The project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 745594.
The aim of the NOVICE project – over its 3-year duration – is the development and demonstration of an innovative business model for Energy Service Companies (ESCOs) that will provide energy savings to buildings and demand response (DR) services to the grid after renovating buildings or blocks of buildings. A dual revenue stream shall thus be enabled that can reduce payback period for investments in buildings renovations and accelerate the much-needed market uptake of the Energy Performance Contracting (EPC) based financing model. Adopting that model, ESCOs and Aggregators could jointly and in a coordinated manner tackle the energy efficiency, demand response and onsite generation market.
An investment of $10 Billion is anticipated globally in the energy value chain for demand response programs by 2020, that would in parallel incentivise consumers to actively participate (for financial benefits) while contributing to energy efficiency. At the same time, the revenue of ESCOs in Europe is being forecasted to grow very moderately from $2.7 billion in 2015 to $3.1 billion in 2024. NOVICE’s ambition is to provide the mechanism for a significant share of the DR market to be used in the renovation of European tertiary buildings through ESCOs. The main specific objectives of NOVICE for the realisation of that ambition are:
-Engage and train new actors and stakeholders (aggregators, ESCOs, technology providers, FMs, engineering consultants)
-Address regulatory, market, technological and financial barriers for dual energy services in building renovation
-Prescribe the building energy renovation technologies that increase demand response flexibility and energy efficiency
-Develop an innovative business model and a new Energy Performance Contracting template providing dual energy services.