious

resumedinreducingtheconsumptionsandincreaseenergy

efficiencybyvisualizingtheresults

PublicsectorPrivatesector:•BuildingrefurbishmentandConstructioncompanies•Architects/engineering/energycompanies

(1)Privatesector:

offices,malls,shops

(2)Publicsector,

hospitals,schools,ministries,CityHall…

KeyResources Channels•Communicationmodule•Counters•Sensors•EMS•Internetconnectedserver•Internetconnecteddevicestovisualizeservicefunctionalities

Specializedcontractors,ITspecialized

company.ItismainlyaB2B

model)

CostStructure RevenueStreams

Investmentcosts:Developmentthesoftwareandlicenses.

ThisSoftwareincreasesthecostoftheEnergyManagementSystemEMS

platform.

TheEMSissoldtofinalcustomerswhoareexpectedtorecoverthecostofthesolutionbystopping

unnecessaryenergyconsumptionidentifiedduringthemonitoringprocess.ThesystemREQUIRESasoftware

thecustomerpaysforthelicenses.

Customersegments

Anybuildingwithenergyefficiencymeasuresandthenecessaryinfrastructurerequiredtomonitorand implementasoftware likethis. In this regard, itdoesnotmatter thetypologyofthebuilding,whetheritispublicorprivate.

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Valueproposition

Themainvalueproposition is toprovideandbuilda software capableofdisplaying,through different manners, the information about an energy management systeminstalled in a building and crucial to maximize the profits or saving generated byinstallingsolarphotovoltaicpanelsequippedwithbatteries (ElectricalHub)andothersolutions.Thesoftwareisrequiredtomaximizetheflowbetweensolarpanels,energystoragesystemsandthegrid. Insummary,thevaluepropositionistoofferatoolforanalyse, simulate and control a local electricity management system, for shavingconsumption peeks, optimize consumptions and implement an adaptive currentequalizationChannels

Themain tool to promote this solution consists in using the data collected and theresultsobtainedforthefirstbuildingswherethesolutions isbeing implemented(BrfÅrstakrönet)toextrapolatethemtoothersimilarbuildings,allowingthistodefinesomepreviousconclusionsabout thebenefitsof implementingenergyefficiencymeasuresandhowtooptimizetheconsumptionsandthegenerationofelectricity(photovoltaicpanels)foreachtypeofbuilding.KeyActivities

Developing the software, keep improving it tomaintain competitiveness in front ofother similar softwares. In addition, the activities involved with the customerrelationship, in order to keep a satisfactory relation with the customer, sometimesindispensableforimprovingtheapplicationitself.Finally,thesellingprocessoftheapp.iscrucialtoextenditseffectivenessandmarketshare,givingitamainstreamuseandreducing its marginal costs. The more installations, the more sustainable is theimplementationofthemeasure.KeyResources

Financialresourcestocoverthedevelopmentandresearchcostsnecessaryforhavingarobustsoftware.Andforthedevolvingphases,humanresourceswithengineeringandinformatics/developerspecializations.Otherhumancapitalisalsorequired,intermsofmanaging people, administration and marketing. Finally, also considered as a keyresource,isthephysicalassets.Theonesrequiredtomonitorenergyconsumptionare:

• Communicationmodule• Counters• Sensors• EMS(EnergyManagementSystem)• Internetconnectedserver• Internet connected devices (PC, tablet or cell phone) to visualize service

functionalities

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KeyPartnerships

Theindustrialtechnologicalcompanydeveloperofthesoftware,andtheindustriesthatrequiretoimplementit.InthecaseofStockholmthedeveloperoftheEnergyHubisthestart-upcompanyFerroAmpandthecompanyresponsibleofinstallingthesoftwareisL&Tbeingthemain industrialpartnersince is theone implementingthesolution forotherprojectswhereitisinvolved.Inaddition,isthecompanypromotingandboostingtheimplementationofthesolutioninthecityofStockholm.Finallynotetheimportanceofthefinalbeneficiariesforhavingthevisualizationtoolbesidestheenergycompanies(finalusersunderstoodasresidentsormanagersoftertiarybuildings).Coststructure

Sincethesemeasuresmustalwaysbecompaniedbyothermeasures,forexampleanenergymanagementsystem,thecostsofimplementingthissolutionshouldbeaddedtothosewhenaprojectconsiderstoimplementsaidrelatedmeasures,anditiswhathappensinthecaseofStockholmandL&T.Fromthepointofviewofthecompanyincharge to develop and sell the product, themain costs will be those originated forcreating the software: investment costs (developing it, paying licenses if theywere,salaries and minor related costs). However, the measure could be implementedseparatelyorafterwardsothermeasures.Ifthisisthecase,thecostsstructurehastobeconsideredindividuallyforthismeasure,beingthemostimportant,asmentioned,thecostsofdevelopingtheappandsellingit.Sinceothermeasures(hardwarerelatedones)arepreviouslyrequired,thecostsofsaidmeasuresarealsoimportanttobehighlightedintheselines(communicationmodule,counters,sensorsandinternetconnectedserver).RevenueStreams

Revenues that come from selling the software. The product can be sold through asubscription feeor,morenormally,withasinglepaymentwithoutanytime limit forusingthesoftware.Ifthedeveloperofthesoftwareisadifferentcompanythantheoneinstallingandimplementingit,thecompanydevelopingthesolutioncouldsellitentirelyto the installing company (to construction or energy companies), trespassing theintellectualpropertyandlicenses.The Energy Management System is sold to advanced users (companies) who areexpected to recover the cost of the solution by stopping unnecessary energyconsumptionidentifiedduringthemonitoringprocess.Fromthepointofviewofthecustomers,inStockholm,theideaisthatthecostoftheHubgradesolutionisgoingtobefullycompensatedbytheenergyandpowersavingsachieved.

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CustomerRelationships

Advice and constant customer service before and after purchasing/installing thesoftware (in case there is any problem in a post-purchase or implementation andmonitoringphase).

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WorkPackage3.Integratedinfrastructures

ThemainconclusionsfromWorkPackage3–IntegratedInfrastructuresdependontwomain groups of solutions. The first one involves interventions with physicalinfrastructureandthesecondonewithdatainfrastructures.Solutionswithphysicalinfrastructureinterventions(Solutions5to7)havethefollowingpotentialitiesandchallengesahead:

(1) Huge potential for energy, economic savings and creation of new markets. Withpotentials ranging between 20 to 50% of energy savings, new lighting systems canreducepublicexpenditurewhileofferingbetterservices.Inaddition,thesesolutionscanbe implemented using public-private-partnerships that reduce risks and initialinvestmentforthepublicsector.Regardingheatrecoveryanddistrictthepotentialforenergy saving is also veryhigh (around0.5 TWhannually in the caseof Stockholm).Furthermore,thebusinessmodeloflettingthedistrictheatingoperatorbuyexcessheatthroughaplug-andplayheatpumpsolution,andthensellittothecustomersneedingheatisacompletelynewbusinessmodelthatcouldopenupthedistrictheatingsystemstoanopenmarketofheatexchange.

(2) Hardinfrastructure,hardchallengesahead.Themajorityofthesolutionsrequirebiginterventionsinpublicspace,whichrisestwomainchallenges.Thefirstoneisdealingwithpublicsectorrequirementsregardingpermitsoraestheticalnorms.Thesecondonedealswithpotentiallyhighinitialinvestmentcosts,especiallywhenthesolutionhastobeescalatedatthecitylevelafterthedemonstrationphase.Thissecondchallengecanbemitigatedbyfollowingapublic-privatepartnershipschemawheretheriskandinitialinvestments are transferred to the private sector in exchange of the exploitation ordurationofthecontract.

(3) Highpotentialforbetterqualityoflife.Fromthesocialpointofview,allthesolutioncan foster better quality of life in European cities. Ranging from better and moreefficientlighting,toretrofittingofDistrictHeatingsystemsandlesswastetrucksinthestreet, all the solutions contribute to lessnoiseand lesspollution (both inemission,noiseandluminesceterms).

(4) Mediumpotentialforjobcreation.Sinceallthemeasuresinthisgroupneedtodealwith physical infrastructure, they will create jobs during implementation phases.However,theywillalsocreatemorespecializedjobstomainandsolveproblemswiththedeployedinfrastructure.

Regardingthesecondgroupofinterventions(Solutions8),thisareourmainconclusions:(1) Dataisoneofthemaindisruptionsinourtimes.Theavailabilityofdata,theavailability

ofnewmethodologies and the computational capacity available todayoffers ahugeamount of opportunities both for cities and companies or citizens. Thanks to theubiquityofsensorsanddataproducedbypublicworkflows,citieshavehugeamountofdata that can be extremely useful for them –in terms of internal use- but also for

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companiesandcitizens–bothineconomictermsandinfosteringtransparencyofpublicadministrations-.

(2) Big Data and Bad Data. We have concerns with data quality or ineffective datagovernanceasanobstacle.Whilehavingplentyofdataisgoodnews,insomecasesthequalityandaccuracyofthedatacanleadtobaddecisionsifitisnottakenintoaccount.Inasimilarway,ifcompaniesorcitizensaccesspublicdatathroughOpenDatawebsitesthatisnotgoodenough,theywillprobablynotdoanythingwithit.

(3) Dataisnotthebiggestobstacle.Whiletechnologyordatacanseemthemainbarrierorobstacletotheeffectiveimplementationofthesemeasures,therealityisthatgettingitdoneisnotthemainchallenge.Theadoptionbarriersthatorganizationsintheprivateandpublicsectorarefacing–inotherwords,thehumanfactor-isthebiggestobstacleforthefullpotentialdeploymentofthesemeasures.Thelackofunderstandingonhowto use this data, the bureaucratic workflow or the organization culture need to beadaptedtothenewdataparadigm.

(4) Lowpotentialfor(direct)jobcreation.Dataandsoftwarerelatedindustriesarenotjob-intensive.Inthatsense,thepotentialforunemploymentreductionthroughthemassiveimplementationofthesemeasuresisdubious,atleastdirectly.Wesaysobecausethequalityofjobsinthedataindustrytendtobehigherthaninothersectors,whichmeansthatthewholeeconomycanbebenefitedbycreatingjobsinrelatedindustriesorotherservicesthatwillleverageonmoreskilledandbetterpayedworkforce.

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Solution 5. Smart Street Lightning

Street lighting keeps urban centers safe, but traditional lampposts consume hugeamountsofenergy.CombiningenergyefficientLEDbulbswithmotionsensorswillallowlamppoststodimwhennobodyisaroundandbrightenupaspeopleapproach.What’smore, by using lampposts as communications hubs and EV charging points, thelighthousecitieswillgetmorefortheirmoney.Publicspaceisoneofthemainresourcesavailabletocitizensincitiesallovertheworld.Public space is key for people and goods transportation, socialization or recreation.However,citiesareconstrainedbytheirphysicaldimensionandthuspublicspaceisascarce resourcewith competing uses. At the same time, lighting is one of themainservicesprovidedbycities.Lightingallowsustoenjoyandusepublicspaceona24hbasisandprovidessecurityduringdarkhours.Asa counterpart,providing lighting toanentire cityhasbig implications in termsofenergyandspaceconsumption.Themeasuresincludedinthissmartsolutiondealwithboth problems: saving public space and reduce energy consumption. Since thisproblematic is transversal to all cities, a proper implementation of these kind ofsolutionscoulddelivergoodresultsbothintermsofenergyconsumptionreductionandpublicspacesaving.InBarcelona,municipalservicesaimtocreateanimageofthecityatnightthatstrikesabalancebetweenfunctionandstyle.Inordertomovetowardsamoresustainableandefficient city, they are incorporating new lighting technology, such as LED, but alsomanagementelementssuchasregulation,thepossibilityofremotecontrol,andnewtechnologicalsolutionsingeneral.Thecurrentlightingcriteriaareaimedatcaringforpedestrians, integrating sustainable mobility, reconsidering the urban greeninfrastructureandenhancingclassicoriconographicarchitecturalvalues.Barcelonahasmorethan146,000pointsoflight,includingstreetandartisticlighting;anunbalanceddistributionwhichisthefruitofurbanrenovationsandisolatedmaintenance,leadingtoawidevarietyofcriteria,modelsandresults.ProjectswithsmartstreetlightingareongoinginseveralpartsoftheCityofStockholm.ThegoalistohalvethecostofelectricityforlightingusingLEDtechnologyandmotionsensorswhichallowlightat fullstrengthwhensomeoneapproaches.TheTrafficandWaste Management Administration have also initiated tests to control the lightingwhereeachlampiswirelesslyconnectedviaaso-calledmeshnetwork.ConclusionsregardingtheBusinessModelsrelatedtosolution5.

Themajorityofmeasures implementedunder theSolution5–SmartStreetLightingumbrellarelyonpublicspaceinterventions.Thismeansthattheindustrialpartnersneedacloserelationshipwiththepublicsector(theultimateownerofpublicspace).Thisfactpresentsatwo-sidedsituation.Inthefirstplace,todelivertheirvaluepropositions,thisbusinessmodelsneedtointeractwithpublicsectorauthoritiesandbeadaptedtolocalregulationsregardingpublicspaceanddesign.

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Byprovidingintegratedsolutionscitiescansavespacebyleveragingonhardwareandlamppost designed to provide multiple services in one single location, avoiding thespread-outofdifferentpublicspaceinterventionsforeachpurpose.Atthesametime,theintroductionofnewlightingtechnologies–LEDs,sensors,etc.-canderiveinenergysavingsbyabettermanagingofthesystem.Thisbenefitsareprovidedbylow-energylightingprovision,remotecontroloftheinfrastructureforinteractionandincidencestrackandadaptivelightingtospecificconditions.Intermsofscalabilityandreplicationthefactthat industrialpartnersneedtohaveaclose relationship with the public sector will trigger the implementation process asnegotiationswith the City Councils need to be carried out city by city to adapt theproducttolocalspecificities.Ontheotherside,thepositivecommentisthatoncethisinitialbarrierissolved,thesolutioncanbeimplementedinamassivewaybychangingthelightingsystemsinbigareasorevenentirecities.Another important take-away from these measures is that they can be deliveredthrough public-private partnerships. Thanks to the energy savings produced by thetechnology implemented in these measures, private partners can internalizeinvestmentscostsandrecoverit(plusprofits)viaenergysavings.Regardingjobcreation,thistypesofmeasureshavethepotentialtocreatemanyjobs–especially during the implementation phase and the public space intervention-. Inaddition, the lighting system also requires human intervention formaintenance andcontrol.

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StockholmSmartLEDstreetlighting

Measurerelated:5.1Industrialpartners:CityofStockholm,TrafficAdministrationMeasuresincluded:5.1.1;5.1.2and5.1.3SummaryofBusinessModel: SensorcontrolledLEDlightingforpedestrianandbicyclepaths(SensorcontrolledLEDlightingforpedestrianandbicyclepathstoenablethelightstoprovidebaselightingtosatisfythefeelingofsecurityatalltimesandincreasetheleveloflightingwhensomeoneapproaches).Self-controlledLEDstreetlighting(Self-controlledLEDstreetlightingwithpre-set lightingschemesbasedon levelsof traffichas thepotential tosavingenergycompared to regular LED light). Remote controlled LED street lighting (RemotecontrolledLEDStreetlightingwhichcanbecontrolledfromadistance).

Customersegments

TheSmartLEDstreetlightingmaincustomersegmentisthepublicsector(CityCouncilorthespecificdepartmentinchargeofthecitylightingsystem).Valuepropositions

Thevaluepropositionofthismeasureistosaveenergybymanagingbetterthelightingsystemofthecity.ThankstothesensorsdeployedandLEDtechnology,citymanagerscanoptimizethelightingpowerbasedonexternalconditionslikeclimateorpedestrianspassing-by.

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Channels

Thesystemdeployedhasacontrolsystemsoftwaretomanagethepowerandsituationofeachlightingpole.Customerrelationship

The customer relationship is based on email connections and telephone calls formaintenanceandproblemsolving.Revenuestreams

Thismeasurecanbemonetizedbothbydirectpurchaseoftechnologyorbypayingafeeforsystemdeploymentandmaintenance.Keyresources

• Physicalassets(sensorsandlightingpole)• Humanresources(formanagingthecontrolsystem)• DigitalIOTplatform(forinteractingwithdeployedinfrastructure)

Keyactivities

• Installingandmaintaininglightinginfrastructure• Managingthelightingcontrolsystem

Keypartnerships

• EnergyProviders• PublicSector• Hardwareproviders

Coststructure

• Hardwaremaintenance• Deploymentcosts

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BarcelonaSmartMultifunctionalTower

Measurerelated:5.2IndustrialPartners:CellnexSummaryofBusinessModelSolution to save energy & rationalize the use of public space by the integration oflighting,environmentalsensorsandcommunicationsdevicesinasinglelightingpole.

Customersegments

• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures

• ConnectedServices:privatecompaniesthatwanttooptimizetheiroperationsand hardware deployment by leveraging on existing infrastructure andconnectivityservicesintegratedintotheSmartMultifunctionalTower.

Valuepropositions

ThevaluepropositionoftheSmartMultifunctionalToweristooptimizepublicspacebyintegrating different services (mainly lighting, sensoring and connectivity) into onesinglepole.

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Channels

ThemaincommunicationchannelwillbeanAPIinterface(measure8.5integratedintomeasure8.1)toremotelycontrolthelightingpoleandtheirconnecteddevices.Customerrelationship

The customer relationship will be through email and the usual channels forinfrastructureproviders.Revenuestreams

TheSmartMultifunctionalTowerhastwomainrevenuestreams:publiccontractandconnectivityasaservice.Thefirstone,istheusualpubliccontractforinfrastructureandhardwareprovisiontothepublicsector.Inaddition,oncethepolehasbeendeployed,theindustrialpartnercanleverageonanotherrevenuestream:connectivityasaservice.Thankstotheconnectivitypossibilitiesofthelightingpole,itcanbeusebythirdpartiesto connect their devices (mainly sensors) without deploying new connectivityinfrastructure.

Keyresources

PhysicalassetslikeLPWAandWi-Ficonnectivitydevicesorthelightingpole.

Keyactivities

-Lightingprovision-Transferringandmanagingdataobtainedbyenvironmentalsensors-ConnectivityprovisionKeypartnerships

-Localauthorities/citymanagersandadministrators-ThirdpartytechnicalcompanieswithconnectionneedsCoststructure

(1)Fixedcosts:-Hardwarerelatedcosts:lightingpoleandconnectivitydevices(2)Variablecosts:-Physicalmaintenanceofthepole

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CologneCombinedelectricalchargingandstreetlightingpoles+Wifi-to-grid

connection

Measurerelated:5.2Industrypartners:RheinEnergieSummaryofBusinessModelSolution to save energy & rationalize the use of public space by the integration oflighting,electricalchargingandcommunicationsdevicesinasinglelightingpole.

Customersegments

• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures

• Privateusers:electricalvehicleusers• ConnectedServices:privatecompaniesthatwanttooptimizetheiroperations

and hardware deployment by leveraging on existing infrastructure andconnectivityservicesintegratedintotheSmartMultifunctionalTower.

Valuepropositions

Thevaluepropositionof thecombinedelectrical chargingandstreet lightingpoles+Wifi-to-grid connection is to optimize public space by integrating different services(mainlylighting,electricalchargingandconnectivity)intoonesinglepole.

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Channels

ThemaincommunicationchannelwillbeanAPIinterfaceforlightingandWi-Fiservicesandadirectprovisionforelectricalchargingservices.Customerrelationship

The customer relationship will be through email and the usual channels forinfrastructureprovidersandserviceproviders(electricalcharging).Revenuestreams

Thecombinedelectricalchargingandstreetlightingpoles+Wifi-to-gridconnectionhastwomainrevenuestreams:publiccontractandserviceprovision(payperuse).Thefirstone,istheusualpubliccontractforinfrastructureandhardwareprovisiontothepublicsector.Inaddition,oncethepolehasbeendeployed,theindustrialpartnercanleverageonanotherrevenuestream:payperuse.Thankstothecapabilityforprovidingelectricalcharging, thepole canbemonetizedbyuserpaymentsevery time theycharge theirelectricalvehicles.Keyresources

Physicalassetslikethelightingpole,connectivitytoWi-Finetworkandconnectivitytotheelectricalgrid.Keyactivities

-Lightingprovision-Electricalchargingstation-ConnectivityprovisionKeypartnerships

-Localauthorities/citymanagersandadministrators-Energyprovidersforelectricalcharging-ThirdpartytechnicalcompanieswithconnectionneedsCoststructure

(1)Fixedcosts:-Hardwarerelatedcosts:lightingpole,energygridconnectionandconnectivitydevices(2)Variablecosts:-Physicalmaintenanceofthepole

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StockholmSmartConnectedCityEnvironment

Measuresrelated:5.2Industrialpartners:CityofStockholm,IBMShortDescription: TheSmartConnectedStreetEnvironmentisaprocessthatinvolvesthefollowingsteps:

• Defineusersand theirneeds fordata collectionandadaptive steering inCityenvironments

• Analysetheexistenceofopticalfibreandelectricity

• ProcuresensorsandInternetofThings(IOT)platformtobeabletobothcollectdata,butalsoforapplicationsandadaptivesteeringofstreetenvironments

• InstallandconnectthesensorstoanIOTplatform

• Analysedataanddevelopapplications/solutionsintheplatform

• Test and evaluate applications in the connected street environment to getinstantfeedbackontheirperformance

Inthiscontext:

• 10 sensors for collecting vehicle flow data is implemented inSlakthus/Globenarea.Thesesensorsareconnectedtotheexistingopticalfibernetworkinstreets.

• 45sensorsforcollectingpedestrianandbicycleflowdataisimplementedintheSlakthus/Globenarea.Thesesensorsareconnectedtoexistingopticalfiberincityownedbuildings.

• Real-timedatafromthesensorsareintegratedintoIBM’sIOTWatsonplatform.• Otherdatasourcessuchasweatherdatacanbeintegratedinthesameplatform• Thecityfunctionsaddressedisfirstlimitedtotransportrelatedissues,suchas

traffic analytics, predictions, pedestrian, bicyclist street lights steering,maintenanceofstreets,trafficlightsteering

TheopticalfibernetworkcompanyStokabisfirstlocatingpossiblepointsforsensors,basedonexistingfibernetwork(instreetorbuilding).Theneedanduseofsensordataisdefinedby theTrafficAdministration,whichprocures the sensors. Stokaband theTrafficAdministrationprepareforinstallations.The procured company install the sensors and make sure that data transfer andintegrationissuccessfulintotheIBMIOTWatsonplatform.Realtimedataisusedtoanalysetransportemissionsinarea.Active measures and steering of for instance street lights, traffic lights, streetmaintenance, parking is performedbased on the real-timedata to reduce transportemissionsandincreasepeopleflowinthearea.

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Customersegments

• CityAdministrations• Publicadministrations• Cities/communities• Realestateowners• Serviceprovidersforwhomaccurateinformationaboutpeopleflowisessential

forthebusiness

Valuepropositions

• Forthecity/community:ThesensordataaswellasIOTplatformcanbeusedformany functions,will increase insightof trafficandpeople flow,giveexactbaselinesfortransportemissions,giveagoodbaseforproblemanalysisaswellas for testing and evaluation methods to reduce transport emissions trafficcongestion

• For realestateowners:will give informationaboutpeople flow inandoutofbuildings,butalsoifcertainstreetsorareasaremorefavouredthanothers,giveagoodbaseforfindingsolutionstoincreaseattractivenessandpeopleflowinandoutofbuildings

• Forserviceproviders:Givesinformationaboutpeopleflow,andhowdifferentfactors are affecting it (such as weather, street maintenance, well-litenvironments)butalsohowreachablethelocationis,howeasyitistoaccessbydifferentmodesoftransport,thisinformationwillhelptheserviceproviderinmakingsurethatresourcesandopeninghoursaswellasservicequalityiskeptonanoptimallevel.

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Channels

Themaincommunicationchannelwillbeawebsite.Customerrelationship

Thecustomerrelationshipwillbethroughcityinterestgroups,marketingandevents,andworkshops.Revenuestreams

The Smart Connected City Environment will have no revenue streams as the datacollectedbythecitywillbeopendatafreetousebyprivateactors.Keyresources

• Physicalassets(opticalfibernetwork,wirelessnetwork,electricity,sensors)• Humanresources• DigitalIOTPlatform• Technologycapability

Keyactivities

• Selectandimplementsensorsfortrafficandpeopleflowdatacollection• IntegrateandsecuredatatransfertoIOTplatform• Analysetrafficandpeopleflows,• Select,testandevaluatemethodstoreducetransportemissions• Steerstreetlights,trafficlightsandmaintenancetosecuregoodandsecureflow

oftraffic/people.Keypartnerships

• Stokab• Cityauthority(user)• Technologyproviders(sensors,platforms)• Municipalgovernment(policydecisiontotrafficplanning)

Coststructure

• Fixed costs (depreciation of fixed assets, salaries, technological infrastructureandrunning(overhead-)costs,maintenance)

• Variablecosts(marketing,energy,etc.)

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BarcelonaSmartmeterinformationanalysisandactuators

Measurerelated:5.3Industrypartners:EndesaSummaryofBusinessModel:Thecreationofa“DataHub”,namedMultiserviceConcentrator(MSC),whichwillserveasadatanodecollectingandmanagingcitydata.Thedatawillbeusedtointegrateandoptimiseseveralutilities,toobtainincreasedefficiencyininfrastructures,andtocreatenewsmartgridservices.

Customersegments

• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures

• Tenants/citizenswhowanttooptimisetheirutilities’consumption• Private sector / third parties that want to develop new business model

developmentusingthedatacollected

Valuepropositions

ThevaluepropositionoftheDataHubisthreefold:• tocontributetothecity’sdevelopmentinenergyefficiency• toprovidegreaterawarenessofenergyconsumptionandenablingtenantsto

managetheirownconsumption• the development of new added value energy services and apps using the

informationcollected

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Fixedcosts:Hardwarerelatedcosts(serversandphysicalinfrastructuremaintenance),Softwarerelatedcosts(platformmaintenanceanddatamanagement),

Personnelrelatedcosts(salaries)(2)Variablecosts:Salesandmarketing

Tochargesomecostforthesmartmetersandsensorsandtheirinstallationandmaintenance.Tochargemoreflexibletariffstructures.Thedata

collectedcanbeexpandedintootherapplicationsandservices

1.Localauthorities/citymanagersandadministrators

2.Utilities’companies3.Thirdpartytechnical

companies

CollectingandupdatingdatatotheplatformandtransferringandmanagingthecitydatafromtheMSCtotheplatformandfromtheplatformtotheSmartcityAppsandServices

(1)tocontributetothecity’sdevelopmentinenergyefficiency

(2)toprovidegreaterawarenessofenergyconsumptionandenablingtenantstomanagetheirown

consumption(3)thedevelopmentofnewaddedvalueenergyservicesandappsusing

theinformationcollected

Thenewenergyservicesandappsofferthe

opportunitytohaveamoredirectconsumer-orientedbusinessmodel

andredefinetheutility/customerrelationship

(1)Publicadministration/municipalities

(2)Tenants/citizens(3)Privatesector/third

parties(1)Physicalassets(includingtechnologicalinfrastructure

andsoftware)(2)Humanresources

(technicalknowledgeandexpertise)

CityPlatformGrowSmarter

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Channels

The main communication channel will be the City Platform, called GrowSmarterPlatform,whichwillprovidedirectaccesstotheenergydata.TheMSC,installedatthesecondary substation, collects data from the different field components and thentransfersittotheGrowSmarterPlatformthroughacentralsystem(EndesaPlatform).Themaincommunicationtechnologiesare:Radiofrequency(RF)andPLC(PowerLineCommunication).Customerrelationship

The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams

Smartmeters and the integration andoptimizationof the infrastructureof differentutilities offers several opportunities to create new revenue streams. First, they cancharge some cost for the smart meters and sensors and their installation andmaintenance.Itcaneitherbeaone-timesaleorthrougharenting/leasingschemethatwill allowcustomers touse the smartmeters (whichwill in turnallowcustomers toreducetheirenergyconsumptionandcost).Second,thenewintegratedinfrastructureandmore accurate information on energy consumptionwill allowutilities to chargemoreflexibletariffstructures.Inthissense,thebenefitsintermsofenergyefficiencyand climate changemitigation thanks to abetter integrationof energydemandandenergygenerationcanbring importantefficiencies tomunicipalities, tenantsandthesocietyasawhole.Lastly,thedatacollectedbytheDataHubcanbeexpandedintootherapplicationsandservices,whichwillallowutilitycompaniestohaveadditionalrevenuestreams.Keyresources

(1)Physicalassets,includingtechnologicalinfrastructureandsoftware:a.SmartMeters(electrical,gas,water,heating,cooling)b.Urbanandenvironmentalsensorsandactuatorsc.DataHub,composedofanMSCinstalledatthesecondarysubstationd.Platforme.EnergyServicesandApps(2)Humanresources(technicalknowledgeandexpertise)Keyactivities

-Collectingandupdatingdatatotheplatform-TransferringandmanagingthecitydatafromtheMSCtotheplatformandfromtheplatformtotheSmartCityAppsandServices

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Keypartnerships

-Localauthorities/citymanagersandadministrators-Utilities’companiesandthirdpartytechnicalcompaniesCoststructure

(1)Fixedcosts:-Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenance-Softwarerelatedcosts:platformmaintenanceanddatamanagement-Personnelrelatedcosts:salaries(2)Variablecosts:-Salesandmarketing

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CologneSmartMetersandActuator

Measuresrelated:5.3Industrypartners:AGT,RheinEnergieSummaryofBusinessModel:Many of resident houses or flats will be equippedwith SmartMeters or evenwithSmartPlugsmeasuringthepowerandheat/coolingconsumption.Thiswillinformthetenantsabouttheirconsumptionsandfostertheirawarenessforenergyconsumptionreduction.

Customersegments

• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures

• Tenants/citizenswhowanttooptimisetheirenergyconsumption• Private sector / third parties that want to develop new business models

developmentusingthedatacollectedValuepropositions

ThevaluepropositionoftheSmartMetersandActuatoristwofold:• tocontributetothecity’sdevelopmentinenergyefficiency• toprovidegreaterawarenessofenergyconsumptionandenablingtenantsto

managetheirownconsumption

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Channels

Themaincommunicationchannelwillbeemailandtelephone.Directlytotheserviceprovidersortotheutilitycompany(dependingonthebusinessmodelspecification).Customerrelationship

The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams

Thenewinformationonenergyconsumptionwillallowutilitiestochargemoreflexibletariff structures. In this sense, thebenefits in termsofenergyefficiencyandclimatechange mitigation thanks to a better integration of energy demand and energygenerationcanbringimportantefficienciestomunicipalities,tenantsandthesocietyasawhole.Lastly,thedatacollectedisexpectedtoreducetenants’energyconsumptionbygivingawarenessoftheirconsumptionpatternsandcomparisonswithothers.Keyresources

(1)Dataprovidedbyhardwaredeployedathomes(2)Humanresources(technicalknowledgeandexpertise)

Keyactivities

-Collectingandupdatingdatatotheplatform-Transferringtheinformationtotenantsand/orutilitycompanies

Keypartnerships

-Localauthorities/citymanagersandadministrators-Utilities’companiesandthirdpartytechnicalcompanies-Privateusers:tenantsand/orcitizens

Coststructure

(1)Fixedcosts:-Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenance-Softwarerelatedcosts:platformmaintenanceanddatamanagement-Personnelrelatedcosts:salaries(2)Variablecosts:-Salesandmarketing

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Solution 6. Waste Heat Recovery

Citiesconsumeovertwo-thirdsoftheworld'senergyforfeedingtheireconomic,socialand human activity. Moreover, especially in cold weather locations, energyconsumptionspikesduring fallandwinterperiods.At thesametime,severalhumanactivitiesproduceexcessheatwhileoperating.However,thisheatexcessisrarelyusedbecause the distribution grids are too small or because the heat provider has amonopoly.OpenDistrictHeatingisaconceptforenergyre-usetoadistrictheatingnetworkoradistrictcoolingnetwork.TheOpenDistrictHeatingconceptmakesitpossibletorecoverwasteheat(forexamplefromDatacentersandSupermarkets)thatotherwisewouldbelostviacoolingtowerstotheatmosphere.Inthissolution,wasteheatisbeingrecoveredfromarangeofdifferentsourcesanddeliveredtothedistrictheatingsystemtoprovideheattowarmupbuildings.InthecaseofStockholm,theDistrictHeatingsystemsuppliescentrally-heatedwatertoproperties.Hotwateristransportedinasystemofwell-insulated,high-pressurepipes.Thewaterisbetween65and120degrees,dependingonthetimeofyearandweather,andissuppliedtosubstationsineachproperty.Theseunitsarefittedwithheatpumpsthatusethehotwatertoheatbuildings’radiatorsandhotwatersupply.Districtheatingcurrently supplies half of Sweden’s total heating requirement and it continues toexpand.Fortumsuppliessome90percentofgreaterStockholm’sheatingneedswithdistrictheating.AsforBarcelona,theDistrictHeatingsystemiscalledDistriclima.AndoperatesintheForumand22@districts.DistriclimahasoneproductionplantintheForumarea-thatusessteamcomingfromaurbanwastetoenergyplantandrefrigeratestheequipmentswithseawater-andasecondproductionplantinthe22@district.Itprovidesheattomorethan90buildings,savingmorethan17,500annualtonsofCO2andthisabout60%byreducingtheconsumptionoffossilenergies.Nowadaysover870,000m2ofroofareheatedwithcontractedpowerover55MWto80MWforheatandcold.ConclusionsregardingtheBusinessModelsrelatedtosolution6.

Cities have plenty of heat excess sources, from supermarkets to data centers orindustrialactivity.Infact,manyoftheseactivitiespaytogetridoftheextraheat.Thistraditionalmodelcanbechallengedandimprovedbyusingtheextraheattoretrofittheexisting District Heating system. The business model of letting the district heatingoperatorbuyexcessheatthroughaplug-andplayheatpumpsolution,andthensellittothecustomersneedingheatisacompletelynewbusinessmodelthatcouldopenupthe district heating systems to an openmarket of heat exchange. Thiswill allow totransformcoolingcostsintorevenuestreamsfromheatrecovery.Thebusinesscasewillimprovefurtherinthenearfuturewhenfreezersarerenewed,usingCO2-technology,whichdeliverswasteheatat80°C.Thisheatcanbefeddirectlyintotheoutwardstream.This system can help achieving environmental goals by leveraging on existing heatexcessandrecoveringittofeedtheheatingsystem.

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Regarding the scalability and replicability of the solution, we should mention somechallengesahead.Whileitistruethatthemajorityofcitiesaroundtheworldhavethenecessity of providing heat for housing and water supply, the solution faces twochallenges.Firstofall,thereisthepossibilitythatnewandfuturelow-energybuildingswillbecompletelyindependentfromheatgrids.Byinvestinginmoreisolatedstructuresandhyperlocalenergyproduction(e.g.solarpanels),buildingscouldgenerateenoughheatforthemselves.Ontheotherside,ifthepreviousstatementisnotapossibility–forexample,duetoextremeweatherconditions-thereisanotherchallengetobesolved:theexistenceof aDistrictHeating system.This fact implies that the replicabilitywilldepend on the existence –or not- of a District Heating to leverage on heat excessproducednearenoughtobeeconomicallyviabletoinjectintothesystem.Finally,intermsofjobcreation,Solution6-Wasteheatrecoverycanbebeneficial.Sincetheimplementationofthesolutionrequiresphysicalinfrastructure,workplaceswillbecreated during the implementation face. Besides, the system will need specificmaintenancethatwillderiveinmorejobcreation.

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StockholmOpendistrictheatingusingwasteheat

Measuresrelated:6.1.1and6.1.2Industrialpartners:FortumShortDescription: Wasteheatwillberecoveredfromdatacenters(Installationofheatrecoveryequipmentin order to recover heat from the cooling process of a datacenter to the districtheating/coolingsystem)andfridgesandfreezersinsupermarkets(Installationofheatrecoveryequipmentinordertorecoverheatfromthecoolingprocessofasupermarkettothedistrictheating/coolingsystem).

Customersegments

• Datacenters• Supermarkets• Switchgearsubstations• Otherbusinessetc.

Valuepropositions

• FortheCity/Community:Heatingforthecitizensisprovidedfromrecoveredheat

• ForCustomers(heatsuppliers):o ImprovedOPEXforcoolingandgainrevenueforexcessheato Improvedcooling standardand redundancy (often thecase sinceheat

pumpinvestmentisanaddontoexistingcoolingpark)o Environmentalprofilingandcontributiontoamoresustainablecity

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Channels

• Directsales• Website• ExistingDistrictheating/coolingcustomers• Datacentercoolingequipmentsuppliers(resellerofOpenDistrictHeating)• Datacenternetworks

Customerrelationship

• OnebyOne• Marketing&Publicity

Revenuestreams

• Districtheatingsale• Avoidedotherheatproductioninourownplants• MonthlyconnectionfeetotheDistrictHeatingnetwork(duetoourpipeinvestments)• Marketing,torecoverheatinbigscalestrengthentheprofileoftheCompany

Keyresources

• PhysicalassetsinformofDictrictHeatingnetwork• Human resources in form internal knowledge where and how to connect a

productionunittoD.H.network• Costefficientprocesstoconstructofpipes• Transparentandsaleablebusinessmodelandpricestructuretothemarket

Keyactivities

• Installationofproductionunitatthesupplier(oftenheatpumps)• Buildingpipestoconnectproductionunittothedistrictheatingnetwork• Startoperation• Deliverheat(Supplier)• Paymenttothesupplierfordeliveredheat(FortumVärme)

Keypartnerships

• Frameagreements/partnersforconstructingpipes• Permitsandusufructagreementstowardsthecityandfacilityowners• Datacentercoolingequipmentsuppliers(resellerofOpenDistrictHeating)• Districtheatingandcoolingcustomers

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Coststructure

• Depreciationofpipeinvestment• Paymentfordeliveredheat• Administrationcosts

BarcelonaSmartlocalthermaldistricts

Measuresrelated:6.3Industrialpartners:Irec,BarcelonaCityCouncilShortdescription:Re-designationofanindustrialbuilding(CalAlier)intoaninnovationcenterwithanearlyzeronetenergybuilding(NZEB)criterion.Thisfacilitywilluse:

• On-siteelectricitygeneration.Photovoltaicpower(85kWp)• Connectiontothedistrictheatingandcooling(DHC)networkthatrecoversheat

fromurbansolidwastetreatmentplant• Installation of an energy management system that is capable of optimizing

consumptionaswellasforecastingthebuildingload

The project uses a Public – Private Partnership framework industrial buildingrefurbishment in the city and it should be a reference for industrial buildingrefurbishmentinthecity.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

•Hardwarerelatedcosts•Personnel:Installationandsupervision

Thereductioninenergyconsumptionshouldleadtoreductionsintheenergybillthatshouldcompensatefortheinvestmentpayments

(1)Buildingowners(2)Facilitymanagers(3)Citymanagingthedistrictheatingsystem(4)Electricityretailers

(5)Constructioncompany(6)Architectsand

engineers

thecompletionofthewholeprojectandaperfect

coordinationofthewholesysteminthefacility

toachieveanearlyzeronetenergybuilding(NZEB)byusing

photovoltaicpanels,connectiontoDistrictHeatingandCoolingnetwork,andenergymanagementsystem.

(1)Privatesector:•Realestatecompanies•Constructioncompanies

•Architectsandengineeringcompanies

(2)Publicadministration

•Privatebuildings(1)Factories

(2)Officebuildings(3)Shoppingmalls

(4)Schools•Publicbuildings(1)Ministries(2)Hospitals(3)Schools

•Photovoltaicgenerator•Energymeter

•Distributionnetworkforheating&cooling

•ConnectionstotheprimarycircuitoftheDistriclimanetwork

•DHCnetwork•Electricchil lermachinescooled

byseawater•Buffertankofcoldwater

manufacturers’distributors,contractorsandarchitects

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Customersegments

Besidesrefurbishedindustrialbuildingsthissolutioncanalsobeimplementedat:

• Privatebuildings• Factories• Officebuildings• Shoppingmalls• Schools

• Publicbuildings

• Ministries• Hospitals• Schools

UsingthissolutioninstallationofcoolingtowersisavoidedasubsequentlyeliminatingtheriskofLegionnaires'disease.Valuepropositions

Thissolutionaimistoachieveanearlyzeronetenergybuilding(NZEB)byusingphotovoltaicpanels,connectiontoDistrictHeatingandCoolingnetwork(thatrecoversheatfromurbansolidwastetreatmentplant),andenergymanagementsystem.Channels

Theprocurementofthematerialsandequipmentisdonethroughthemanufacturers’distributorsinthecountryandinstalledbycontractorsworkingundersupervisionofthemaincontractorandarchitect.Customerrelationship

• Privatesector:• Realestateandconstructioncompanies• Architectsandengineeringcompanies

• PublicadministrationThesefirmscanpromotetheinstallationofthissolutionalsoamongfinalusersasitwillreduce energy consumption and therefore energy associated costs. It is howevernecessarythatfacilitieshavesomerequirementssuchasbeinginadistrictwithDHCandclosetotheenoughtotheseaforwatercooling.

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Revenuestreams

Thereductioninenergyconsumptionshouldleadtoreductionsintheenergybillthatshouldcompensatefortheinvestmentpaymentsforequipment,engineeringservices,construction,andworks.Keyresources

• Photovoltaicgenerator installedon the rooftop, tryingmaximizearchitecturalintegrationwithminimallossofsystemperformance

• Energymeterwillbeinstalledattheentranceofthephotovoltaicsysteminordertodeductanyenergygeneratedwhichcouldbeconsumedbytheconventionalgrid.

• Distributionnetworkforheating&coolingwillbeinstalledbeneaththestreetadjacenttothebuilding

• ConnectionstotheprimarycircuitoftheDistriclimanetwork• TheDHCnetworkwillsatisfytheheatingandcoolingdemandsofthebuilding

(coolingcapacityof31MWandaheatingcapacityof20MW).Districlimausesmainlythesteamproducedfromtheincinerationofmunicipalwaste(MSW)inthenearbytreatmentplantTERSA.

• Electricchillermachinescooledbyseawater• Buffertankofcoldwaterof5,000m3whichstorescoldovernightanddisperses

it throughout the day. Hotwater is supplied at temperatures over 90ºC andreturnsat60ºC,whilecoldwaterissuppliedatatemperaturebetween4and5°Candreturnsatabout14°C.

Keyactivities

Toachievethedesiredearlyzeronetenergybuilding(NZEB)isnecessarythecompletionofthewholeprojectandaperfectcoordinationofthewholesysteminthefacility.Keypartnerships1

Thesolutionneedsthecollaborationof:• Buildingowners• Facilitymanagers• Citymanagingthedistrictheatingsystem• Electricityretailers• Constructioncompany• Architectsandengineers

1 So far the owner of the business is not yet defined so it is not clear which company or agent will lead the business investing trying to capture the value.

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Coststructure

• Hardwarerelatedcosts• Personnel:Installationandsupervision

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Solution 7. Smart Waste Collection

Wastehandlinginresidentialareasanddenseinnercitiesisagrowingchallengetoallcities.Mostcitiesstillcollectwasteusingtruckspickingupbinsorbagsincloseproximityto residential buildings, causingnoise andemissions. Sorting and recycling areoftendifficult.Usingdifferent coloredbags fordifferent fractions, thrown in the samebinmakes sorting easy and reducesneed for storingwaste at home. Thebags are thensortedautomatically.Thisreducesthenumberofbins,thedrivingandalsoimprovesthesorting.Thesystemcaneasilybedevelopedtoincludeallkindsofwaste,thusreducingtheneedforspecialbinsforpaper,metal,plasticandimprovethesortingascitizensdonotneedtogotodifferentcollectingbins.Inaddition,aSmartWasteCollectionsystemcandramatically reducethenumberoftrucksforwastecollection.Differentfractionsofwasteareputinbagswithdifferentcolorsinthesamecollectionbin.Itisthentransportedtoasortingfacilitywherethedifferent fractions are separated. Since the automatedwaste collection systemusesvacuumtotransportthebagsthroughundergroundpipes,thereisnoneedforfurtherusage of trucks. Obviously, it has environmental implications (reduction of pollutingvehicles),butalsoforlifequality(lessnoiseinthestreet,especiallyatnight).Asforthecontext,atthestartofthe20thcentury,eachpersoninSwedenthrewaway25-30kgofwasteperyear;todaythatfigurehasrisento500kg.InStockholm,theareaof wastemanagement is regulated and guided by laws, plans and strategies at EU,national, regional and local levels. This wastemanagement legislationmay have animpact on the waste management plan. This may have great significance for thefulfilment and follow-up of the set objectives, particularly if the distribution ofresponsibilityforwastechanges.ConclusionsregardingtheBusinessModelsrelatedtosolution7.

One of the most interesting features and benefits of this solution is the ability topersonalize the information and nudging more sustainable behaviors by puttingincentives on citizens.Using smart keys togetherwith color sensors and scales, it ispossibletoregisterdowntoindividualhouseholdstheamountandtypeofwastethrownat any givenmoment. This offers the opportunity to present statistics for individualhouseholds, buildings or clusters of buildings, visualized in the Active house /HomeEnergyManagementSystems/SmarthomesysteminSmartSolution2. Itcanalsobeusedasabasisforpayment.Regardingthescalabilityandreplicabilityofthesolution,automatedwastecollectingsystems aremore easily installed in new built residential areas as the costs can beincludedinoverallinfrastructurecosts.AutomatedWasteCollectionsystemsareinitiallymoreexpensivethantraditionalwastehandlingsystemsbutoffersignificantadvantageswheninplace.Thetrafficforcollectingwastecanbereducedwith90%andspacecanbeclearedinneighborhoodsasthereisnolongeraneedforstoringgarbageinmanydifferent places in the area. All waste is transported underground in pipelines to a

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collectingstationlocatedintheresidentialareawitheasyaccesstocollectionvehicles.Inaddition,theneedsamaturemarketintermsofrecyclingindustry.Theydependonthecityhavingarecyclingplanttosendtheseparatedgarbagebags.Finally, in termsof jobcreation,Solution7 -SmartWasteCollection is job intensive,especiallyduringimplementationworksfordeployingthenecessaryinfrastructure.StockholmAutomatedwastecollection,monitoringandreuse

Industrialpartners:EnvacMeasuresrelated:7.1;7.2and7.3.Shortdescription:Residentsseparatetheirwasteintoseparatecolour-codedbags.Whentheresidentputshis/herwasteintotheEnvacwasteinlet,theuseris identifiedalongsidethetype(bycolourofbag)andweightofwastebeingdeposited.Thedifferentwastestreamsarethentransportedusingsuctionthroughanundergroundpipenetworktoacollectionstationlocatedoutsidethecentralcityarea.The systemwill be able to identify the amount and type of waste thrown away byindividualusers.This informationcouldbeused toprovide feedback to theuser, forinstance,onindividualrecyclingpatterns.

Customersegments

• Publicadministration:CityCouncils

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

•Hardwarerelatedcosts:wasteinlets,colour-codedbags,etc.

•Softwarerelatedcost:softwareprogrammers•Personnel:wastecollectors

Theonlypotentialsourceofrevenuescanbebiogassellingtobeusedtofuelpublictransportation.

(1)CityCouncil(2)Residents(3)Company

Toseparatecorrectlytheirwasteintoseparatecolour-

codedbags.

•Improvesqualityoflifelimitingtheuseofinnerand/orouter

surfacesforwastebinsandcontainers.

•Reducesenvironmentalimpact.•Promotessustainableeconomicdevelopment.Thesystemwillprovidedatatousersinordertoimproveenvironmental

behavior

(1)Publiclocaladministrations

Publicadministration:CityCouncils

•Wasteinlet,undergroundwastetransportation,opticalsortingtechnologies,smart

metering,identificationsensors,separatecolour-codedbags

•Softwaremanagement,analytictoprovidefeedbacktoend-users

publicprocurementlong-termCompanywithalong-

termcontract

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Valuepropositions

Thesolution:• Improvesqualityoflifelimitingtheuseofinnerand/oroutersurfacesforwaste

binsandcontainers.• Reducesenvironmentalimpact.Wastecollectiontrafficwillbereducedby90%

with an accompanying reduction in CO2 emissions, noise and pollution.UndergroundwastetransportationreducesemissionsofCO,HC(hydrocarbons),NOx,particlesandSO2comparedtotheconventionalbincollectionusingrearloadinglorry.Processing collected foodwaste as biogaswill greatly reduceGHG emissionsfromthewaste.

• Promotessustainableeconomicdevelopment.Thesystemwillprovidedatatousersinordertoimproveenvironmentalbehavior

Moreoverany foodwastecollectedwillbeprocessedasbiogas.Thatbesidesgreatlyreducing GHG emissions from the waste it will in turn be used to fuel publictransportation.Channels

Theprocurementoftheserviceshouldbedonethroughapublicprocurementlong-termcontractwithonecompanytoprovide:

• Engineering• Construction• Equipmentinstallation• Managementofthesystem• Wastemanagement• Biogasproductionwithprocessedfoodwaste.

That will require collaboration between equipment manufacturer, engineeringcompanies,architects,constructioncompanies,energycompanies,etc.Customerrelationship

• PubliclocaladministrationsRevenuestreams

Theonlypotentialsourceof revenuescanbebiogassellingtobeusedto fuelpublictransportation.Keyresources

Therequiredresourcesare:

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• Hardware: waste inlet, underground waste transportation, optical sortingtechnologies,smartmetering,identificationsensors,separatecolor-codedbags

• Software:softwaremanagement,analytictoprovidefeedbacktoend-usersontheirwastesegregationhabits

Keyactivities

Foraproperfunctioningofthesystemiskeythatresidentsseparatecorrectlytheirwasteintoseparatecolor-codedbags.

Keypartnerships

Thesolutionneedsthecollaborationof:• CityCouncil, the client thathas toofferwaste collectionmanagement to the

residentsofthecity• Residents,whoshouldseparatewasteindifferentcoloredbags• Company, in chargeof carryingout theworks providing a service to theCity

Council

Coststructure

• Hardwarerelatedcosts:wasteinlets,color-codedbags,etc.• Softwarerelatedcost:softwareprogrammers• Personnel:wastecollectors,

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Solution 8. Big Data Management

Building an open data integration platform for all types of city related data (fromsensors,mobiledevices,andothercitydata)offersauniqueopportunitytointerrelateconceptsandextractknowledgethatisnotalwaysapparentwithoutcrossingverticaldomainfrontiers.Beingabletoopenlyaccessthisraworaggregateddataisinvaluableasitcreatesnewbusinessopportunities;itoptimizestheoperationalcostandresourceallocation for companies thatmake use of it, and fosters the appearance of betterservicesforallcitystakeholders.Trafficandcommunicationofpeople,goods,andvalues iscrucial for thecityand itsgrowth.Management,planning,andcontrolofphysicalinfrastructureandbuildingsarecriticalforcitizensinparticularandtheeconomyingeneral,andarepartofwhatwillmakeacitysmartandattractiveforliving,working,andinvesting.Abetterandmorecarefulmanagementoftheeffectsofcityactivitiesontheenvironmentandclimateisoneofthemostimportantdimensionsforthesustainabilityandresilienceofourcities.These are just a few examples of complex processes that can be more deeplyunderstood, analyzed, and optimized based on integrated and openly availableinformation.Recently,Stockholm’sCityCouncilformallyadoptedastrategyforthecitytobecomethesmartestandmostconnectedcityintheworld.Thestrategyinvolvesauniquefocuson sustainability. The goal is for Stockholm to become economically, ecologically,democraticallyandsociallysustainablethroughinnovativedigitalservices,transparencyand connectivity. The strategy's main focus is to fully take advantage of theopportunitiesthatariseswithdevelopmentinareassuchastheInternetofThingsandbigdataanalysis,aswellastotaketheCity'sworkwithopendatatothenextlevel.ThecityofColognehasprovidedopendatasince2012andwasabletogatherextensiveexperienceinthetechnicalprovisionofpublicdatabasesduringthistime.Inordertomeet future and growing requirements, the city of Cologne decided in 2016 toimplement theexperienceacquired so far in twoupdate cycles. The cityof Colognebelieves data is a source ofmassive potential value for cities to enable sustainablegrowthandtackleenvironmentalandeconomicchallenges.Bytechnologicallyenablingthecitywehopetotapintothispotentialvaluetocreateafully-integrated,strategically-designedsmartcity.In2017,Barcelonalaunchedthe“Barcelona,DigitalCity”plan.Theaimbehindtheplanis to develop an open and accessible public city-data infrastructure which allowsenterprisestonetwork,whereprivacyandself-determinationofdataareprotectedandacademia, industry and citizenship involved,making Barcelona inclusive, ethical andtechnicallysustainable.ItiscurrentlypossibletomeasureandobtainquantitativedataonmanyaspectsofBarcelonainordertocomplementexistingviewsonthecity,usingaquantitativeapproach.TheobjectiveistopromoteaninternalculturalchangeintheCityCouncilandtostartusingtechnology formanaging large (andsmall)volumesofdatatoinformdecision-makingbythemunicipalorganizationalstructure.Thistypeofdatashouldhelpthecitycounciltofacechallengessuchasaccesstohousing,mobility,pollutionandcity-residentparticipationinmunicipalpoliticallife,withfirst-hand,up-to-dateknowledgeofthecity.

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ConclusionsregardingtheBusinessModelsrelatedtosolution8.

WhilethepowerofBigData,OpenDataandDatascienceiswidelyacknowledgedacrossindustries–includingthepublicsector-itisalsotruethatmanyorganizationsarefacingseveralchallengestoderiverealvaluefromdata.ThebenefitsarisingfromBigDataishugelydependentnotjustonhowtheoutputsofdataanalysisareusedbutalsoiftheoutputsareusedatall.The fact thatanorganizationhasaBigDataplatform,dashboards,analytics teamorspecificsoftwareisuselessifdecisionsaretakenthesamewaythereweretakenbeforetheexplosionofdata.Inthatsense,thebusinessmodelsinthissolutionwillproducebenefitsonlyifhumanschangetheirdecisionmakingculture.Therefore,technologyoroperations is not themain problem from the businessmodel point of view but thehumanfactoris.

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BarcelonaBigConsolidatedOpenDataPlatform

Measuresrelated:8.1.;8.2.;8.3and8.4.Industrialpartners:BarcelonaSupercomputingCenter,CellnexShortdescription:Fastandeasyoverviewofthecurrentsituationinyourcityconcerningtraffic,energyandenvironment.Dataandinformationcanbeusedforcityplanning,trafficandenergymanagement,andenvironmentalmonitoring.Datacanalsobeprovidedonopendataplatformsofcities.Allurbandatacanbeincludedindependentlyofthemanufacturerofthedataprovider.ItalsoincludesanAPI(ApplicationProgrammingInterface)forsmartlighting systems implemented by measure 5.2 able to communicate the lightingmanagement system with other applications (e.g. traffic management, weathersystems)andsoftwareplatformsinordertoexchangedatabetweensystems).Measures8.2and8.3aretechnicallytiedtogether,giventhattranslatingaqueryfromSPARQL to the correct API calls requires knowing the correctmapping between theUrbanModeland theconcretedataschema.Conceptuallynevertheless, theSPARQLquerygeneratedbytheexplorationandquerytoolcouldbetranslatedtoanyotherdatarepository (ormultiple repositories), not only to a REST API as in this case throughmeasure8.4.EvidentlythepartoftheSemanticAccessLayerthataccessestheactualdatawouldneedtobemodifieddependingonthestoragetypeandaccessmodes.Thismeansthat,while8.1,8.2,8.3and8.4arepresentedtogether,8.4canbeimplementedallalonethesameway8.1-to-8.3can.TheintendedusersofthesolutionimplementedbyMeasures8.2and8.3arespecialistsin themodeleddomains, in this casemobility, energy, and integrated infrastructureexperts.Theuserprofilesisintendedtobespecialistsanddecisionmakersmostlyfromthe public administration, but also from large enterprises whose business spans, orreliesoninputfrom,morethanoneverticaldomain.Anurbanplannerortheelectricitycompany would need to understand about mobility, traffic, energy, and urbanstructures,tomakethebestdecisionintermsof,forinstance,wheretoplaceelectricchargingstations.

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Customersegments

• Publicadministration:

a. Internaluse(CityCouncilsowningtheplatform)b. Externaluse(otherCityCouncils)

• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata

Valuepropositions

ThevaluepropositionoftheBigConsolidatedOpenDataPlatformistoofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-making.Offeringintegrated data access and semantic query for heterogeneous data sets. Offering ageneralsemanticmodeltowhichdatafromothercitiescouldbemoreeasilymappedtoforintegrationpurposes.Channels

Themainchannelisawebsitethatservesasacentralizedvisualizationtoolfordifferentdatasets. Web-based tool can be freely accessed. Semantic model available fordownloadanduse.

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Customerrelationship

Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone.Revenuestreams

TheplatformcanbelicensedbothtoCityCouncilsandurbanmanagementcompanies.Keyresources

The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Servertohostthemodelandtheexplorationandquerytools.Theimplementationusesopensourcesoftware.Keyactivities

Internal process for validating and assessing the accuracy and quality of datasets.Secondly,aspecificprocess foruploadingandupdatingexistingdata in theplatformrepository.Thirdly,potentialinteractionwiththecustomertoderivespecificinsights.Developmentoftheontology.Developmentofthesemanticaccesstodataintegratedin8.4viaaWeb-basedexplorationandquerytool.Developmentofanefficientsemi-automaticmappingtoolthatrecommendsdatatomodelmappings.Keypartnerships

Theplatformcanbehostedinsidetheorganizationserversoroutsourcedtothird-partycloud hosting providers. In addition, the platform needs a strong commitment ofinternalmanagersfromtheCityCouncilthatshouldprovidetheirsiloedinformationforvisualizationandanalysispurposes.Coststructure

- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-

updatingprocesses.

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CologneUrbanCockpit

Measuresrelated:8.1,8.2and8.3Industrial partners: [ui!] - The Urban Institute, AGT, Ampido, Cambio, Dewog, KVB,RheinEnergieShortdescription:Fastandeasyoverviewofthecurrentsituationinyourcityconcerningtraffic,energy,environment and what is the impact of smart measures concerning the 20/20/20climate protection objectives. The Web-Application gathers its data from theUrbanPULSE data backend but could also be combined with other urban big databackends. Data and information can be used for city planning, traffic and energymanagement, and environmental monitoring and for optimization by exploitinghistorical data and to detect unusual situations. All urban data can be includedindependentlyofthemanufacturerofthedataprovider.TheTrafficpartprovidesrealtime information about current traffic flow in the city. It gathers its data from theUrbanPULSEdatabackendandtrafficsensorsinstalledaroundthecitywhichcapturethecurrenttrafficflow.

Customersegments

• Publicadministration:a. Internaluse(CityCouncilsowningtheplatform)b. Externaluse(otherCityCouncils)

• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdata

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

RevenueStreams

Publicsector

Privatesector

Internalprocessforvalidating/assessing

datasets.Specificprocessforuploadingandupdatingdata.

Potentialinteractionwiththecustomer.

Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone

TheplatformcanbelicensedbothtoCityCouncilsandurbanmanagementcompanies

websitethatservesasacentralizedvisualizationtoolfordifferentdatasets.

toofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-making

CostStructure

HardwareSoftwarePersonnel

-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.

-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.

technologyprovidersanddataproviders,publicauthoritiestoincentivize

collaboration,privatere-usersofdata.

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c. NewbusinessmodelsusingnewavailabledataValuepropositions

ThevaluepropositionoftheUrbanCOCKPITistoofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-makingandtomonitortheimpactofsmartcitymeasuresontheclimateprotectionobjectives.Channels

Themainchannelisawebsitethatservesasacentralizedvisualizationtoolfordifferentdatasets.Customerrelationship

Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone.Revenuestreams

The web-application can be licensed both to City Councils and urban managementcompanies. It is used only in combination with an urban big data backend like theUrbanPULSE.Keyresources

Theassetsrequiredtomaketheweb-applicationworkcanbeseparatedinthreeareas:(virtual)hardware,softwareandpersonnel.Keyactivities

Internal process for validating and assessing the accuracy and quality of datasets.Secondly,aspecificprocess foruploadingandupdatingexistingdata in theplatformrepository.Thirdly,potentialinteractionwiththecustomertoderivespecificinsights.Keypartnerships

The web-application could be hosted inside the organization servers or can beoutsourced to third-party cloud hosting providers. Usually it is hosted on a cloudsolution. Inaddition, theplatformneedsa strong commitmentof internalmanagersfromtheCityCouncilthatshouldprovidetheirsiloedinformationforvisualizationandanalysispurposes.Coststructure

- (Virtual)Hardware related costs: servers andphysical infrastructure for valuepropositiondelivery.

- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.

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- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.

StockholmBigConsolidatedOpenDataPlatform

Measuresrelated:8.1Industrialpartners:IBMShortdescription:Byconsolidating,aggregatingandusingexistingmobilephonedata theplatformwillgenerate a new base for innovation to support a new generation of management,controlandpolicies.

Customersegments

• Publicadministration:a. Internaluse(CityCouncilsowningtheplatformb. Externaluse(otherCityCouncils)

• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

RevenueStreams

Publicsector

Privatesector

Internalprocessforvalidating/assessing

datasets.Specificprocessforuploadingandupdatingdata.

Potentialinteractionwiththecustomer.

Contactformwithdifferentoptionsforcommunicating:

fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsite

ortheavailabledata.E-mail

SocialNetworks

Bydefinition,OpenDataplatformsarefreeforusage.However,onecantakeintoaccounttheincreasedefficiencyinserviceandvalue

propositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.publicandprivatedecision-makerscanreducerisksassociatedwiththeiroperationalorstrategicdecisionsandthusincreasingprofits

bybettertargetingandreducedcosts.

Openwebsitethatservesasacentralizedrepositoryfor

alldatasets.

Offeringmoreinformationaboutthecityinreusabledataformats.The

datasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).

CostStructure

HardwareSoftwarePersonnel

-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.

-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.

Technologyprovidersanddataproviders,publicauthoritiestoincentivize

collaboration,privatere-usersofdata.

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Valuepropositions

Thevaluepropositionoftheplatformisofferingmoreinformationaboutthecityandhowpeoplemovearoundit.Channels

Themain channel is anopenwebsite that serves as a centralized repository for thedatasets.ThedatasetscanbedownloadedinseveralformatsorservedthroughAPIstoconnectdirectlytoapplications.

Customerrelationship

Mainly through email and periodic meetings for improvements and innovationdevelopment.Revenuestreams

Bluemixisavailableforpurchasethroughthefollowingoptions:•Pay-as-you-go–Noupfrontpayment–Nolong-termcommitment–Payonlyforwhatyouuse–Usagechargesthatarebilledmonthlyinarrears•Platformusagesubscription–Discountedchargesascomparedtopay-as-you-goterm–Savingsthatarebasedonlevelofusageandlengthofcommitment•Platformsupportplans–Alluserstoreceiveaccesstoforumsupport–OptionalpurchaseforaccesstoIBMtechnicalstaff–Ticketingsystemwithdefinedresponsivenesslevels–Supportchargesthatarebasedonplatformusagecharges–Minimummonthlyfeeapplies–Supportaccessthatisavailableinselectedtimezonesandlanguages•Keyprerequisites:-BluemixrequiresanInternetconnectionandbrowser.

The developers are shielded from the underlying infrastructure. Bluemix can beaccessed and used as a Public PaaS, a Private PaaS or installed on premise by thecustomer.

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Keyresources

The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Thefirstonedealswiththephysicalneedsoftheplatformlikeserversforstorageanddatadelivery.WeshouldtakeintoaccountthatthephysicalinfrastructurecanbeinternallyassumedbytheCityCouncil(usingtheirprivateserversandstoragecapacity)orbythirdpartycloudsolutions.Thesecondkeyresourceissoftware.Inthiscasethisisthemorevisibleresourceofthemeasureandoneofthecriticaldeterminantsofsuccess.Keyactivities

Asmentionedbefore,severalkeyactivitiesarerelatedtodatamanagementprocesses.Firstofall,aninternalprocessforvalidatingandassessingtheaccuracyandqualityofdatasets.Secondly,aspecificprocessforuploadingandupdatingexistingdata intheplatformrepository.Keypartnerships

As described in key resources, the platform can be hosted inside the organizationserversoroutsourcedtothird-partycloudhostingproviders.Asawayofnurturingtheplatformwithusageinformationandpromotethereutilizationoftheavailabledata,theCityCouncilshouldpromotesomekindofpartnershipwithdatausers. Inthatsense,havingaclosecontactwiththemtoassesstheirneedsandsuccessesisvitalforkeepprovidingthevaluepropositionsandincreasetheirengagementwiththeplatform.Coststructure

- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-

updatingprocesses.

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CologneBigConsolidatedOpenDataPlatform

Measuresrelated:8.4Industrialpartners:[ui!]:UrbanPULSEShortdescription:By consolidating, aggregating and using existing and new sensor data frominfrastructure, trafficanduserswillgenerateanewbase for innovationtosupportanewgenerationofmanagement,controlandpolicies.

Customersegments

• Publicadministration:a. Internaluse(CityCouncilsowningtheplatformb. Externaluse(otherCityCouncils)

• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata

Valuepropositions

Thevaluepropositionof theplatform isofferingmore informationabout the city inreusabledataformats.Thedatasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

RevenueStreams

Publicsector

Privatesector

Internalprocessforvalidating/assessing

datasets.Specificprocessforuploadingandupdatingdata.

Potentialinteractionwiththecustomer.

Contactformwithdifferentoptionsforcommunicating:

fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsite

ortheavailabledata.E-mail

SocialNetworks

Bydefinition,OpenDataplatformsarefreeforusage.However,onecantakeintoaccounttheincreasedefficiencyinserviceandvalue

propositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.publicandprivatedecision-makerscanreducerisksassociatedwiththeiroperationalorstrategicdecisionsandthusincreasingprofits

bybettertargetingandreducedcosts.

Openwebsitethatservesasacentralizedrepositoryfor

alldatasets.

Offeringmoreinformationaboutthecityinreusabledataformats.The

datasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).

CostStructure

HardwareSoftwarePersonnel

-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.

-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.

Technologyprovidersanddataproviders,publicauthoritiestoincentivize

collaboration,privatere-usersofdata.

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Channels

Themain channel is an openwebsite that serves as a centralized repository for alldatasets.ThedatasetscanbedownloadedinseveralformatsorservedthroughAPIstoconnectdirectlytoapplications.Inaddition,theCityCouncilwillevangelizeabouttheuseof theplatformthroughcommunicationactivities (generalmediaandspecializedmedia),directlyto incumbents(reachingthroughemail)andorganizingpublicevents(forexample,hackatons).Customerrelationship

Theplatformhasacontactformwithdifferentoptionsforcommunicating:fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsiteortheavailabledata.Inaddition,itoffersseveralwaystocommunicatewiththeCityCouncil:emailorsocialnetworks,mainly.Allthecommunications(withoutsourcerestrictions)arecentralizedtothedesignatedunitthatdealswiththeplatformandthendistributedtothepersoninchargeofthespecifictopic(forexample,theunit/departmentmanagerincaseofnewdatasets).Revenuestreams

By definition, Open Data platforms are free for usage. However, one can take intoaccounttheincreasedefficiencyinserviceandvaluepropositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.Thankstomoreinformeddecisions,publicand private decision-makers can reduce risks associated with their operational orstrategic decisions and thus increasing profits by better targeting (better andmoretailoredoutcomes)andreducedcosts (bothcostrelatedtodataacquisitionandcostrelatedtofailedimplementations).Keyresources

The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Thefirstonedealswiththephysicalneedsoftheplatformlikeserversforstorageanddatadelivery.WeshouldtakeintoaccountthatthephysicalinfrastructurecanbeinternallyassumedbytheCityCouncil(usingtheirprivateserversandstoragecapacity)orbythirdpartycloudsolutions.Thesecondkeyresourceissoftware.Inthiscasethisisthemorevisibleresourceofthemeasureandoneofthecriticaldeterminantsofsuccess.Atthesametime,softwareresourcescanbesplit intwo main sub-resources: the user interface and the datasets. User interface is animportantfactorofsuccesssinceitcanhelporobstructthefindingandreusabilityofdata. Providing a good user experience is mandatory to properly deliver the valueproposition of offering information in reusable data formats: the availability ofmetadataassociatedwitheachdataset,theorganizationofdatasetsintherepositoryorasearchboxaresomeexamplesofspecificissuestotakeintoaccountwhendealingwith the user interface. In addition, datasets are the key resource of the platform

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because without them the platform cannot deliver its value proposition. It is alsoimportanttomentionthefactthatthesuccessoftheplatformisnotonlydeterminedbytheabsolutenumberofdatasetsavailablebutalsobyitsquality.Inthatsense,qualitycan be assessed frommultiple perspectives: from themethodological point of view(aggregation level, granularity of the data, accuracy of the data and so on) to theavailabilitypointofview(isthedatasetupdatedregularly?Isitinareusableformat?).Finally, another key resource is the personnel dedicated to themanagement of theplatform.At least onepersonhas tobedesignatedas responsible formanaging theplatformintermsofuploadingnewdatasetsandrespondingtoinquiriesfromusers.Keyactivities

Asmentionedbefore,severalkeyactivitiesarerelatedtodatamanagementprocesses.Firstofall,aninternalprocessforvalidatingandassessingtheaccuracyandqualityofdatasets.Secondly,aspecificprocessforuploadingandupdatingexistingdata intheplatformrepository.Keypartnerships

As described in key resources, the platform can be hosted inside the organizationserversoroutsourcedtothird-partycloudhostingproviders.Inaddition,theplatformneeds a strong commitment of internalmanagers from the City Council that shouldprovidetheirsiloedinformationforopensharingpurposes.Sinceseveralchallengesandbarriersareexpectedtoappear,havingpoliticalcommitmentasakeypartnershipcanhelpoutpacethispotentialproblems.Asawayofnurturingtheplatformwithusageinformationandpromotethereutilizationoftheavailabledata,theCityCouncilshouldpromotesomekindofpartnershipwithdatausers.Inthatsense,havingaclosecontactwith them to assess their needs and successes is vital for keep providing the valuepropositionsandincreasetheirengagementwiththeplatform.Coststructure

- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.

- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-

updatingprocesses.

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PRICING:

PricingBluemixBluemixisavailableforpurchasethroughthefollowingoptions:•Pay-as-you-go–Noupfrontpayment–Nolong-termcommitment–Payonlyforwhatyouuse–Usagechargesthatarebilledmonthlyinarrears•Platformusagesubscription–Discountedchargesascomparedtopay-as-you-goterm–Savingsthatarebasedonlevelofusageandlengthofcommitment•Platformsupportplans–Alluserstoreceiveaccesstoforumsupport–OptionalpurchaseforaccesstoIBMtechnicalstaff–Ticketingsystemwithdefinedresponsivenesslevels–Supportchargesthatarebasedonplatformusagecharges–Minimummonthlyfeeapplies–Supportaccessthatisavailableinselectedtimezonesandlanguages•Keyprerequisites:-BluemixrequiresanInternetconnectionandbrowser.

The developers are shielded from the underlying infrastructure. Bluemix can beaccessed and used as a Public PaaS, a Private PaaS or installed on premise by thecustomer.PricingUrbanPULSE

UrbanPULSEisavailableforpurchasethroughthefollowingoptions:• Monthly/yearlypaymentfortheplatform• Paymentforadaptionsandextensions

The developers are shielded from the underlying infrastructure.UrbanPULSE can beaccessedandusedasaPublicPaaSorasaPrivatePaaS.

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WorkPackage4.SustainableMobilitySolutions

Regarding the Business models related to Work Package 4, these are the mainconclusions:ThePublicAuthorityisnotcrucialfortheimplementationofthemeasures.Exceptforthecaseoftrafficmanagementmeasures,fortherestofmeasures,thepublicauthorityis not a key partner, meaning that without the municipality, the measure can beimplemented. But, as said, in the case of Traffic managementmeasures, without astrongpartnershipwith thepublicauthority, thebusinessmodels canbehard tobeimplemented,asthepublicauthoritywillbetheoneauthorizingtheuseoftrafficdata.For therestof themeasures,ofcourse, thepublicauthority is important,because ithelpsthesettlementofsomeofthemeasures,butassaid,oncethisisdone,theactivityrunswithouthavingthepublicauthorityasafrequentpartner.

Dataasamainvectoraddingvalue.Fromdifferentpointsofview,dataiscrucialinthevalue proposition of the different BusinessModels. In some cases, data is themaindriver to the value proposition of the measure, as it is the case of all the trafficmanagementmeasuresandthesharingvehiclesmeasures.Inothercases,datacanbeimportant to improve the value proposition of themeasures, as in the transport ofFreightmeasuresandinthechargingvehiclesmeasures.Inthosetwocases,datafuelsofinformationtheoperationandwithagoodmanagementofthisinformation,itcancreate knowledge, improve theoperation, and therefore, itmight createevenmoreaddedvaluetotheIndustrialPartner.Facilitators as a key activity. In all the mobility measures, the key activity can beunderstood as to be a facilitator between different agents. Comparing with themeasuresrelatedtothebuildings(WorkPackage2),wheretheactivityistoactinthestructureofthebuildingsortoadvicethetenantstoactdifferently, inthemeasuresrelatedtomobility,allofthemcanbeseenashelpingorimprovingotheractivitiesthatarealreadydonebyothers.Citizens as clear beneficiaries. In all the mobility measures, citizens appear asbeneficiariesofthemeasures.Sometimesnotasthedirectcustomer(likeinmeasures9.2inBarcelonaorinthetrafficmanagementmeasures,wheretheybenefitfromthemthankstoanimprovementofthemobility,andtherefore,itisdeducedthatitreducesthepollution),butbasically,theyappearasthelastbeneficiariesofthemeasures.Lowcapacityofcreationofnewjobs.FortheTrafficmeasures,theChargingvehiclesmeasuresandthesharingpoolmeasures,thereseemstobealowcapacityofcreationofemployment,astheyaremeasureswithalowintensityofmanpower.TheexceptionisthetransportofFreightmeasures,wherethereisaneedoftransporterstodothework. This conclusion will be proved in the Deliverable 6.3, where the number ofcreationofemploymentwillbeseen.

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Solution 9. Sustainable delivery

Onlineshoppingisincreasingrapidlywhichthreatenstoincreasethetotalamountoffreightmovements,leadingtoincreasedemissionsandofmobilitycongestion.Besidethisobservation,inBarcelona,therestrictionsofdrivingintodifferentareasofthecityandatspecifichoursimpliesareductionofthequalityofthedeliveryservicesfor private costumers. This restriction also represents that the delivery services areconcentrated in specific hours in themorning or the afternoon, increasing acousticpollutionandmobilitycongestionwhenithappens,annoyingneighbors.Therefore,thissolutioncanbeaninterestingalternativetoimprovethequalityoftheserviceandtoreducethenumberofvehiclesdeliveringfreightconcentratingtheiractivityinspecifichours.Ontheotherhand,inStockholm,therealitythatretailerscannotconfirmthetimesofthedeliveries,andtherefore,implyingtheneedforthecitizenstoeitherbeathomehalfadaytomeetwithanunpredictabledeliverytimeortraveltoacertaindeliveryagenttocollectpurchases.Thisresultsonadecreaseofthequalityofthisservice.Therefore,the solution proposed, where carriers bring in a delivery room the different goodspurchasedonlinebytheneighbors.ConclusionsregardingtheBusinessModelsrelatedtosolution9.

ThePublicsectorisaprescribertoimpulsethebusinessmodels(BMhenceforth),inthesensethattheCityCouncilcanstimulatedthecreationoftheseBMbygivingsomedirector indirect subsidies (or reduction of taxes) to the Industrial Partner (in the case ofBarcelona,theCityCouncilisofferingthespaceoftheUrbanConsolidationCenterforfree). Theprescription can alsobe indirect, byprohibiting thedistribution service insomehoursandinsomespecificplacesofthecity,arguinganimprovementofqualityoftheair,acousticsandmobility.ThecapacityofsuccessoftheseBMisrelatedtothelevelsofprivateconsumptionofcitizens, and related to the improvement of trade sector. The pedestrianization ofcommercialstreetscanimprovethesekindsofBM,asithasbeenproventhatthiskindoflocalpolicyimprovesprivateconsumption(seeXXX).Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,asthereisaneedofmanpower regarding the lastmiledistributionwithe-bikesore-tricycles,although itdoesn’tseemveryintensiveinmanpower.Butnonewskillscanbeobservedrelatedtothesejobpositions.

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TheresultsofthemanagementofthedatacollectedfromtheseBM,canincreasetheimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEVforlastmiledistributionservices.Finally,theBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas11,relatedtotheimplementationofbatteriesforEV,specifically,e-bikesore-tricycles(seemeasure11.3,inBarcelona).

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BarcelonaMicro-distributionoffreight

Measurerelated:9.2IndustrypartnersinBarcelona:i2Cat,CENITThirdpartners:VanapedalSummaryofBusinessModelTheCompanyVanapedalcreatedanUrbanConsolidationCenter(UCC),i.e.,alastmiledistributionserviceusingelectrictricycles(measure9.2).withspecificchargingpoints(measure11.3).

The lastmiledistributionservice isusedasahub forcarriers thatcannotaccess thecenterofthecityinspecifichoursduetorestrainstofuelvehicles,therefore,givingthechancetoconsumerstoreceivetheirgoodsinawidertimeslotthanwiththetraditionalcarriers,besidethefactthattheuseofe-tricyclesdiminishesCO2emissions.

KeyPartners KeyActivities ValuePropositionsCustomer

RelationshipsCustomerSegments

(1)carriers/Transportation

companies(2)Citycouncil/Local

governments

(1)Receptionandconsolidationofgoodsintothe

consolidationcenter(2)Operatingthemicrodistribution

center(3)Deliverytotheirfinaldestinationusingtricycles

(4)TheWorkshop

(1)Customers/citizens:increasedtimeframetoperformdeliveriesandextendeddelivery

coverage(2)Traditionalcarriers:theyavoidenteringthe

limitedaccessandpedestrianizedareasofthecitycenterandcostssavings.Thesensorsinthetricyclescanhelpoptimizingdelivery

routes,andtomakeitmorecompetitiveforthelast-mileoperator.(4)Community:reducedenvironmentalandnoise

impact(5)CityCouncil:to

monitorthenoiseandpollutionlevelsinthat

area

(1)Customersupport(2)Personalassistance

(1)Users/customers(2)Carriers/Transportation

(3)CityCouncils/Municipalities

KeyResources Channels

(1)Physicalassets(UCCconstructionandmaintenance,Electric

tricycles)(2)Humanresources

(Deliverystaff,operationsstaffattheconsolidationcenter)

(3)Technology(4)PublicFinancing

(1)Withusers/customers:

WebsiteandMobilephoneapps(2)WithCity

Councils:WLANcommunications(3)Withcarriers:

Salesforceandwebsales

CostStructure RevenueStreams

(1)Fixedcosts(Runningcosts,Salaries,Tricycles)

(2)Variablecosts(Costsofoperatingthemicrodistributioncenter)

(1)Feechargedfromcarriers(2)Deliveryfeechargedfromcustomer

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The installation of an urban consolidation center (UCC) for the last-mile delivery ofgoodsinacentrallylocatedareaofBarcelona.,reducingcongestioninpedestrianizedand/orhighlypopulatedareas,diminishingemissions,andloweringdeliverytimesandcostsforconventionalcarriers.Additionally,theelectrictricycleswillbeequippedwithsensorsKeyactivities

The UCC principal activity is operating a micro distribution center where the UCCreceptionsthepackagesbroughtbythecarriersanddeliverittotheirfinaldestinationusingelectricaltricycles.Thisactivityworksasfollows:atthebeginningoftheday,theprincipal provider of courier, mail or parcel service arrives at the facilities of thecompany,whereitleavesthefreightthatshouldbedeliveredduringthatworkingday.Atthismoment,theprotagonistcompanyofthismeasure,throughtheuseofelectric-motorizedtricycles,deliversthefreighttothefinalcustomer,eitheraparticularoracompany.Thedeliverymanwearsthesamecorporateclothingoftheclientcompany,andthetricycleispaintedandthemedwiththesamecorporatecolorsandsymbolsofsaidbigger transportationcompany.Currently thisvalueproposition isalreadybeingimplemented,workingforDHLexpressandDHLterrestre.TheUCCisalsoareparationcenterfortransportationtricyclesfromothercompanies.TheworkshopfacilitiesarealreadyofferingtherepairserviceforothercompaniessuchasMRW,however,themobile-workshopvehiclesdonotexistyeteventhoughbeingdesigned.Finally,theUCCisalsoastorage&deliverablecenterforsmallcompaniesnearby.Anexampleofthisactivityisaclientcompanyspecializedinsellingmattressesthatwerevacuum-packedtoreducethestoragespacerequiredforanormalsizedmattress.Saidcompany requested to have stored a copy of each model which the companymanufactured,andinacasethatacustomerofthisthird-partycompany,wouldhaveneededtheproduct,couldhaveitquicklyandcomfortably.Keyresources

PhysicalAssets:UrbanConsolidationCenter(UCC)constructionandmaintenanceinawarehouse. Also,we should include the electric tricycles (currentlyworkingwith 15units).Human capital: Delivery staff and operations staff at the consolidation centre (eightpeopledelivering,andtwoattheconsolidationcentre,oneattheworkshopandoneintheadministrationdepartment.Atpeakdemandtimes,inChristmas,thetotalamountofworkforcereachestwentypersons.Technology:PDA,electricengines(functioningwithbatteries),chargingpointsforthebatteriesandsensorsprovidingenvironmentalinformationsuchasCO2concentration,temperature,etc.Financialresources:privatefinancing,andpublicfinancing.

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Keypartnerships

Normally the key partnerswill be carriers / transportation companies (such asDHL,MRW,FedExandTNT).FinalcustomerscouldbeconsideredalsoasKeypartners,asVanapedal isthinkingtostartitsowndeliveryservicesbesidethelastmileservicetheyoffertocarriers.ButinthiscaseanotherKeypartneristheCitycouncil,asithasfacilitatedtheuseofaspaceasawarehouseforthecompany.Thiswarehousehasbeengivenforalimittime(notspecified)forfree.CustomerSegments

Thiscompany(Vanapedal)aimstosatisfyanykindofcustomerwhoneedsalast-miletransportationservice.Inthissense,inthelongterm,itaddresseditsservicestoamassmarketwithoutdistinguishingbetweentypologiesofcustomersnorindustrialclients.However, on its first stages of operability, the customer segments can be listed asfollows:Users/Customers:Wholiveinurbancenterswheretheconditionsforthedistributionwithtraditionaltransportationvehiclesarenotthemostconvenient.Carriers/Transportation: Transportation companies for which is difficult to deliverefficiently in the last-mile of city centers. Other subcontracted transportationcompaniesworkingforbiglogisticschainsandrequirereparationservices.CitiCouncilsandMunicipalities(citizensincluded):Municipalitiesthatwillmakeuseoftheenvironmentalinformationtrackedbythesensorsembeddedintothetricycles.ValuePropositions

Thefirstvaluepropositionconsistsinintegratingthebusinessactivitiesintothelogisticschainofalargetransportcompany,offeringthelastmiledeliveryserviceoffreight.Thelevelofintegrationiscompletesincetheimageandtechnologicalmethodsarethesameasthemainoperator,asseeninthe“Keyactivities”section.Thesecondvaluepropositioncanbedefinedasanextensionofthefirstone,addingvaluebyalsoofferingthecollectionofmerchandisetotheparticularuserorathird-partycompany.Inorder,forthisproposal,tobecarriedout,thedeliverymanmusthaveaPDAownedbythebiggertransportationcompany.Themodelisbasedonnothavingstoragecosts,allpackagesreturnedornotsent (duetosomekindof incident in thelogistics of operations), are collected, at the end of the day, by the partnertransportationcompany.CurrentlythisvaluepropositionisbeingcarriedoutforFedEx.

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The third value proposition can be described as a storage and delivery service forcompaniesthatneedtodelivertheproducttothebuyerinarapidway.Theproposalisbasedonrentingstoragespaceandtransportingthefreightwhenisneeded.A forth proposal (not already implemented) is to offer an independent service oftransportation,notdependingofanyothertransportoperator. Itconsistsofa“FromPointtoPoint”modelinthesamecityorurbandistrict,inourcase,atCiutatVellainBarcelona.Thismodeliscurrentlyhasnotbeenimplementedyet,beingunderideationphases.The added value proposed for the companies requesting the courier service, is togenerate savings in the delivery process through increasing efficiency thanks to themoreflexibilityinthedeliveryservice.Thisflexibilityisachievedthankstoaseriesof15tricyclevehiclesthatcanoperateinpedestrianzones.Complementarily, there is a fifth value proposition that consists in offering amaintenanceserviceforvehiclesofthesametypeasthoseusedbythecompanyforthelast-mile distribution of freight, the motorized tricycles. This service, besides takingadvantageoftheworkshopusedatthecompany’sheadquarterstoself-repairtheirownvehicles,alsocontemplatesa travellingworkshopservice. In thismanner,companiescan save themselves the fixed costs generated by the maintenance of the fleet oftricycles.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelof pollution generated by the distribution process, more precisely in substitutingpolluting vehicles for other more environmentally sustainable. Furthermore, thecompany is opting for the transportation service between libraries of the city. Thecompanywantstoparticipateinthepublictendertoexploitthiskindofservice.For the City Council, the environmental information provided by the sensors in thetricycles(suchasCO2concentration,temperature,humidity,noiselevel,etc.)hasthepotentialtobeusedbymunicipalitiessoastomonitorthenoiseandpollutionlevelsinthatareaofthecityandtakeactioninordertoimproveit.Lastly,thesensorsinthetricyclesprovidereal-timetrackinginformationonthetricycles’journey,whichcanhelpoptimizingdeliveryroutes,toimprovetheservice,andtomakeitmorecompetitiveforthelast-mileoperator.Channels

Withthebiglogisticcompaniesviae-mail,PDAandWhatsApp.Withthefinalcustomer:telephone,ApporSMS.

With City Councils: WLAN communications: the sensor in the tricycles will supportmobile (GPRS/UMTS) and WLAN communications to transmit the monitored

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informationtoaSmartCityplatform,whereitwillbeprocessedandmadeavailableforthecityservices.CustomerRelationships

Althoughtherelationshipwiththefinalcustomerisassumedbythecarriercompanies,Vanapedalhasadirectcontactbasicallyrelatedtodeliveringthepackages.The main relationship of Vanapedal is with the Carrier companies, where thecommunicationisdirectandfrequent,andbasicallyrelatedtothepackagesdeliveredornot(becausethefinalcustomerwasn’tattheplaceofdelivery.Intheselastcases,thecommunicationwiththecarriercompaniesistodecidewhenitwillbedeliberatedagain.RevenueStreams

Feechargedfromcarriers.Thefeepaidtothelast-mileoperatorforitsservicesshouldbe competitive for carriers since it needs to provide a cheaper alternative thandelivering the items themselves. The revenues of the last-mile operator need to besufficienttocoverthecostsofoperating.Thereisasecondtypeofrevenues,thosethatcanbegeneratedbyworkingdirectlywithafinalcustomer,withoutdependingofabigmajortransportationcompany.Athirdtypeofrevenueisthatgeneratedbytheworkshopservice,therevenuescomesfromotherlast-miletransportationcompaniesthatrequireafacilityequippedwiththetools to repair their own tricycles. A big revenue stream that should be taken intoaccountisthepubliccontribution,currentlysubsidizingthebillofthelight,therentandpartofthesalaries.Coststructure

Buildingorrentingthespaceoftheconsolidationcentreandrunningcosts(assumedbytheCityHall).Salariesofemployees(deliverystaffandstaffattheUCC).Tricycles:amortization.Costsofoperatingthemicrodistributioncentre.Taxes:(municipaltaxesandIBI(incaseofrentingtheUCC).Utilitiescost(includedintheoperatingcosts):communications,heating,electricity.TheChargingdevicesdonotconsumeahighintensityofelectricpower.

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Stockholm.Deliveryroomforsustainabledeliveries

Measuresrelated:9.1Industrypartners:Carrier,StockholmshemThirdpartners:Qlocx,Move-By-BikeShortdescription:A delivery room will be installed in communal area within a residential building,providing24haccessibility to all tenants, andallowing the consolidationof all homedeliveriesforoneareaandtheuseofelectricpoweredcargobicyclesforthe“lastmile”ofthedelivery.Thefixeddeliveryroomallowsawiderrangeofparcels,asthefullspaceofaroomcanbeusedforstorage.

Keyactivities

Thecitizenscanbuyonlineandtheir freightaresendbytheRetailStoretoCarrier’sdepot.Fromhere,Move-By-Bikewilltransport,bybike(ebike?),thefreights intothedeliveryroomwherecitizens,afterbeingwarnedviaapp,willcollecttheirparcel.

Keyresources

(1)Physicalassets:a.adeliveryroomwithenoughspacetoservedifferentbuildingsandtostorage

differentsizeofparcel.b.BicyclesorElectricpoweredcargobicycles(toconfirm)

(2)Humanresources: a.Deliverystaff b.Administrativestaff(3)Technologycapability(Softwareandappsdevelopment)

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

Fixedcosts(Serviceboxes,Salaries,technologicalinfrastructureandrunningcosts,warehouse)

Variablecosts(marketing,Salariestotemporarydeliverystaff)

(1)Deliveryfeechargedfromcustomers/tenants(2)Commissionchargedfromretailcompanies

(1)Localgovernments(2)Technologycompanies

(1)Managingordersandprocessingthem

(2)Deliveryofthegoods(3)Creatingandmanagingthe

infrastructure(4)Supplychainandlogistics

optimisation

Increasedserviceandcomfortfor

tenants.Extendedcustomerbase.

Reducedenvironmentaland

noiseimpact

Directcustomersupport(throughemail,telephone,

socialmedia,etc.)(1)Users/customers

(2)Retailstores(3)Cities/communities

(1)Physicalassets(Servicesboxesinresidentialbuildings’hallsandElectricpoweredcargobicycles)

(2)Humanresources(3)Technologycapability

(1)Directsales(2)Website

(3)Mobilephones(appsandSMS)

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Keypartnerships

TheKeypartnersarethefollowing:

(1) RetailstoreswillingtousethedeliveryroomservicesofferedbyCarrier.Theyhavetohaveanincentivetouseit,thatcanbebyoneside,theneedtooutsourcethedeliveryservices,andbyanotherside,theneedtoimprovethequalityofthedelivery services by using the delivery room. Finally, they have to have aneconomic incentive,wheretheuseofthedeliveryroomreducestheircostorincreasestheirrevenues.

(2) Citizens, that feel that by using thedelivery room theyhave a better serviceregardingthedeliveryoftheparcelboughtonline.

(3) Technology companies, willing to improve an App that will manage theinformationrelatedtothedeliveries.

(4) Bike company, willing tomake the last-mile trip from Carrier’s depot to thedeliveryroom

(5) Cities/Communities, willing to reduce the air and acoustic pollution inneighborhoods.

Valuepropositions

• For users / customers: increased service and comfort for tenants, includingflexibilityintimefordeliveries.

• Forretailstores:extendedcustomerbase,sincetheycanreachmoreareasinlesstime.

• Forthesociety/community:reducedenvironmentalandnoiseimpactduetoreductionoffossilfueledvehicles,bothfromresidentsthataregoingtopickuptheir freights and from delivery services that concentrate their routs to thedeliveryroom,whichwillbereplacedbyelectriccargobicycles.

Customersegments

TherelationofCustomersisthefollowing:

• Citizenswhodon’twanttogotoastoreandpreferonlineshopping• Retailstoresthatdon’thavetheirownhomedeliveryservicesorthatpreferto

consolidatetheirdeliveriesandreducecosts• Cities/communitiescanalsobeconsideredcustomersastheycanalsomight

usetheservicestosendsomedocumentstothecitizens.Althoughthisoptionisnotconsideredrightnow.

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Channels

TheChannelusedwithresidentsisanapp,wheretheyhavetoregisterasusersofthedeliveryroom(thesecuritysystemisprovidedbyathirdparty,Qlocx).Theythenreceivesmsnotificationswithapincodewhenaparcelisdelivered,whichtheyusetoentertheroomandcollecttheirparcels.Residentswillalsobeabletoregisterparcelsforreturnandleavetheseinthedeliveryroomforcollection.

TheChannelswiththeretailstoreswillbethetraditionalones,i.e.,Website,phone,andmaybeappsiftheyhaveoneontheirown.

Customerrelationship

• Withresidents,anonlinecustomersupport(throughapp).• Withretailstores,adirectcompanysupport(throughemail,telephone,social

media,etc.)Revenuestreams

ForCarriertherevenuescancomefrom:

• Deliveryfeechargedfromcustomers• Commissionchargedfromretailcompanies

Coststructure:

(1)Fixedcosts:a.Deliveryroominstallationb.Salariestopermanentdeliverystaffandadministrativepersonnelc.Creationofthetechnologicalinfrastructureandrunningcostsd.Warehouses

(2)Variablecosts:a.Salariestotemporarydeliverystaff(speciallythebikeserviceforthelastmile)

&Marketingb.MaintenanceoftheDeliveryroom.

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Solution 10. Smart traffic management

CongestionandtrafficaccidentscausessignificantlossoftimeandmoneyinEurope’scities.Usingsmarttechnologytoevenouttrafficflowsandavoidunnecessarystopswillreduceemissionsandalsotrafficaccidents.Givingreal-timeinformationone.g.traveltimemayalsoredirectcitizensfromcartopublictransportorothermodes,ortomaketheirjourneysatanothertime.Oncetheinfrastructureisinplaceitopensupformanybusinessapplications.Withthehelpofarangeofdifferentsensors,trafficpatternswillbeanalyzedinanewwayinCologne.Thiswillcreateagoodpictureofcurrenttrafficflowsinthecityandformabasisforamulti-modetravelplanner.AsimilarsystemwillbeimplementedinStockholmtogetherwithavehiclemanufacturer,alsotestingthesmartcommunicationbetween the traffic lights system and vehicles GPS systems to guide those vehiclesthroughgreenlightsandtowheretrafficislessdense.Inthisregard,thesynchronizationof traffic signals to prioritize the movement of goods and distribution vehicles tominimizestartsandstops,resultinginamoreeffectivemovementofgoodswithloweremissions, noise and improved junction safety. Finally, in the case of Barcelona, asoftwarewillbedevelopedtosimulateacorrectsynchronizationoftrafficsignalsinaspecificareaofBarcelona.The future implementationof thissoftwaremightallowamoreefficienttrafficflow.Itwillbe interesting tohavesomedataon trafficcongestion in the three lighthousecities.ConclusionsregardingtheBusinessModelsrelatedtosolution10.

ThePublicsectorhasacrucialroleinthebusinessmodels(BMhenceforth)relatedtothis solution, as they are the owners of the assets (traffic lights) or the ones thatauthorize the changes in the management of the traffic lights. Therefore, the CityCouncil,oroneofitspubliccompanies,canhirethecompaniesthataredevelopingthemeasuresortheycanbeprescribers,meaningthattheycanaskthecompaniestheyhiretomanage the traffic lights to include thesemeasures, therefore, these traffic lightcompanieswillhirethecompaniesimplementingthemeasuresdetailedinsolution10.ThecapacityofsuccessoftheseBMisrelatedtothecapacitytoprovetheimprovementsin traffic flow and reduction of congestion, gas emissions and acoustic emissions.Therefore,thecapacitytomanagethedatacollectedwillbecrucialforthesuccessoftheseBM.Again,thePublicSectormightbecrucialforthedatacollection,astheymighthavetherightsrelatedtotheuseofdata.Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,notveryintensiveinmanpower,butinterestingonthesensethatitwillimprovenewskills,relatedtodigitaleconomyanddatamanagement.

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Barcelona.Smarttrafficsignals

Measurerelated:10.1Industrypartners:CENIT

Thisisatheoreticalmeasurethatwillnotbeimplemented.SummaryofBusinessModelAsoftwarecompany(inthiscaseaResearchCenter,CENIT)managementsystemthatallowsabettermanagementoftrafficlightsimprovingthetrafficflows.ThecompanyofferingthisservicecouldbehiredbytheLocalTrafficAuthorityofbythePrivate firm operating the traffic lights. This company could be a spin-off from theResearchCenter(forthisbusinessmodeldefinitionwewillassumethatthecompanywillbeCENIT).

Keyactivities

Theaimofthismeasureistocalculatethemacrofundamentaldiagramoftrafficflowofthe district of SantMartí (Barcelona) and study how tomanage traffic lights in theperimeter area in order to change the traffic states and improve traffic flows. Thismeasureisstagnantintheideationprocessandisbasedinthefundamentaldiagramoftrafficflowrelatingbetweenthetrafficfluxandthetrafficdensity.Ahypotheticalimplementationofthemeasurewillbetheinstallationofseveralstationsto control the traffic flow, and connecting those stations to the traffic lights

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

T RevenueStreamsStaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageSoftwaredevelopmentandoperationcosts

Revenuesthatcomedirectlyfromthemunicipality(orTrafficmanagementCompany)thatispayingforthissoftware.

MunicipalitiesTrafficmanagementcompanies

Tocalculatethemacrofundamentaldiagramoftrafficflowofadistrict(SantMartí)Studyhowtomanagetrafficlightsintheperimeterareainordertochangethetrafficstatesandimprovetrafficflows.

Forthecityhall:toimprovethetrafficdensity.Forthetrafficlightcompany:toimprovetheuseofthetrafficlights,andtheirmaintenance.Forthefinalcustomers(thedrivers):toimprovethetrafficflowandthereforethetimeoftravel.

Contractrelationwiththehire(MunicipalityorTrafficmanagementcompany)

Publicadministrations/MunicipalitiesTrafficlightcompanies

PhysicalAssets:Trafficlights(alreadyexisting).Humancapital:engineerorapplicationdevelopersprogramingthesoftwareandfollowingupregularlyitsimplementation.Technology:stationscollectingthedatarelatedtotrafficflowandasoftwareformanagingthetrafficsystemandsemaphores.Financialresources:private

WiththetrafficLightCompany,bytraditionalchannelsofcommunication

WiththeCityHall,bycommunicatingregularlythesituationofthetrafficflow.

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managementsystem,thatwilladaptthefrequencyofthosetrafficlightstotheintensityofthetrafficflow.KeyResources

PhysicalAssets:Trafficlights(alreadyexisting).Human capital: engineer or application developers programing the software andfollowingupregularlyitsimplementation.Technology: stations collecting the data related to traffic flow and a software formanagingthetrafficsystemandsemaphores.Financialresources:privatefinancing.Keypartnerships

TheKeypartnersareMunicipalitiesandtrafficmanagementcompanies.Dependingonthecontractingconditions, thosepartners canhaveadifferent levelof relationwithCENIT.ThemainpartnerwillbetheonehiringCENIT.CustomerSegments

Publicadministrations/Municipalitieswhowanttoimprovethetrafficintheircitiesandachieve smoother traffic flows and the company thatmanages the semaphores in acertainarea.ValuePropositions

For thecityhall, thegoal is,using themacroscopic fundamentaldiagramtheoryandsomeactivetrafficlightssystems,toimprovethetrafficdensityorrathertheaggregatejourneytimesandthereforethepollutionlevelsinacity.Forthetrafficlightcompany,ifitistheonehiringCENIT,itwillimprovetheuseofthetrafficlights,andwillallowtoimprovethemaintenanceofthetrafficlights,thankstotheirconstantsurveillancebythesoftware.Forthefinalcustomers(thedrivers),itwillimprovethetrafficflowandthereforethetimeoftravel.Channels

WiththetrafficLightCompany,bytraditionalchannelsofcommunicationbetweenacontractorandaservicecompany,withprobably,sharinginformationaboutthestatusofthetrafficlights.WiththeCityHall,bycommunicatingregularlythesituationofthetrafficflow.

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Customerrelationship

AssaidintheKeypartnership,therelationwilldependonwhoishiringCENIT.The contractor will have a regular relation, following up the evolution of theimplementationofthesoftwaresystem.Revenuestreams

Revenuesthatcomedirectlyfromthemunicipalitythatispayingyouforthissoftware,or the revenues that come from a third-party company, for instance, the one thatmanagesthetraffic lightsystem,andisrequiredbythemunicipality,to implementasolutionthatneedsthistypeofsoftware.Inbothways,therevenuestructureisnearlythesame.However,ourcompanycouldhave fixedrevenues, for instanceselling theproductwith fixed prices (developing costs + amargin) or having variable revenuesdependingonthefinalempiricalbenefitsofthesoftware.Onthiscase,therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athird scenario is the one that combines the two revenue streams (fix + variablerevenues).Coststructure

Software license, salaries, investments required to adapt the dynamic regulation oftrafficlights.Softwaremaintenancecosts(thesoftwarerequiredtodevelopthisprojectis not the same as the software required to implement it, for this reason the finalsoftwarerequiresamaintenanceprice)

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Stockholm.TraveldemandManagement&Smartguidingtoalternativefuel

stationsandfastcharging

Measuresrelated:10.3&11.5Industrypartners:KTH&theCityofStockholmShortdescription:Afterdecidingtomergemeasures10.3&11.5,KTH&theCityofStockholmdecidetodevelopanintegratedmulti-modalportalpromotingsustainabletravelchoicesavailablefromasmartphoneapplication,withthegoaltoimprovechangesintravelbehaviorinawaythatismoreeffective,sustainable.Italsoallowstothe36,000carsandlightdutytransport vehicles operating on renewable fuels in Stockholm to have updatedinformationonwhereeachalternativefuelcanbefilledup,togetherwithmostrecentprices.Finally,thiswillimprovethetraveldemandmanagementmeasures.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

1.Ownersofvehiclespoweredwithrenewalenergy2.Citizens/driverswithaHighawarenessofaneedofamoresustainablemobility3.Municipalitywillingtoimprovethemobilityintheirstreets.4.Fuelstationsofferingrenewalenergy

asmartphoneapplicationthatwillinformabout:actualizedinformationofpricesofrenewalenergyinfuelstations.offeringalternativetravelchoicesmoresustainable

•ForDrivers,theimprovementoftheirownprivatemobility,byreducingthetimeoftravelandthefuelconsumption.•ForEVDrivers,toimprovetheuseofrenewalenergybyhavingabetterinformationonwheretofuelvehiclespoweredwithrenewalenergy.•Forcitizenswithahighsustainableconsciousnessandformunicipalities,thecapacitytoreducethepollutionincities

•Onebyone,challengingeachothertoreduceemissionsandenergyconsumption,usingtechniquesofgamificationofusers’behavior

Residentsawareofaneedtoimproveamoresustainablemobilityinurbanareas.

Citizens/driverswhoownanelectricvehicleorare

interestedinbuyingoneMunicipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodesof

transportation.

KeyResources Channels

•Website/Smartphoneapplication•Maintenanceofthewebsite/Smartphoneapplication•Informationfromthefuelstations

ThroughtheuseofMobile

CostStructure RevenueStreams

CostofdevelopingtheApp:Salaries&LaborCostsrelatedtodesigntheAppandactualizetheinformation.Costofactualizingtheinformationfromthefuelstations.

(1)TheApplicationcanreceiverevenuesfrompublicityincludedintheApplication(2)Fuelstationsmightbeinterestedtopayafeetoguaranteetobeintheapplication(ortobeon“toppositions”)andtoshareactualizedinformation(3)Municipalitiesmightbeinterestedinsupportthismeasuresasitcanimprovethereductionofpollutioninitsstreets.(4)RenewalCarCompaniescouldbeinterestedtopromotethisAPPsotheycangetaggregatedatatolearnaboutuser’sbehavior.

Keyactivities

Themainactivityisasmartphoneapplicationthatwillinformabout:Actualizedinformationofpricesofrenewalenergyinfuelstations.Offeringalternativetravelchoicesmoresustainable.

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Keyresources

Thekeyresourcesare:

• Website/Smartphoneapplication• Maintenanceofthewebsite/Smartphoneapplication• Informationfromthefuelstations

Keypartnerships

Thepartnersarethefollowingones:1. Ownersofvehiclespoweredwithrenewalenergy2. Citizens/drivers with a High awareness of a need of a more sustainable

mobility3. Municipalitywillingtoimprovethemobilityintheirstreets.4. Fuelstationsofferingrenewalenergy

Customersegments

Thecustomerscouldbethefollowingones:

Residentsawareofaneedtoimproveamoresustainablemobilityinurbanareas.Citizens/driverswhoownanelectricvehicleorareinterestedinbuyingoneMunicipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodesoftransportation.

Valuepropositions

Themainvaluepropositionsare:• ForDrivers,theimprovementoftheirownprivatemobility,byreducingthetime

oftravelandthefuelconsumption.• For EV Drivers, to improve the use of renewal energy by having a better

informationonwheretofuelvehiclespoweredwithrenewalenergy.• For citizenswith a high sustainable consciousness and formunicipalities, the

capacitytoreducethepollutionincities

Channels

• Throughmobilephones&websites

Customerrelationship

Therelationwiththecustomerwillbethefollowing:

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• One by one, challenging each other to reduce emissions and energyconsumption,usingtechniquesofgamificationofusers’behavior.

Revenuestreams

Fourarethealternativerevenuesdetectedforthismeasure:

(1) TheApplicationcanreceiverevenuesfrompublicityincludedintheApplication(2) Fuel stations might be interested to pay a fee to guarantee to be in the

application(ortobeon“toppositions”)andtoshareactualizedinformation(3) Municipalitiesmightbeinterestedinsupportthismeasuresasitcanimprovethe

reductionofpollutioninitsstreets.(4) RenewalCarCompaniescouldbeinterestedtopromotethisAPPsotheycanget

aggregatedatatolearnaboutuser’sbehavior.Coststructure

Cost of developing the App: Salaries & Labor Costs related to design the App andactualizetheinformation.Costofactualizingtheinformationfromthefuelstations.

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Stockholm.Smarttrafficsignals

Measurerelated:10.4Industrypartners:CityofStockholm(measure10.4).Thirdpartners:SwarcoShortdescription:Different smartmanagement traffic signal lights solutionswill be tested in order toimprovetrafficflowanddecreasecongestion:

(A) twosolutionswillbetested:A.1:Alimitednumberoftrafficlightswillbeequippedwithspecializedsoftwaresothatcarswiththerightequipmentcangetinformationandadapttheirspeedtobeabletoreachthegreenlights.A.2:Asignalprioritysystemwillgivecertainvehicles(cleanvehicles,inparticularelectricandrenewablefueleddeliverytrucks)agreenlightfasterthanothers,reducingtheirtraveltime.

Keyactivities

TheKeyactivityistodevelopasoftwareandtomanageittosynchronizetrafficlightstoimprovetrafficflows.

Keyresources

(1)Physicalassets/Technology:a.Hardwaregatheringanddeliveringinformationtotrafficsignalsb.Software:softwareintrafficlightsandinsomecars(seesolutionA1)

(2)Humanresourcestodevelop&managethesoftware.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Fixedcosts:Software/Hardwaredevelopmentandmaintenance,salariesofemployees

(2)Variablecosts:Marketingandoperations

(1)TrafficSignals:publiclicensetomunicipalities(2)Car'sonboardsoftware:itmaybesoldtothecarindustryasanasset

saleorasaspecialdevicedirectlytocarownersforafixedprice(3)Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefuelledtrucksthatoperateinsmartlogisticsolutions.

(1)Citycouncil/Municipalities(2)Thirdpartiesintheautomobileindustrythatwanttoadvanceinautonomouscar(3)Othertechnology

companies

(1)Softwareandhardwaredevelopmentandmanagement

(2)Customisedinformationforsomedriverstoreduce

traveltimes(3)Engagingwithpartners

Tomanagecitytrafficmoreefficientlyandsmoothly,reduce

trafficcongestion,andlessenenergy

consumptionandemissions,noiseandriskofaccidents

(1)Technicalassistance(2)Self-service

Publicadministrations/Muni

cipalitiesCitizens/DriversPrivatesectora.Hardwaregatheringand

deliveringinformationtotrafficsignals

b.Softwareintrafficl ightsandacar’sonboardsoftware

c.Humanresources

(1)Website(2)DirectSalestocities/automobilecompanies

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Keypartnerships

Thekeypartnersarethefollowing:

(1) Citycouncil/Municipalitiesthatdesiretoimprovetheirmobilityandtherefore,reducecongestionandpollution.

(2) Citizens/Driverswhowanttoreducetheirtravellingtimes.(3)ThirdpartiesintheautomobileindustrythatwanttoadvanceinrenewalandEVcar(4)Othertechnologycompanies

Customersegments

Thecustomersthatwillusethissoftwarewillbe:

• Citizens/Driverswhowanttoreducetheirtravellingtimes• Automobile industrysolutionA.1canbesold to theautomobile industryasa

specialdevice.• Publicadministrations/Municipalitiesthatwanttoimprovethetrafficflowin

theirstreets.

Valuepropositions

Thereareseveralvaluepropositions,dependingonthespecificsolution:• Forcitizens:Reductionoftraveltimeandenhanceddrivers’experience• Forcities:ImprovedtrafficflowsandReducedenergyconsumption,emissions,

noiseandriskofaccidents• Encouragestheuseofcleanervehicles,whichisgoodfortheenvironment

Channels

• SmartPhoneapplicationsorWebsite• DirectSalestocities/automobilecompanies.

Customerrelationship

• Technicalassistance• Self-service

Revenuestreams

(1) Forthesystemthatgivesthedriverinformationaboutwhatspeedtoadoptinordertoreachagreenlightatthenexttrafficlight:

a. itmaybesoldtothecarindustryasanassetsale.b. itcouldalsobesoldasaspecialdevicedirectlytocarownersforafixedprice.

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(2) Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefueledtrucksthatoperateinsmartlogisticsolutions.Benefitslikethiscouldmakeupfortheextracostofthevehicles.

(3) UsagefeefrommunicipalitiesCoststructure

(1)Fixedcosts:a.Softwaredevelopmentandmaintenanceb.Hardwaredevelopmentandmaintenancec.Salariesofemployees

(2)Variablecosts:a.Marketingandoperations

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Stockholm. Traffic signals synchronized to prioritize certain vehicles

movementofgoods

Measurerelated:10.5Industrypartners:Carrier(measure10.5).Shortdescription:Asmartmanagementtrafficsignal lightssolutionswillbetested inorderto improvetrafficflowanddecreasecongestion.Concretely,trafficsignalsinandaroundÅrstawillbere-programmedandsynchronizedtoprioritizethemovementofgoodsdistributionvehiclestominimizestartsandstops,resultinginmoreeffectivegoodsmovementswithloweremissions,noiseandimprovedjunctionsafety.

Keyactivities

• Softwareandhardwaredevelopmentandmanagement• Customizedinformationforfreightdriverstoreducetraveltimes

Keyresources

(1)Physicalassets/Technology:a.Hardwaregatheringanddeliveringinformationtotrafficsignalsb.Software:softwareintrafficlightsandmaybealsoavehicleonboardsoftware

(2)Humanresourcestodevelopandmanagethesoftware.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Fixedcosts:Software/Hardwaredevelopmentandmaintenance,salariesofemployees

(2)Variablecosts:Marketingandoperations

(1)TrafficSignals:publiclicensetomunicipalities(2)Car'sonboardsoftware:itmaybesoldtothecarindustryasanasset

saleorasaspecialdevicedirectlytocarownersforafixedprice(3)Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefuelledtrucksthatoperateinsmartlogisticsolutions.

(1)Citycouncil/Municipalities(2)Thirdpartiesintheautomobileindustrythatwanttoadvanceinautonomouscar(3)Othertechnology

companies

(1)Softwareandhardwaredevelopmentandmanagement

(2)Customisedinformationforsomedriverstoreduce

traveltimes(3)Engagingwithpartners

Tomanagecitytrafficmoreefficientlyandsmoothly,reduce

trafficcongestion,andlessenenergy

consumptionandemissions,noiseandriskofaccidents

(1)Technicalassistance(2)Self-service

Publicadministrations/Muni

cipalitiesCitizens/DriversPrivatesectora.Hardwaregatheringand

deliveringinformationtotrafficsignals

b.Softwareintrafficl ightsandacar’sonboardsoftware

c.Humanresources

(1)Website(2)DirectSalestocities/automobilecompanies

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Keypartnerships

Thekeypartnersarethefollowing:(1)Citycouncil/Municipalitieswhowanttoimprovetrafficflows.(2)Freight/carrierscompanieswhowanttoimprovethetimeoftheirdeliveriesandthefuelconsumptionoftheirvehicles.(3)Thirdparties in theautomobile industry thatwant to improvethemobilityoffreightvehicles(4)Othertechnologycompanies

Customersegments

Thecustomersthatwillusethissoftwarewillbe:

• Carrierscompanieswhowanttoreducetheirtravellingtimesandtheirvehiclesfuelconsumption.

• Automobileindustryinterestedtodevelopthissoftwareasaspecialdeviceforitsvehicles.

• Publicadministrations/Municipalitiesthatwanttoimprovethetrafficflowintheirstreets.

Valuepropositions

Thereareseveralvaluepropositions,dependingonthespecificsolution:• For cities: Improve traffic flows and reduce energy consumption, emissions,

noiseandriskofaccidents• Forcarriercompanies:toimprovetimeofdeliverandfuelconsumption.

Channels

• Directsalestocarriers,cities/automobilecompanies.

Customerrelationship

• Technicalassistance• Self-service

Revenuestreams

Therevenueforthismeasurecancomefrom:SellingthedevicetoautomotiveindustrySellingthedevicetocarriers.Usagefeefrommunicipalities

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Coststructure

(1)Fixedcosts:a.Softwaredevelopmentandmaintenanceb.Hardwaredevelopmentandmaintenancec.Salariesofemployees

(2)Variablecosts:a.Marketingandoperations

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Solution 11. Alternative fuel driven vehicles for decarbonizing and better air quality

There is no singlepropulsion technology that alone can replace today’s fossil fueledvehicles, the solution must be a combination of smarter mobility running on bothelectricityandsustainablebiofuels.While themarket development is a bit on itsway for light duty vehicles andbuses,distributiontruckswhicharesoimportantforcitiesstillhavejuststartedtodevelop.Forelectricalvehicles,theaccesstochargingfacilitiesmaybeaconcern,andinsomecitiesalsotheimpactonthelocalgrid,astheyareexpectedtoloadataboutthesametime.Initiallytherewillnotbechargingpostseverywhereandthereisaneedforthedriverstoknowwheretheyarelocatedandiftheyareoccupied.ThisisanessentialpartforthewideruptakeofEVs.GrowSmarterwilldemonstratehowtheuptakeofthesevehiclescanbespeededupbyan integrated approach combining better charging and fueling facilities, informationhelpingeffectthechoiceofvehicleusersandbuyersandtheuseofthesevehiclesinthedifferentmobilitymeasuresintheproject.Themainimplementationchallengeforcharginginfrastructureonpubliclandis,inallthelighthousecities,relatedtotheplanningprocessesandpermitsrequiredtoinstallprivately-operated infrastructure. In addition, Cologne is exploring the possibility ofusingexistingtrafficlightsystemstoinstallchargingpoints.InBarcelona,thisoption,islegallyunavailable.Besidethisgeneralchallenge,therearesomespecificrealitiesfromcity to city, such as in the case of Barcelona, where recently the City Council hasapprovedanorderwherevehicleswithaspecificlevelofemissionwillnotbeallowtocirculateintheBarcelonaRingRoads.Thispolicyisaccompaniedwithatwoyearsfreerideonpublictransportsforallthecitizensthatretirethesekindsofvehicles.ThispolicycanbeastimulustoincreasetheuseofEVforcitizensandcompaniesinBarcelona.Onitsside,StockholmcanbenefitfromtherecentdecisionfromSwedishGovernmenttosubsidiseconsumerpurchasesofelectriccyclesandelectriccargobikeswitha25%rebate.ThisrealitycanimprovetheuseofEcyclesinStockholm.ConclusionsregardingtheBusinessModelsrelatedtosolution11.

ThePublicsectorisaprescribertoimpulsethebusinessmodels(BMhenceforth),inthesensethattheCityCouncilcanstimulatedthecreationoftheseBMbygivingsomedirectorindirectsubsidies(orreductionoftaxes)totheIndustrialPartner.Theprescriptioncanalsobeindirect,byprohibitingtheuseoffueledvehiclesinsomespecificareasofthecityandinsomespecificclimateconditions.Thecapacityofsuccessof theseBMis relatedtothe levelsofuseofEVs,byprivateowners,car-sharingcompaniesordifferenttransportservices.

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Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,asthereisaneedofmanpower regarding the management of the charging stations, although it mightincludesomenewskills,nottoomany,andtheintensityofuseofmanpowerwillbelow.ItseemsthatthereisapossibilityofreconversionoftraditionalFuelStations.TheresultsofthemanagementofthedatacollectedfromtheseBM,canimprovethemanagement of the charging stations, and also can be an argument to increase theimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEV.Finally,theBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas9,relatedtotheimplementationoftheuseofe-bikesore-tricycles(seemeasure9.1,inBarcelona).

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Barcelona.E-mobilitychargingsystemSoftware

Measuresrelated:11.1&11.2.eMainindustrialPartner:ENDESADistribución

SummaryoftheBusinessModel:5 charging “towers” available for electric cars (measure 11.1), and fast chargers forelectricvehicles(measure11.2.e).ENDESADistribución(henceforthEndesa)offersthisservicefreeofcharge,andtheCityHallpaysthebilloftheElectriccost.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

StaffsalariesChargingtowersinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts

Revenuescouldcomefromtheenergysuppliedtothee-vehicles,however,inthesemeasures,theenergycostissubsidizedbytheCitycouncil

Thecompanycouldhavefixedrevenues,forinstancesellingtheproductwithfixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthechargingtowers.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).

Citycouncil

E-Vehiclesdrivers

Installationandoperationofcharginginfrastrucutre

Dataaquisitionanddatamanagementofchargingpoints

ForEVdrivers: easieraccesstochargingstationsFormunicipality :fulfillenviromentalrequirementsForsociety: positiveenviromentaleffects

Withthefinalcustomers,B2C.

WiththeMunicipality,PPP.

ElectricVehicledriversOrganizationswithElectricVehicles

Municipality

ElectricVehicleChargersHumanResourcesITSystemandinfrastrucutre

Thecontractor(citycouncil)willhavearegularrelation,followingupthe

evolutionoftheimplementationofthe

chargingtowers.

Keyactivities

Installationofchargingtowersavailableforchargingelectricvehicles.Endesainstallsthechargingtowers,andtheCityhallassumestheelectriccostofthecharges.Thereisalsoasoftwarerelatedtothatelectricchargers.Onceinstalled,andthesechargingstationsareavailableforanyelectricvehicle,thosecanusethemforfree,sincecurrentlyatthismoment,itissubsidizedbytheCityhall.KeyResources

PhysicalAssets:Chargingtowers.Humancapital:engineers&workers.Thefirstdesigningthetowersandcontrollingtheiractivityandthelastinstallingthemandkeepingtheirmaintenance.Technology:sensorscollectingthedatarelatedtothestatusofchargingtowers.Financialresources.

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Keypartnerships

TheKeypartneristheCityCouncilthatauthorisestheinstallationoftheChargingtowersandalsosubsidisesthecostofchargingthevehicles.CustomerSegments

Municipality who want to improve the use of electric vehicles, and therefore, thereductionofpollutiongeneratedbytraditionalvehiclesUsersthatcanhaveanincentivetohaveaelectricvehicle,asthecostofchargingthemissubsidized.ValuePropositions

Forthecityhall,thegoalistoreducethepollutionbyincentivisingtheuseofelectricvehicles.For Endesa, the goal is to observe the operability and the financial balance of thechargingtowers.Forthefinalcustomers(thecitizens)thegoalistoreducetheemissionofCO2andNOxbyusingelectricvehiclesandeasieraccesstochargingstations.Forthesociety,thegoalistohavepositiveenvironmentaleffects.Channels

Thecontractor(citycouncil)willhavearegularrelation,followinguptheevolutionoftheimplementationofthechargingtowers.

Customerrelationship

Withthefinalcustomers,B2C.WiththeMunicipality,PPP.Revenuestreams

Revenues could come from theenergy supplied to thee-vehicles,however, in thesemeasures,theenergycostissubsidizedbytheCitycouncilThe company could have fixed revenues, for instance selling the productwith fixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthechargingtowers.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).

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Coststructure

StaffsalariesChargingtowersinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts

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Cologne.eTankEelectriccharging

IndustrypartnersinCologne:RheinEnergieThirdPartners:CambioandAmpido.Measuresrelated:11.1Shortdescription:Installation of several charging infrastructures for tenants to charge their electricvehicles.ItisasolutionincooperationwithKVB,thecar-sharingcompanyCambioandthecarpark-sharingcompanyAmpido.

Keyactivities

Thekeyactivityis:

• Electricalvehicleschargingstations.

Toreachittherewillbeaneedtoimplementotheractivitiessuchas:

• Softwareandhardwaredevelopmentandmanagement• Networkplanningandadaptationtodecidewheretomostefficientlyimplement

thechargingstations

Therearesomeindirectactivitiesderivedfromthekeyone:

• Energydataanalytics• ThecapacitytousetheEVasenergystoragedevicesbalancingpeakloadsand

makingoptimaluseof renewableenergy, andpartof the city’sMobilityHubconcept(seeMeasure12.3inCologne).

Keyresources

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Provisionandmaintenanceofinfrastructure(2)Developmentandhostingofthewebsite

(3)Salariesofemployees(4)Variablecosts(Electricity,Marketingandoperations)

(1)Duringanintroductoryperiod,chargingisprovidedfreeofcharge(theonlycostfortheuseristhepriceoftheSMSthattheyneedtosend)

(2)Afterthatausagefeemightbecharged(3)Potentialpartnershipswithmunicipalities

(1)Othercompaniesinthee-mobilitysector(2)Citycouncil/Municipalities

(3)Othercleanenergytechnologycompanies

(1)Electricalvehiclescharging(2)Softwareandhardware

developmentandmanagement(3)Networkplanning

(4)Energydataanalytics(5)Engagingwithpartners

(1)Promotionofplug-inhybrid-electricandelectricvehicles

(2)Itdiscouragestheunnecessaryuseof

privatecarsandreducestrafficcongestion

(3)Thesystemwillalsocollectdataandhelp

forecastingthedemandforelectricity,improving

energyefficiency

(1)Freecharging(2)Customerservices

(3)Self-service

(1)Citizens/users(2)Municipalities

(1)Physicalassets/infrastructure(2)Technology/R&D

(3)Software(4)Humanresources(5)Brand

(1)Cchargingstations(2)Website

(3)Mobilephones(4)Partnerprograms

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TheKeyresourcesneeded:

• Physicalassets/infrastructure:chargingstations• Technology/R&D• Softwaretomanagethechargingprocess• Humanresources(technicalknowledge)• Brand

Keypartnerships

TheKeypartnersare:

(1)Companiesinthee-mobilitysector:thesolutionisimplementedincooperationwith KVB, the car-sharing company Cambio and the carpark-sharing companyAmpido.(2)Citycouncil/MunicipalitiesthatwantstoimprovetheuseofEV(3)Othercleanenergytechnologycompanies

Customersegments

Thecustomerswillbe:• Citizens/userswhowanttousemoresustainablemodesoftransportation• MunicipalitiesthatwantstoimprovetheuseofEV

Valuepropositions

• Forcitizens/cities:promotionofplug-inhybrid-electricandelectricvehiclesinopposition to fossil fueled vehicles, which lowers carbon emissions andpollution,resultinginabetterairquality

• ForEVCarSharingandcarparkSharingcompanies:itstimulatestheuseoftheirservicesastheywillhavemorechargingpointsinthecity.

• Forelectriccompanies/publicministerofenergyorsimilar:Thesystemwillalsocollectdataaboutthepublicandprivatechargingstationsandhelpforecastingthedemandforelectricity,improvingenergyefficiency

Channels

• Directphysicallocation:chargingstations• Website:users/customersarerequiredtoregisterattankEwebsitetousethe

chargingstations• Mobilephones: tostartorstopthechargingprocessyouhavetosenda text

messageviamobilephone• Partnerprograms

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Customerrelationship

• Freecharging(foraperiodoftime)• Customerservices(email,website,phone)• Self-service

Revenuestreams

(1) Duringanintroductoryperiod,chargingisprovidedfreeofcharge(theonlycostfortheuseristhepriceoftheSMSthattheyneedtosend)

(2) Afterthatausagefeemightbecharged(3) PotentialpartnershipswithmunicipalitiesandwithCarsharingcompanies.

Coststructure

• Chargingstations:provisionandmaintenanceofinfrastructure• Developmentandhostingofthewebsite• Salariesofemployees(engineeringandtechnicalstaff)• Variablecosts:

a. Electricity: cost of electricity depends on the current status of theelectricitygrid

b. Marketingandoperations

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Stockholm.FastandnormalcharginginfrastructureforEVs

Measuresrelated:11.1&11.3Industrypartners:FortumShortdescription:Onerapid(measure11.1)andeightnormal(measure11.3)chargingpointshavebeenimplemented by Fortum. The rapid charging point was installed at a roadsideMcDonald’s.Fastchargingstationsprovideelectricvehicleswithfullychargedbatteriesinlessthan30minutes.TheeightnormalchargingpointsatlocatedatVallaTorgandconsistoffourpoleseachequippedwithtwoconnections.Thesechargingpointswillserveusersofthecarpoolservice(measure12.1)andsmarthomeapplication,alongwiththegeneralpublic.

Keyactivities

Thekeyactivitiesare:

• Installationof9chargingpointsofferingnormalandfastchargingtoElectricalvehicles.

• Maintenanceofthechargingpoints• Collectionandmanagementofenergydataanalytics

Keyresources

• PhysicalInfrastructure:chargingstations• Technology/R&D• Energy/Powerlines• Humanresources(technicalknowledge)

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams(1)Provisionandmaintenanceofinfrastructureand

equipment(2)Signageandmarking-outthearea

(3)Salariesofemployees(4)Variablecosts:ElectricityandMarketingand

operations

(1)Duringaperiodchargingisprovidedfreeofcharge.TheCouncilwill analysedifferentbusinessmodelsandpricingmechanismsthatcouldbeimplementedafter

theinitialperiodoffreecharge(1)Stockholm:Theoperatormaychargefortheservice.ThepriceinStockholmiscurrentlybetween0.20-0.25€/minutewithnospecialparkingfeeforthefast

chargers.

(1)Othercompaniesinthee-mobilitysector(2)CityCouncils/Municipalities

(3)TaxisandCouriercompanies

(3)Othercleanenergytechnologycompanies

(1)Electricalvehiclescharging

(2)Powersupply(3)Fastcharging

stationsinstallationandmaintenance

(4)Energydataanalytics

(1)Fastcharginghighpowercharging-stationsofferthepossibilitytofullychargeanalmost

emptybatteryinlessthanhalfanhour

(2)Promotestheuseofelectricvehicles

(3)Forthecitycouncils:allowsthembetterunderstandcitizens’

behaviorandtodevelopmoretailoredpoliciestowardse-mobility

(1)Freechargingtoearlyadoptersuntil2017(2)Self-service

(3)Freeparkingwhilecharging (1)Citizens/drivers

(2)Couriercompanies(3)Electrictaxis(4)Municipalities

(1)PhysicalInfrastructure(2)Technology/R&D

(3)Energy/Powerl ines(4)Humanresources

(1)Directphysicallocation:charging

stations.(2)Partnerprograms(CityCouncilorprivatesector

partners)

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Keypartnerships

TheKeypartnersare:

(1) DriversofEV(2) Companiesinthee-mobilitysector(2)CityCouncils/Municipalities(3)TaxisandCouriercompanies(3)Othercleanenergytechnologycompanies

Customersegments

• Citizens/driverswhoownanelectricvehicleorareinterestedinbuyingone• CouriercompaniesthatwanttouseEV,andthereforereduceenergycosts.• Taxis(electrictaxis).• Municipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodes

oftransportation• CarSharingCompaniesthatwanttoofferabetterservicetotheirclientsthanks

toofferingmorechargingpoints.

Valuepropositions

Themainvaluepropositionsare:• Plug-inhybrid-electricvehiclesusuallychargetheirbatteriesoveralongperiod

of timeata lowcurrent.Fastcharginghighpowercharging-stationsofferthepossibility to fully charge an almost empty battery in less than half an hour,allowingforgreaterconvenience,speedandavailability.

• Promotestheuseofelectricvehiclesinoppositiontofossilfueledvehicles,whichlowers carbon emissions, noise and air pollution, and results in a better airquality,whilefacilitatingthefutureimplementationofe-mobility.

• Forthecitycouncils:theyreceivedatafromtheusageandoperationofthefastchargingstations,whichallowsthembetterunderstandcitizens’behaviorandtodevelopmoretailoredpoliciestowardse-mobility.

• ForCar-sharingcompaniesofferingEV,allowsthemtogivemorechargingpointstotheircustomers.

• For EV companies, the option to havemore charging points in the city is anincentivetofuturecustomers.

• ForEVdrivers,itallowsfreeparkingwhilecharging

Channels

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• Directphysicallocation:chargingstations.Thefastchargersarelocatedonpublicland, for which the suppliers have been granted access rights by the City ofStockholm. Additionally, there are other fast chargers that have also beenestablishedonprivateland.Inthesecases,othertypesofagreementshavebeensignedbetweentheoperatorandthelandownerwithoutanyinvolvementfromthecity,suchasthefastchargingstationbyFortumtogetherwithMcDonald’sattheparkingfacilitybyMcDonald’srestaurant.

• Partnerprograms (CityCouncilorprivatesectorpartners, suchascar-Sharingcompanies)

Customerrelationship

• Self-serviceRevenuestreams

(5) Usagefee:Theoperatormaychargefortheservice.ThepriceinStockholmiscurrentlybetween0.20-0.25€/minutewithnospecialparkingfeeforthefastchargers. There canbedifferent feesdependingonwho is charging, if it is aprivatedriver,orauserofaCar-Sharingservice.PartofthefeecanbepaidbytheCityCouncil,toencouragetheuseofEV.

Coststructure

• Chargingstations:provisionandmaintenanceofinfrastructureandequipment• Signageandmarking-outthearea• Salariesofemployees(engineeringandtechnicalstaff)• Variablecosts:

a. Electricity / Power supply: cost of electricity depends on the currentstatusoftheelectricitygrid

b. Marketingandoperations

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BarcelonaChargingbatteriesfore-tricyclesande-bikes.

Measurerelated:11.3IndustrypartnersinBarcelona:i2Cat,CENITThirdpartners:VanapedalSummaryofBusinessModelCENITandi2Catareimprovingsomechargingbatteriesfore-tricyclesande-bikesthatarebeingstetedbyVanapedalinthemeasure9.2.

Keyactivities

The activity is to create charging stations for e-bike & e-tricycles. The measure iscenteredtobeusedbythee-tricyclesfromtheUrbanConsolidationCenterinBarcelona(seemeasure9.1),butitcanbeusedforprivateownersofe-bike&e-tricycles.Keyresources

Thekeyresourcesare:(1) Physicalassets:chargingstations,andbatteries.

KeyPartners KeyActivities ValuePropositionsCustomer

RelationshipsCustomerSegments

(1) carriers/Transportationcompanies

(2) Citizens(3)Citycouncil/Local

governments

(1)Charginge-bikesande-tricycles.

(1)Traditionalcarriers:increasetheuseofe-bikesore-tricyclesforthelast-miledelivery.

(2)Citizens:increasetheuseofe-bikesore-

tricycles(3)Community:reducedenvironmentalandnoise

impact(4)CityCouncil:to

monitorthenoiseandpollutionlevelsinthat

area

(1)Customersupport(2)Personalassistance

(1)Citizens(2)Carriers/Transportation

(3)CityCouncils/Municipalities

KeyResources Channels(1)Physicalassets

(chargingstations,andbatteries).

(2)Humanresources(operationsstaffofthechargingstationsand

replacementofbatteries)

(1)Withcitizens:WebsiteandMobile

phoneapps(2)Withcarriers:

Salesforceandwebsales

CostStructure RevenueStreams

(1)Fixedcosts(Runningcosts,Salaries,Chargingstationsandchargingassets)

(2)Variablecosts(CostsofmanagingtheChargingstations)

(1)Feechargedtocarriers(2)Feechargedtocitizens

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(2) Humanresources:operationsstaffofthechargingstationsandreplacementofbatteries.

Keypartnerships

Normallythekeypartnerswillbecarriers/transportationcompaniesinterestedtouseEV for the lastmile distribution. But citizens using e-bikes or e-tricycles can also bepartners,asCityCouncils,thatmightwishtopromotetheuseofthesekindsofvehicles.CustomerSegments

Thecustomersegmentscanbelistedasfollows:Citizens:Wholiveinurbancentersandusee-bikesorsimilarEV.Carriers/Transportation: Transportation companies for which is difficult to deliverefficientlyinthelast-mileofcitycenters,andthereforeusee-bikesorsimilarEV.Citi Councils and Municipalities (citizens included): Municipalities that will like toimprovetheuseofe-bikesorsimilarEV.ValuePropositions

Thevaluepropositionfortheusersofthechargingstationsisanimprovementoftheenergyconsumptionandoftimeconsumption,forcarriercompanies.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelofpollutiongeneratedbytheuseofe-bikesorsimilarEV,morepreciselyinsubstitutingpollutingvehiclesforothermoreenvironmentallysustainable.Channels

Withcitizens:WebsiteandMobilephoneappsWithcarriers:SalesforceandwebsalesCustomerRelationships

Therelationwiththefinaluserwillbebygibingacustomersupportandpersonalassistanceifneeded.RevenueStreams

(1) Feechargedtocarriers(2) Feechargedtocitizens

Coststructure

(1)Fixedcosts(Runningcosts,Salaries,Chargingstationsandchargingassets)(2)Variablecosts(CostsofmanagingtheChargingstations)

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Stockholm.Renewablefuelsforheavydutyvehicles

Measurerelated:11.4Industrypartners:StockholmThirdpartners:GasnätAB,OKQ8,ST1(Shell),StatoilShortdescription:10newfuelingstationsforalternativefuels–biogas,ED95,HVOandRME–forheavyvehicleswillbeprovidedinordertoincreasethenumberofheavyvehiclesoperatingonbiofuelsinStockholm.

Keyactivities

Thekeyactivitiesare:

• Installingnewfuelingstationsforalternativefuelsandaddingalternativefuelstoexistingdieselstations

• Energysupply:provisionofbiofuels• Datamanagement:Managementof data collected from the fuel stationswill

allowanimprovementofthosefuelstations.Keypartnerships

TheKeypartnersare:

(1) CityCouncils/Municipalities(2) SwedishTransportationAgency(3)Companiesintheenergysector/Energysuppliers(fuelcompanies)(4)Freightandtransportationcompanies

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Provisionandmaintenanceofinfrastructureandequipment

(2)Biofuels/Powersupply(3)Salariesofemployees

(4)Variablecosts(Marketingandoperations)

(1)Usagefee:Users/freightcompaniespayapriceperquantityofbiofuel

(1)CityCouncils/Municipalities(2)Swedish

TransportationAgency(3)Fuelcompanies(4)Freightandtransportationcompanies

(5)Companiesintheautomotiveindustry

(1)Energysupply(2)Install ingnewfuelling

stationsforalternativefuelsandaddingalternativefuelstoexistingdieselstations

(1)Itreducesthenegativeimpactsof

transportation(2)Itincentivesthe

useofheavyAFVsandpromotessustainable

economicdevelopment.

(1)Consumerassistance(2)Self-serviceinfuelling

stations (1)Drivers/freightcompaniesusingheavy

vehicles,suchasdistributiontrucks.

(2)Municipalities/localgovernments.(1)PhysicalInfrastructure:

fillingstations(2)Technology/R&D

(3)Biofuels(4)Humanresources

(1)Directphysicallocation(2)Indirect:referralsthroughotherusers(3)Partnerprograms

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(5)Companiesintheautomotiveindustry

Keyresources

• PhysicalInfrastructure:fillingstations• Technology/R&D• Biofuels(Biogas,ED95,HVO,RME)• Humanresources(technicalknowledge)

Customersegments

• Drivers/freightcompaniesusingheavyvehicles,suchasdistributiontrucks.• Municipalities/localgovernments.

Valuepropositions

Themainvaluepropositionsare:• Bio-fueledtrucksreducebothlocalemissionsandcarbondioxideemissionsand

thusreducethenegativeimpactsoftransportation.Insomecases,noiselevelswillalsodecrease.

• Themarketforalternative-fuelcarsisalreadydeveloped,butnotsomuchforheavyvehicles.ThissolutionfocusesonincentivizingtheuseofheavyAFVsandpromotessustainableeconomicdevelopment.Theestablishmentoffuelstationsforrenewablefuelsacceleratestechnologydevelopmentandthetransitiontofossilfreefreighttraffic.

• CargotransportationisexpectedtoincreaseintheupcomingyearsinSwedenandStockholmandthereforeitiskeytoreplacefossilfueledvehiclesbothwithelectricandsustainablebiofuels.

Channels

• Directphysicallocation:fuelingstations• Indirect:referralsthroughotherusers• Partnerprograms

Customerrelationship

• Consumerassistance• Self-serviceinfuelingstations

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Revenuestreams

• Usagefee:Users/freightcompaniespayapriceperquantityofbiofuel.PartofthefeecanbeassumedbythecitycouncilwillingtoimprovetheuseofheavyEV.

Coststructure

• Fuellingstations:provisionandmaintenanceof infrastructureandequipment.TheCityisresponsibleforfindingandrentingtheland,whichisleasedtofillingstationoperatorsatastandardprice,ontheconditionthatatleasttwodifferentbiofuelsaresuppliedateachstation.Privatecompaniesareresponsiblefortherestoftheinvestment.

• Biofuels/Powersupply• Salariesofemployees• Variablecosts:

Marketingandoperations

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Barcelona.SmalldistributedCompressedNaturalGasfillingstation

Measurerelated.11.6MainindustrialPartner:GasNaturalFenosaSummaryoftheBusinessModelSettingonesmallCompressedNaturalGas(henceforthCNG)fillingstationgivingservicetoCNGvehicles.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

Fixedcosts(equipment,engineering,construction,

maintenance,counciltaxes)

Variablecosts(energysupplyinfrastructure)Naturalgassalesondispenser(€/kilo)

EngineersSuppliersInstallersDepartmentsofthecompanyitselfandbusinessareasPublicadministration(urbanlandscapedepartment,mobility,district,amongothers)InstallationcompanyDistributionSystemOperator(DSO)MunicipalityorlanderownerElectricityretailcompany

Technicalspecificationsdefinition

(basicengineering)

Sitelocationofthefillingstation

DesignandsizeInstallation:

optimizationofpublicsurfacespace

EquipmentandInstallation

tenderingprocess

WorkSupervisionincludinghealth

andsafetyissues,detailed

engineering,amongothers.

Worksplanningandcommissioning.

Monitoring,managingandcontrol

Maintenanceanddatacollection

FortheCity:CNGfillingstationsgrid(onlytwointhecity),lesspollution,lessnoise.ForCarriers:Lastmilemoreeconomicservicecomparedwithpetrolordiesel.

Formunicipality/propoertyowner:fulfillenviromental

requirementsandmakeuseof

thespacebyrentingthat

Forsociety:positiveenviromental

effects

Customers(B2C)Vehiclefleetsortaxis(B2B)

Privatecustomers

Companies’andcityvehicle

fleets

Taxis

OrganizationswithElectric

VehiclesFundstoinvest

SustainableMobilityDepartment

Administrationmanagerfor

bureaucracymanagement

Technology,coordinationand

managementcapability

Humanresources

Monitoringplatformforcustomer

monitoring,analysisandloyalty

Directsales

Cardealers

Advertisingcampaignviawebsite

Personalizedcommercial

campaignsforkeycustomersor

companies

Keyactivities

InstallationoftheCNGfillingstation.Theytriedtoinstalltheminthestreetbutafterhavingseveraldifficultiestodoso,theydecidetoincludetheminastandardGasstation.ToinstalltheCNGfillingstationtheyhadtodefinetechnicalspecifications,decidethesite location,define thesizeof the installation.Onceall thedesignwassettled,GNFstartedatenderprocesstodotheinstallation.OnetheCNGfillingstationwasinstalled,itneedsmaintenance,andthereforemonitoringit,andmanagingthedatacollection.

KeyResources

PhysicalAssets:CNGfillingstation.

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Human capital: engineers & workers. The first designing the filling stations andcontrollingtheiractivityandthelastinstallingthemandkeepingtheirmaintenance.Technology:monitoringplatformforcustomermonitoring,analysisandloyalty.Financialresources.PrivatefundingsKeypartnerships

TheKeypartnerarethefollowing:TheCityCouncilthatauthorisestheinstallationoftheCNGfillingstationsinthestreet,althoughthisoptionhasn’tsucceededso,thispartnermightnotbecrucialanymore,besidethefactthatitistheauthoritythatallowsinstallingtheCNGinthefuelstations.Theengineers,suppliersandinstallersneededtoinstalltheCNGfillingstationTheDepartmentsofthecompanyitselfandbusinessareasThefuelstationwheretheCNGfillingstationwillbeinstall.Thefinalclients(citizens,companies’vehiclefleets&taxis)thatwillustheCNGfillingstation.CustomerSegments

Privatecustomers,Companies’andcityvehiclefleets&Taxisthatwanttofulfilltheirvehicles.ValuePropositions

FortheCitycouncil:CNGfillingstationswillreducepollutionandnoise.Forcarriers:Lastmilemoreeconomicservicecomparedwithpetrolordiesel.Forfinalcustomers,thegoalistobeabletofulfiltheirvehiclesandreducepollution.Channels

Directsales,advertisingcampaignviawebsiteandPersonalizedcommercialcampaignsforkeycustomersorcompanies.Customerrelationship

ThereisaB2CrelationwithcitizensandaB2BwithVehiclefleetsortaxis.

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Revenuestreams

RevenuescouldcometheNaturalGassalesondispensers.Coststructure

Fixedcosts(equipment,engineering,construction,maintenance,counciltaxes)Variablecosts(energysupplyinfrastructure).

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Solution 12. Smart mobility solutions

Public transport isagoodalternative topersonalcars for regular trips toschoolandwork,andtheLightHousecitiesinGrowSmarteralreadyhavearelativelygoodshareofPublicTransportforthesetrips.Thebigchallengeishencetosubstitutethecarinothertripsthatarelessregularandmoreindividual.StatisticsaboutCarSharing,BikeSharing,different vehicles Pools in the lighthouse citiesmight offer a gooddimensionof therealityandthereforeoftheproblemtoovercome.GrowSmarterwill launcharangeofdifferentsolutionscompletingtheexistingpublictransportnetwork.Thisincludesbikepools,cargobikes,e-bikes,EV-poolsandimprovedshuttlingtobushubs,andimprovedtaxiservicethusprovidingthechoiceofthebestoptionforeachindividualtrip.Thereare somespecific realities fromcity tocity thathave tobeknown, to see thepotentialofsomeofthemeasures.ItisthecaseofBarcelona,whererecentlytheCityCouncilhasapprovedanorderwherevehicleswithaspecificlevelofemissionwillnotbeallowtocirculateintheBarcelonaRingRoads.Thispolicyisaccompaniedwithatwoyearsfreerideonpublictransportsforallthecitizensthatretirethesekindsofvehicles.Thispolicycanbeastimulus to increasetheuseofEV forcitizensandcompanies inBarcelona.Onitsside,StockholmcanbenefitfromtherecentdecisionfromSwedishGovernmenttosubsidiseconsumerpurchasesofelectriccyclesandelectriccargobikeswitha25%rebate.ThisrealitycanimprovetheuseofEcyclesinStockholm. ConclusionsregardingtheBusinessModelsrelatedtosolution12.

FortheBMrelatedtothissolution,thepublicsectoralthoughitcanbeaprescribertoimpulsethem, itmighthaveamoreactiveposition insomemeasures, than inothersolutionsrelatedtotheWP4.Thereasonforthismoreactivepositioncanbefoundinthe fact that some of themeasures need the use of public land owned by the CityCouncil,orinothercases,themeasuresarerelatedtothelegalrealityofthecity.The capacity of success of these BM is related to the levels of use of the differentmeasuresproposed.Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regarding job creation, theBM related to this solution seem tohave a lowneedofmanpower,although,theywillbenewjobs,relatedtothesharingeconomyorthedigitaleconomy,soitcanbeanopportunityofreconversionforlong-termunemployedorforyoungworkers.

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TheresultsofthemanagementofthedatacollectedfromtheseBM,canimprovethemanagement of the measures, and also can be an argument to increase theimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEV,CarSharingorotheraspectsrelatedtothemeasures.Finally,someoftheBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas11,relatedtotheinstallationseofChargingStations.

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Barcelona.SmarttaxistandsysteminBarcelona

Measurerelated:12.6MainindustrialPartner:CENIT

SummaryofBusinessModelAmobileapplicationthatwillserveforboth,taxidriversandusers, informingofrealtimesituationaboutoccupancylevelsofthetaxistands.ThecompanyofferingthisservicecouldbehiredbytheTaxiAuthority.Thiscompanycouldbeaspin-offfromtheResearchCenter(forthisbusinessmodeldefinitionwewillassumethatthecompanywillbeCENIT).

Keyactivities

Themain tasks carriedouthavebeen the searchand findingof theappropriate taxiranksto installthetechnologytomonitorvehiclesandthereviewofalltechnologiesavailabletomonitorvehiclepresenceaswellasthewirelesscommunicationsystemsand the final installationof the sensors. In collaborationwith theTaxiAuthorityandCellnexTelecom,threetaxirankswereselectedintheareaofSantMartí.AhypotheticalimplementationofthemeasurewillbetheinstallationofseveralsensorsinthetaxiranksandthedevelopmentofanAPPusedbybothcitizens&taxidriversthatwillindicatewhichtaxiranksareemptyand,therefore,improvetheefficiencyoftaxi’smobility.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

StaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts

Revenuesthatcomedirectlyfromthemunicipality(ortaxiauthority)thatispayingforthissoftware.

Thecompanycouldhavefixedrevenues,forinstancesellingtheproductwithfixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthesoftware.Onthiscase,therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).

Municipaltaxiauthorities(ortheCityCouncil)TaxiAssociationstechnologicalpartnerimplementingthesensors(inthiscaseCellnexTelecom).

searchandfindingoftheappropriatetaxiranksinstallthetechnologytomonitorvehiclesInstallthewirelesscommunicationsystemsandthefinalinstallationofthesensors.DevelopmentofanApptobeusebyTaxisandUsers

Forthecityhall:toimprovethetrafficflowandreducethepollution.FortheTaxiAuthority:offerabetterservicetobothtaxisandcitizens.Forthetaxiscompanies:toreducethefuelconsumptionandalsotoofferabetterservicetotheirclients.Forthefinalcustomers(thecitizens):toreciveabetterservicesfromtaxicompaniesandalsoimprovetheirqualityoflife

Thecontractor(CityCouncil)orTaxiAuthoritywillhiretheservice(PPP)

Publicadministrations/MunicipalitiesTaxisUsersPhysicalAssets:Taxistands

(public).Humancapital:engineerorapplicationdevelopersprogramingthesoftwareandfollowingupregularlyitsimplementation.Technology:sensorscollectingthedatarelatedtothestatusofthetaxiranks

Withthetaxis&citizens,bythemobileapplication

Withthetaxiauthority,theCityhallandtheITcompany,bytraditionalcommunicationsystems,informingtheevolutionofthemobileapplication.

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KeyResources

PhysicalAssets:Taxistands(public).Human capital: engineer or application developers programing the software andfollowingupregularlyitsimplementation.Technology:sensorscollectingthedatarelatedtothestatusofthetaxiranks.Financialresources.Keypartnerships

TheKeypartnersareMunicipaltaxiauthorities(ortheCityCouncil),TaxiAssociationsandatechnologicalpartnerimplementingthesensors(inthiscaseCellnexTelecom).CustomerSegments

Publicadministrations/Municipalitieswhowanttoimprovethetaxiservices,thetrafficintheircitiesandreducethepollutiongeneratedbytaxisrideswithoutpassengers.Taxiswhowanttoreducethetimeofridingwihoutpassengers,andthereforereducethefuelconsumptionandthatalsowanttoreducepollutionandimprovetheservicestotheircustomers.UsersthatcanhaveamoreefficientTaxiservices.ValuePropositions

For the city hall, the goal is to improve the traffic flow and reduce the pollution byreducingthetime&numberofTaxisridingwithoutpassengers.FortheTaxiAuthority,thegoalistoofferabetterservicetobothtaxisandcitizens.Forthetaxiscompanies,thegoalistoreducethefuelconsumptionthankstoareductionoftaxisridingwithoutpassengers,andalsotoofferabetterservicetotheirclients.For the final customers (thecitizens) thegoal is to reciveabetter services fromtaxicompaniesandalsoimprovetheirqualityoflifethankstoareductionofpollutionandanimprovementoftrafficflowthankstoareductionoftaxisridingwithoutpassengers.Channels

Withthetaxis&citizens,bythemobileapplicationWiththetaxiauthority,theCityhallandtheITcompany,bytraditionalcommunicationsystems,informingtheevolutionofthemobileapplication.

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Customerrelationship

Thecontractor(cityhallorTaxyauthority)willhavearegularrelation,followinguptheevolutionoftheimplementationofthesoftwaresystem

Revenuestreams

Revenuesthatcomedirectlyfromthemunicipality(ortaxiauthority)thatispayingforthissoftware.The company could have fixed revenues, for instance selling the productwith fixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsof thesoftware.Onthiscase, therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).

Coststructure

StaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts

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Cologne.Mobilityhub

Measurerelated:12.3IndustrypartnersinCologne:Cambio,Ampido,KVB,RheinEnergieShortdescription:Mobility hubswill provide commuters and residentswith a location,where you caneasilyfindvariouskindsoftransport,suchastrams,trains,buses,taxis,(e-)Car-sharing,(e-)Bike-Sharingandparkinglotswithonlinemanagementofparkingspaces.Therewillbethepossibilityfortheurbanadministrationtoregulateinner-citytrafficbyadjustingpricesaccordingtothedemandandcapacity.**Note:thisismoreinfrastructureprovisionwithdifferentbusinessmodelsontheside(suchaschar-sharing,bike-sharing,managementofparkingspaces,etc.)

Keyactivities

• Theprovisionanddevelopmentofawiderangeofmobilityandtransportationoptionsandinfrastructure

• Platform and software development for the online management of parkingspaces,adjustingpricesaccordingtothedemandandcapacity,andforthecar-sharingandbike-sharingsystems

• Engagingwithpartners• Promotionofthemobilityhubs

Keypartnerships

(1)Citycouncil/Municipalities(2)Privatebuilding,constructionandtransportationcompanies(3)Bikesharingcompanies

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

(1)Infrastructurecostsandmaintenance(2)Softwaredevelopmentandoperationcosts

(3)Staffsalaries

(1)Fortheparkingspaces:usagefee.Pricescanbeadjustedaccordingtodemandandcapacity.

(2)For(e-)Carsharingand(e-)Bike-Sharing:usagefee

(1)Citycouncil/Municipalities

(2)Privatebuilding,constructionandtransportationcompanies

(3)Bikesharingcompanies

(4)Carsharingcompanies

1)Provisionanddevelopmentofawiderangeofmobilityandtransportationoptions2)Softwaredevelopmentfortheonlinemanagement3)Engagingwithpartners

4)Promotionofthemobilityhubs

(1)Moreandbetterconnectedmobilityoptions,lesstraffic

congestionandlessairandnoisepollution,reductionoftheneed

forprivatecarownership

(2)Increasesthedemandforelectricvehiclesandbikes

(jobs),reductionininner-citytraffic

(1)Long-termcontractswithlocalgovernments(2)Self-serviceand

automatedserviceswiththeresidents/commuters

(1)Residents/commuters

(2)Localadministrators

(1)Physicallocations(2)PublicTransport

(3)BicycleandCarsharingsystem

(4)Technology(5)Humanresources

(1)Website(2)Mobileapps(3)B2Csales

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(4)Carsharingcompanies

Keyresources

• Physicallocationforparkinglots,Car-sharingandBike-sharingspaces• PublicTransport(trams,trains,buses,taxis)• BicyclesharingsystemsandCar-sharingsystems• Technology / Software for online management and pre-booking of parking

spacesandbikesandcarsinbike-sharingandcar-sharingsystems• Humanresources

Customersegments

• Residents/commuters• Localadministrators

Valuepropositions

Thevaluepropositionsare:(1) Forcommuters:

a. more and better-connected mobility options, improving the flexibility ofurbanmobility

b. less traffic congestion and less air and noise pollution (you can pre-bookparking spaces reducing inner city traffic, since you do not need to drivearoundlookingforaparkingspot)

c. reductionoftheneedforprivatecarownership(lesscosts)

(2) Forthecity:a. Increasesthedemandforelectricvehiclesandbikes,whichcouldhelpcreate

jobsandimprovequalityoflifeofcitizens.b. MobilityHubsareexpectedtoleadtoa60%reductioninCO2emissionsc. Urban administration can regulate inner-city traffic by adjusting prices

according to the demand and capacity: it is expected a 40% reduction ininner-citytraffic

Channels

• Website• Mobileapps• B2Csales

Customerrelationship

• Long-termcontractswithlocalgovernments• Self-serviceandautomatedserviceswiththeresidents/commuters

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Revenuestreams

• Fortheparkingspaces:usagefee.Pricescanbeadjustedaccordingtodemandandcapacity.

• For(e-)Carsharingand(e-)Bike-Sharing:usagefee

Coststructure

• Infrastructurecostsandmaintenance• Softwaredevelopmentandoperationcosts• Staffsalaries

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Cologne.Electricalandconventionalcarsharing

Measuresrelated:12.4Industrypartners:Cambio,KVBShortdescription:Themeasureiscomposedofthefollowingactivities:

1. Acarsharingservicewillbesetupwitharangeofdifferentcarstobeabletocater to everybody’s need in different situations. To completely be able notowningyourowncar it isnecessarythatcarpoolscanofferdifferentcarsfordifferentneeds.Anelectricvehiclemightbesuitableforshortertripsinthecitybutwhentravellinglongerdistanceswithabigfamilyanelectricvehiclemightnotfittheneedsanditisthereforeimportanttoofferalternatives.ThisofferwillbeputtogetherbyCambio.

2. Usersofpublictransportmusthavethepossibilitytousebus,tram(light-rail),bicycles and passenger cars with one ticket. Cambio and KVB are currentlydevelopinga so called “Mobilticket”, anenhancementof thealreadyexistingsubscription ticket.With this “Mobilticket” travelers will be able to use bus,trams,bicyclesandcarsharing-carswiththeirnormalseasonticket.

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams1.Fixedcosts(depreciationoffixedassets,salaries,technologicalinfrastructureandrunning(overhead-)costs,maintenance,rentofparkingspaces)2.Variablecosts(marketing,energy)

1.Feechargetocustomerbyseasontickets2.Feechargetocostumer3.Basicfees4.ExtraServices(insuranceetc.)

1.cardealerships2.Cityauthority(providingtheparkingspaceforvehiclesandbicycles)3.Nextbike(thirdpartyforlogisticofbicycles)4.Garageowners,privatehouseowners(providingtheparkingSpaceforCambioandKVB)5.Municipalgovernment(policydecisiontotrafficplanningofthecityofCologne)

1.Managingordersandprocessingthem(onlineregistration=signingofacontract)2.Provisionofcars,e-cars,bicyclesande-bicycles3.Creatingandmanagingtheinfrastructureofcarsandbikes4.Supplychainandlogisticsoptimization

1.forthecity/community:Lesstrafficproblems,lesscostsforgeneralmaintenancestreetwork,lesspollution,lessnoise,more"space"inthestreet2.forusers/costumers/localfirms:noneedofowncars,bicyclesorvehiclefleets3.forhomeowner:iftheyoffercarsharing,theycanbuildlessparkingspaceforthetenants

1.OnebyOne2.Marketing&Publicity(events,salesdriveetc.)3.customerrecommendation4.word-of-mouthrecommendationtocustomers(veryimportant!)5.longtermcontractsfortheparkingspace

privatecustomers2.company’s/localfirms/churchadministration3.cities/communities

1.Physicalassets

(passengercars,passenger

e-cars,transportvehicles,

bicycles,e-bicycles)

2.Humanresources

3.Technologycapability

1.Phonebooking2.Website3.Mobilephones(appsandSMS)4.customeroffice5.hotline

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Keyactivities

• Managing orders and processing them (online registration = signing of acontract)

• Provisionofcars,e-cars,bicyclesande-bicycles• Creatingandmanagingtheinfrastructureofcarsandbikes• Supplychainandlogisticsoptimization

Keyresources

• Physicalassets(passengercars,passengere-cars,transportvehicles,bicycles,e-bicycles)

• Humanresources• Technologycapability

Keypartnerships

• cardealerships• Cityauthority(providingtheparkingspaceforvehiclesandbicycles)• Nextbike(thirdpartyforlogisticofbicycles)• Garageowners,privatehouseowners(providingtheparkingSpaceforCambio

andKVB)• Municipalgovernment(policydecisiontotrafficplanningofthecityofCologne)

Customersegments

• privatecustomers• company’s/localfirms/churchadministration• cities/communities

Valuepropositions

Thevaluepropositionsare:1) forthecity/community:

• lesstrafficproblems,lesscongestion• lesscostsforgeneralmaintenancestreetwork• lesspollution,lessnoise• more"space"inthestreet

2) forUsers/Costumers/localfirms:• noneedofowncars,bicyclesorvehiclefleets• lesscosts

3) forhomeowner:• iftheyoffercarsharing,theycanbuildlessparkingspaceforthe

tenants• lesscosts

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Channels

• Phonebookingofcars• Bicyclebookingdirectonthebike• Website• Mobilephones(appsandSMS)

Customerrelationship

• OnebyOne• Marketing&Publicity(events,salesdriveetc.)• customerrecommendation• word-of-mouthrecommendationtocustomers(veryimportantforcarsharing)• longtermcontractsfortheparkingspace

Revenuestreams

• Feechargetocustomerbyseasontickets• Feechargetocostumer• Basicfees• FeeforextraServices(insuranceetc.)

Coststructure

• FixedcostsØ depreciationoffixedassetsØ StaffsalariesØ technologicalinfrastructureØ running(overhead-)costsØ maintenanceØ rentofparkingspaces

• Variablecosts

Ø marketingØ energyØ maintenancerepairs

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Stockholm.Greenparkingindex

Measurerelated12.1.Industrypartners:StockholmhelmThirdpartner:MoveAbout.Shortdescription:According to Swedish legislation, the constructionofnewbuildings, aswell aswhenrenovating old ones, requires the provision of a number of parking places perapartment.With the aim to reduce the demand for private parking and encouragealternativeformsoftransport,theGreenparkingindexwascreated.Theindexreducesthenumberofparkingspacesrequiredperapartment,whilerewardsdeveloperswhoofferalternativeformsoftransporttotheirresidents(bicycleparking,carsharing,etc.)byreducingtherequiredparkingprovisionby10to25percent.Lessparkingreducesthepriceforthebuildingandlowersproductioncostsforcontractors.*Note:Thisismorealegislation.

Customersegments

• Stockholmshemstenants• Otherhouseholdsinthearea• EV-driversgettingthepossibilitytocharge

Valuepropositions

Thevaluepropositionsare:

KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments

KeyResources Channels

CostStructure RevenueStreams

FixedCosts:Buyingtheservices(EVcarsharingpool&Electrikcargobikepool)InstallingtheinfrastructureLocation(lostrevenue)

NotapplicableforStockholmshem,therevenuesgoestotheprovidersofthepoolservices.

1.Stockholmshem2.Fortum3.MoveAbout4.PotentialsupplierofE-cargobikes5.Residents

Changingtolesscardependecyandelecticvehicles

FortheCityandtheresidents:Lesspollution,lessnoice,more"space"inthestreet.ForFortum&MoveAbout:Newcustomersandvisability.ForStockholmshem:visabilityandaddedvalueforthetenants

DirectcommunicationMarketing&Publicity

Stockholmshemstenants

Otherhouseholdsinthearea

EV-driversgettingthepossibilitytocharge

ParkingspaceChargingequipmentandelectricityEVcarsharingpoolElectrikcargobikepool

NewslettersWebb

Socialmedia

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a. For theCityand the residents:Lesspollution, lessnoice,more"space" in thestreet.

b. ForFortum&MoveAbout:Newcustomersandvisability.c. ForStockholmshem:visabilityandaddedvalueforthetenants

Channels

NewslettersWebbSocialmedia

Customerrelationship

DirectcommunicationMarketing&Publicity

Revenuestreams

Therevenuesgototheprovidersofthepoolservices.Keyresources

ParkingspaceChargingequipmentandelectricityEVcarsharingpoolElectriccargobikepoolKeyactivities

ChangingtolesscardependecyandelecticvehiclesKeypartnerships

1.Stockholmshem2.Fortum3.MoveAbout4.PotentialsupplierofE-cargobikes5.Residents

Coststructure

FixedCosts:Buyingtheservices(EVcarsharingpool&Electrikcargobikepool)InstallingtheinfrastructureLocation(lostrevenue)

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Stockholm.Electric&cargobikePool

Measurerelated12.2.Industrypartners:StockholmshemThirdpartner:MoveAbout.Shortdescription:Creation of aMobility Hubwith e-bikes and E-cargo Bikes, offered by the companyMoveAbout.

Keyactivities

Theactivityistocreateae-bike&e-cargobikepool.Themeasureiscenteredtobeusedbycitizensandcarriercompanies.Keyresources

Thekeyresourcesare:(3) Physicalassets:e-bikesande-cargobikes.(4) Humanresources:operationsstaffofthepoolstationandmaintenanceofthe

vehicles.

KeyPartners KeyActivities ValuePropositionsCustomer

RelationshipsCustomerSegments

(1) carriers/Transportationcompanies

(3) Citizens(3)Citycouncil/Local

governments

createae-bike&e-cargobikepool.

(1)Traditionalcarriers:increasetheuseofe-bikesore-tricyclesforthelast-miledelivery.

(2)Citizens:increasetheuseofe-bikes

(3)Community:reducedenvironmentalandnoise

impact(4)CityCouncil:to

monitorthenoiseandpollutionlevelsinthat

area

(1)Customersupport(2)Personalassistance

(1)Citizens(2)Carriers/Transportation

(3)CityCouncils/Municipalities

KeyResources Channels(1)Physicalassets

(chargingstations,andbatteries).

(2)Humanresources(operationsstaffofthechargingstationsand

replacementofbatteries)

(1)Withcitizens:WebsiteandMobile

phoneapps(2)Withcarriers:

Salesforceandwebsales

CostStructure RevenueStreams

(1)Fixedcosts(Runningcosts,Salaries,e-bikesande-cargobikes)

(2)Variablecosts(Costsofmanagingthepoolstationandmaintenanceofthee-bikesande-cargobikes)

(1)Feechargedtocarriers(2)Feechargedtocitizens

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Keypartnerships

Normallythekeypartnerswillbecarriers/transportationcompaniesinterestedtouseEV for the lastmile distribution. But citizens using e-bikes or e-tricycles can also bepartners,asCityCouncils,thatmightwishtopromotetheuseofthesekindsofvehicles.CustomerSegments

Thecustomersegmentscanbelistedasfollows:Citizens:Wholiveinurbancentersandusee-bikesorsimilarEV.Carriers/Transportation: Transportation companies for which is difficult to deliverefficientlyinthelast-mileofcitycenters,andthereforeusee-bikesorsimilarEV.Citi Councils and Municipalities (citizens included): Municipalities that will like toimprovetheuseofe-bikesorsimilarEV.ValuePropositions

Thevaluepropositionfortheusersisanimprovementoftheenergyconsumptionandoftimeconsumption,forcarriercompanies.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelofpollutiongeneratedbytheuseofe-bikesorsimilarEV,morepreciselyinsubstitutingpollutingvehiclesforothermoreenvironmentallysustainable.Channels

Withcitizens:WebsiteandMobilephoneappsWithcarriers:SalesforceandwebsalesCustomerRelationships

Therelationwiththefinaluserwillbebygibingacustomersupportandpersonalassistanceifneeded.RevenueStreams

(3) Feechargedtocarriers(4) Feechargedtocitizens

Coststructure

(1)Fixedcosts(Runningcosts,Salaries,e-bikesande-cargobikes)(2)Variablecosts(Costsofmanagingthepoolstationandmaintenanceofthee-bikesande-cargobikes

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4. AboutGrowSmarterGrowSmarter(www.grow-smarter.eu)bringstogethercitiesandindustrytointegrate,demonstrate and stimulate the uptake of ‘12 smart city solutions’ in energy,infrastructureandtransport,toprovideotherEuropeancitieswithinsightsandcreateareadymarkettosupportthetransitiontoasmart,sustainableEurope.

5. GrowSmarterprojectpartners

ThisprojecthasreceivedfundingfromtheEuropeanUnion'sHorizon2020researchand innovation programme under grant agreement no 646456. The soleresponsibilityforthecontentofthisdocumentlieswiththeauthorandinnowayreflectstheviewsoftheEuropeanUnion.

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Annex1.BusinessModelsandScalabilityStrategyhasbeen theprimarybuildingblockof competitivenessover thepast threedecades,butinthefuture,thequestforsustainableadvantagemaywellbeginwiththebusinessmodel.Thepressuretocrackopenmarketsindevelopingcountries,particularlythoseatthemiddleandbottomofthepyramid,isdrivingasurgeinbusiness-modelinnovation.Theeconomic slowdown in the developed world is forcing companies to modify theirbusinessmodelsorcreatenewones.Inaddition,theriseofnewtechnology-basedandlow-cost rivals is threatening incumbents, reshaping industries, and redistributingprofits.Indeed,thewaysbywhichcompaniescreateandcapturevaluethroughtheirbusinessmodelsisundergoingaradicaltransformationworldwide.

Whatisabusinessmodel?

Everyone agrees that executives must know how business models work if theirorganizationsaretothrive,yettherecontinuestobelittleagreementonanoperatingdefinition.ManagementwriterJoanMagrettadefinedabusinessmodelas“thestorythatexplainshowanenterpriseworks,”harkingbacktoPeterDrucker,whodescribeditastheanswertothequestions:Whoisyourcustomer,whatdoesthecustomervalue,andhowdoyoudelivervalueatanappropriatecost?Otherexpertsdefineabusinessmodelbyspecifyingthemaincharacteristicsofagoodone.Forexample,HarvardBusinessSchool’sClayChristensensuggeststhatabusinessmodelshouldconsistoffourelements:acustomervalueproposition,aprofitformula,key resources, and key processes. Such descriptions undoubtedly help executivesevaluatebusinessmodels,buttheyimposepreconceptionsaboutwhattheyshouldlooklikeandmayconstrainthedevelopmentofradicallydifferentones.Ourstudiessuggestthatonecomponentofabusinessmodelmustbethechoicesthatexecutives make about how the organization should operate—choices such ascompensationpractices,procurementcontracts,locationoffacilities,extentofverticalintegration,salesandmarketinginitiatives,andsoon.Managerialchoices,ofcourse,haveconsequences.Forinstance,pricing(achoice)affectssalesvolume,which,inturn,shapes the company’s scale economies and bargaining power (both consequences).Theseconsequencesinfluencethecompany’slogicofvaluecreationandvaluecapture,so they too must have a place in the definition. In its simplest conceptualization,therefore, a business model consists of a set of managerial choices and theconsequencesofthosechoices.Companiesmakethreetypesofchoiceswhencreatingbusinessmodels.Policychoicesdetermine the actions a organization takes across all its operations (such as using

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nonunionworkers,locatingplantsinruralareas,orencouragingemployeestoflycoachclass). Asset choices pertain to the tangible resources a company deploys(manufacturing facilities or satellite communication systems, for instance). Andgovernancechoicesrefertohowacompanyarrangesdecision-makingrightsovertheothertwo(shouldweownorleasemachinery?).Seeminglyinnocuousdifferencesinthegovernanceofpoliciesandassetsinfluencetheireffectivenessagreatdeal.

DataandInformationforBusinessModelEvaluation

The starting point is to define some concepts that will allow us to describewhat abusinessmodelactuallyis.Todoso,wewillusetheninebasicbuildingblocksdescribedinthebusinessmodelcanvas(Osterwalder&Pigneur,2010).Morespecifically:• Customersegments• Valuepropositions• Channels• Customerrelationship• Revenuestreams• Keyresources• Keyactivities• Keypartnerships• CoststructureThedefinitionofeachbuildingblockforthepresentationofbusinessmodelsare:CustomersegmentsThe customer segments define the different groups of people or organizations anenterpriseaimstoreachandserve.ValuepropositionsThisblockdescribesthebundleofproductsandservicesthatcreatevalueforaspecificcustomer segment. Value propositions are delivered to customers throughcommunication,distributionandsaleschannels.ChannelsThis block describes how a company communicates with and reaches its customersegmentstodelivervaluepropositions.Customerrelationship

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Customerrelationshipsareestablishedandmaintainedwitheachcustomersegment.This block describes the types of relationships a company establishes with specificcustomersegments.RevenuestreamsRevenuestreamsresultfromvaluepropositionssuccessfullyofferedtocustomers.Thisblockrepresentsthecashacompanygeneratesfromeachcustomersegment–costsmustbesubtractedfromrevenuestocreateearnings.KeyresourcesKeyresourcesaretheassetsrequiredtomakeabusinessmodelwork.KeyactivitiesTheseworkbyperforming a numberof key activities. This blockdescribes themostimportantthingsacompanymustdotomakeitsbusinessmodelwork.KeypartnershipsSomeactivitiesareoutsourcedandsomeresourcesareacquiredoutsidetheenterprise.Thisblockdescribesthenetworkofsuppliersandpartnersthatmakethebusinessmodelwork.CoststructureThebusinessmodelelementsresultinthecoststructure.

EvaluationandAssessmentofBusinessModels

How can you tell if a businessmodelwill be effective? A good onewillmeet threecriteria.1. Isitalignedwithcompanygoals?Thechoicesmadewhiledesigningabusinessmodelshoulddeliverconsequencesthatenableanorganizationtoachieveitsgoals.Thismayseemobviousuntilyouconsideracounterexample.Inthe1970s,XeroxsetupXeroxPARC,whichspawnedtechnologicalinnovationssuchaslaserprinting,Ethernet,thegraphicaluserinterface,andverylargescaleintegrationforsemiconductors.However,XeroxPARCwasnotoriouslyunabletospawnnewbusinessesorcapturevalue from its innovations for theparentdue toadistressinglackofalignmentwithXerox’sgoals.

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2. Isitself-reinforcing?Thechoicesthatexecutivesmakewhilecreatingabusinessmodelshouldcomplementoneanother;theremustbeinternalconsistency.If,ceterisparibus,alow-costairlineweretodecidetoprovidealevelofcomfortcomparabletothatofferedbyafull-farecarriersuchasBritishAirways,thechangewouldrequirereducingthenumberofseatsoneachplaneandofferingfoodandcoffee.Thesechoiceswouldunderminetheairline’slow-cost structure and wreck its profits. When there’s a lack of reinforcement, it’spossible to refine thebusinessmodelbyabandoning somechoices andmakingnewones.3. Isitrobust?Agoodbusinessmodelshouldbeabletosustainitseffectivenessovertimebyfendingoff fourthreats, identifiedbyPankajGhemawat.Theyare imitation(cancompetitorsreplicate your businessmodel?); holdup (can customers, suppliers, or other playerscapturethevalueyoucreatebyflexingtheirbargainingpower?);slack(organizationalcomplacency); and substitution (can new products decrease the value customersperceive inyourproductsorservices?).Althoughtheperiodofeffectivenessmaybeshorternowadaysthanitoncewas,robustnessisstillacriticalparameter.Inordertoassessthebusinessmodelsforeachsolutionormeasure,wewillcombinethedataand informationcollectedthroughthebusinessmodelcanvaswithaclassicstrengths,weaknesses,opportunitiesandthreats(SWOT)analysis.TheSWOTanalysisiscommonlyusedinbusinessenvironmentsanditisusedtoanalyzeanorganization’s strengths andweaknesses and identifypotential opportunities andthreats. It is an attractive tool because of its simplicity but in combinationwith thebusiness model canvas enables a focused assessment and evaluation of anorganization’sbusinessmodel.SWOTanalysisasksfourbig,simplequestions:

• Whatareyourorganization’sstrengthandweaknesses?Thefirsttwoassesstheorganizationinternally.

• Whatopportunitiesdoesyourorganizationhaveandwhatpotentialthreatsdoes

itface?Thesecondtwoassestheorganizationpositionwithinitsenvironment.Toprovideagoodbasisfordiscussion,decision-makingandultimatelyinnovation,wewillaskthesefourquestionswithrespecttoboththeoverallbusinessmodelandeachofitsnineconceptsdescribedbefore.

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The data collection will be conducted through questionnaires and interviews withpartners. These questionnaires and interviewswill allow us to conduct a structuredSWOTassessmentofthebusinessmodelyieldingtotworesults:

• Asnapshotofwheretheyarenow(strengthsandweaknesses)• Suggestionsforfuturetrajectories(opportunitiesandthreats)

Thisvaluableinputwillhelpustodesignnewbusinessmodeloptionsandsuggestionsforreplicabilityandscalabilityofthemeasuresandsolutionsimplemented.

Public-PrivatePartnerships

Animportantpartoftheanalysiswillbebasedonprovidingtoolstoassessthefinancialsustainability of the different solutions implemented. In this regard the systematicidentificationandevaluationofdifferentoptionstoimplementthemeasuresmustbecarriedoutwith rigor. Inanenvironmentof supplyofpartlypublicgoodsandpartlyindividualgoods,whichcanbe financedwithpublicorprivatecontributions,directly(usage fees or contributions to investments) or indirectly (shadow tolls, savings,advertising, ...) and generate significant positive economic, social or environmentalexternalitiesisessentialtoconsiderallpossibilities,bothatthetimeofdiagnosisandexecutionofdifferentfinancialscenarios.Inthissense,theso-calledPublic-Privatecontinuum,andthatinamoresophisticatedmannercanbeshowninatwo-dimensionalmatrixofthepossibilitiesofPublic-Privatepartnershipbothintheownershipoftheassetandservicemanagement,isarigorouswaytopresentthispanoplyofpossibilitiesforPPPstodeveloptheactions2.

2 See for example: Delmon, J. (2010), Understanding Options for Public PrivatePartnershipsinInfrastructure,PolicyresearchWorkingPaper5173,TheWorldBank.

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Whenchoosingwhatarethebestalternativeswithinthistwo-dimensionalpublic-choicescenario, there are different tools developed from academia and from the owngovernment (Public SectorComparator, etc.) toperform theseassessments.What isneededistodeterminewhichofthesetoolsarethebestforthedifferentsituationsandevaluatethiscomplexcontextofdifferentalternatives.Furthermore,thedifferentformsofPPPcangenerateadditionalpoliticalproblemsofacceptanceofprivateparticipationinthesolutionsbecauseitcouldbeinterpretedbothasaprivatizationofprofitsorasocializationoflosses.Inthiscase,inalignmentwiththeobjectives of the project, we propose to introduce the concept of P4 where theorganizedparticipationofdifferentstakeholdersintheprocessesofP3(Public-Privatepartnerships) can be a strategic element to help ensure the general success of theactions.Themethodologytoaddthefourth“P”tothestrategyshouldbediscussedandagreed with the different municipalities involved regarding its participation culture(opengovernment,participativeprocesseswithcitizens,etc…).To make or propose the right combination of Public-Private partnerships for eachsolutionweshouldmakeanassessmentofthefollowingdimensions:(+)indicatesmostfavorabletotransfertoprivatesectorand(-)indicateslessfavorable:

• Transferringassets:1. Thespecificityofinvestments(+)2.Thecontrolofthequalityoftheprovision(+)

• Outsourcingprovision:1. Thespecificityofinvestments(-)

VarietyofPPParrangementsPrivate Management

contract,Franchsing,O&M

Affermage,Operatinglease

ConcessionOutsourcing Divestiture

Mixed ServiceContracts

Brownfieldprojects

Build-Operate-TransferBuild-Own-OperateDesign-

Build-Finance-OperateDesign-Build-Manage-Finance

etc..Greenfieldprojects

ConversionintoPublicEnterprisePerformancecontract

JointVenture

Public

PublicAuthority Cooperation

Public Mixed PrivateCONTROLOFASSETS

MAN

AGEM

ENTOFSERV

ICEPR

OVIDE

R

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2. Thecontrolofthequalityoftheprovision(+)3.Uncertaintiesinincome,costsandservicequality(-)Completenessofthecontract(+)4.Extra-contractualresponsivenessandlowexecutionrisk(+)5.Internalcapacitytomanageoutsourcing(+)6.Existenceofeffectivecompetitionbeforetheawardandduringthe

execution(+)Eachofthesevariablesshouldbeevaluatedinordertogetarelativevaluethatrankthesolutionintermsofamajoropportunitytobesuppliedbypublic,privateorPPP(thereisnotanabsolutevalue,sowecanobserveintherealworldseveralsolutionstothesameproblem).Secondly,PPPintimesofbudgetconstraintallowspublicsectortomakeinvestmentsthatitcouldnotaffordwithoutprivatesupport.Butthisalsocouldgenerateotherkindof problems aswhite elephants or pork barrels. So it’s necessary to develop a cleardecisionmethodtoavoidtheserisksandalsotransferefficientlytherisksandbenefitsbetweenpublicandprivatepartners.IfPPParemadefortherightreasonstheycouldbeagoodalternativetopublicfinanceandobtainpositivesocialandeconomicresults.