IEA-RETD Publishes Report on Business Models for Renewable Energy

February 2012: The International Energy Agency's (IEA) Implementing Agreement on Renewable Energy Technology Deployment (IEA-RETD) has published a report entitled “Business Models for Renewable Energy in the Built Environment.” 

The paper aims to provide policymakers and other market actors with knowledge on the potential for new and innovative business models to stimulate renewable and energy efficiency technology deployment in the built environment. The paper reviews categories of business models for sustainable energy in the built environment, including the product service system model, models based on new revenue models, and those based on new financing schemes. Related to these categories, the paper analyzes specific models such as: energy supply contracting; energy performance contracting; integrated energy contracting; the use of a feed‐in remuneration scheme; and Property Assessed Clean Energy (PACE) financing.

The paper recommends a stronger and more active role for policymakers in the area of the built environment, suggesting they, inter alia:  support energy contracting business models; facilitate the leasing of energy equipment as well as support banks in offering ‘soft leases'; and utilize policy to address regulatory barriers across sectors.

IEA-RETD Implementing Agreement is one of a number of Implementing Agreements on renewable energy under the framework of the International Energy Agency (IEA). Its mission is to accelerate the deployment of renewable energies by providing stakeholder with information and recommendations on cross cutting issues concerning the sector. [Publication: Business Models for Renewable Energy in the Built Environment]