Generating Efficiency As a Resource

Introduction

GEAR-UP will deploy an innovative market framework to finally create a market for energy efficiency at the scale of solar and wind.

Current State of Energy Generation

In 2022, 22% of Europe’s total electricity generation came from renewables. Everything from technologies to contracts is standardized. The TWhs generated are traded across markets.

Challenges in Energy Efficiency

In contrast, while being praised as the “first fuel” for years, Energy Efficiency (EE) goes largely unmeasured and there is little standardization. There is NO market for EE, and certainly no cross-border market. Saved KWhs cannot even be traded. This failure comes at an ever-higher social, economic, and environmental cost. The investment gap to meet 2030 targets alone is estimated at €2.75 trillion.

GEAR Framework Overview

By Generating Efficiency As a Resource, GEAR will test and deploy an innovative market framework to scale deep retrofits. The GEAR framework will overcome 4 key market barriers:

1. Split incentives between owner and tenant
2. Lack of deep retrofits
3. Lack of access to data-driven measured savings
4. Lack of access to institutional capital

Metering and Payment Structure

The GEAR Framework enables a building’s EE potential to be metered and paid for similarly to distributed renewable energy generation. The cost of the EE improvements is managed as part of the service charge of the building. The tenant pays the same for their electricity as before the renovation, but they experience the benefits of a more comfortable, well-managed building.

Role of the Energy Host

This will be enabled through the creation of the “Energy Host,” an entity that receives a mandate to utilize a building’s EE potential for up to 20 years.

Deployment Strategy

GEAR will be tested and deployed across the EU, starting in Ireland and Spain. The project partners are industry experts, with decades of commercial experience and a wide network across the EU, including JLL, which manages more than 26 million m² of non-residential floor area in Europe.

Conclusion

GEAR-UP presents a revolutionary, game-changing market initiative to decarbonize Europe’s built environment.