Exploring the role of servitization to overcome barriers for innovative energy efficiency technologies – the case of public LED street lighting in German municipalities

In this paper we analyse the case for public application of LED street lighting. Drawing from the energy services literature and transaction cost economics, we compare modes of lighting governance for modernisation. We argue that servitization can accelerate the commercialisation and diffusion of end-use energy demand reduction (EUED) technologies in the public sector if third party energy service companies (ESCo) overcome technological, institutional and economic barriers that accompany the introduction of such technologies resulting in transaction costs. This can only succeed with a supportive policy framework and an environment conducive towards the dissemination of specific technological and commercial knowledge required for the diffusion process

Modes of governance for municipal energy efficiency services – The case of LED street lighting in Germany

AbstractEnergy efficiency retrofits are often impeded by high perceived investment risks, long payback periods and a lack of skills. At the municipal level these issues are particularly pronounced as procuring, implementing, and managing retrofits can exceed existing municipal governance capacities. The diffusion of municipal LED street lighting as a replacement for conventional lighting serves as an example. This paper argues that technological (e.g. complexity and maturity), economic (e.g. selling services vs. products and financing costs), institutional (e.g. property situation and contracts) and competency barriers to retrofitting (e.g. lack of measurement capacity and qualified facilitators) translate into transaction costs. We develop a taxonomy of appropriate modes of municipal retrofitting governance based on transaction costs economics. The findings indicate that more market-based solutions, energy performance contracts in particular, can facilitate the procurement of innovative energy efficiency retrofitting solutions and associated investments among municipalities if neutral tenders, open-book accounting, municipal ownership and intermediary organisations allow municipalities to choose appropriate governance structures for particular technologies and retrofits

Drivers and barriers for municipal retrofitting activities – Evidence from a large-scale survey of German local authorities

Local authorities are key actors for implementing innovative energy efficiency technologies (retrofitting) to reduce end-use energy demand and consequently reduce negative effects of high energy use such as climate change and public budget deficits. This paper reports the results of a large-scale survey of German municipalities by assessing drivers and barriers for deploying LED street lighting as an example of innovative retrofits. The results indicate that competencies and capacities, transparency of the underlying technology base, and a clear proposition of savings are crucial drivers for municipal retrofitting engagement. Most significant barriers include lack of experience, the tendency to wait for future improvements of innovative energy efficiency technologies, and existing contracts with energy suppliers, manufacturers, or other conventional retrofitting contractors. Investments in municipal competency building (both regarding technologies and procurement) as well as diffusing standard tendering criteria and (public) monitoring of their effectiveness are highly recommended to accelerate the municipal modernization process

Shareholder Value vs. Nachhaltigkeit?

Die Bedeutung der Börse als weltweiter Vermittler von Eigenkapital hat in den letzten Jahren zugenommen. Daher hat für die börsennotierten Unternehmen auch die Ausrichtung der unternehmerischen Leistung auf eine Steigerung ihres Geldwertes, des Shareholder Value, an Bedeutung gewonnen. Wer sich heute mit Zielkonflikten und Synergien zwischen Marktwirtschaft und nachhaltiger Entwicklung auseinandersetzen will, tut gut daran, die Rolle der Finanzmärkte zu analysieren und transparent zu machen

Drivers and barriers for municipal retrofitting activities : Evidence from a large-scale survey of German local authorities

Local authorities are key actors for implementing innovative energy efficiency technologies (retrofitting) to reduce end-use energy demand and consequently reduce negative effects of high energy use such as climate change and public budget deficits. This paper reports the results of a large-scale survey of German municipalities assessing drivers and barriers for deploying LED street lighting as an example of innovative retrofits. The results indicate competencies and capacities, transparency of the underlying technology base, and a clear proposition of savings are crucial drivers for municipal retrofitting engagement. Most significant barriers include lack of experience, the tendency to wait for future improvements of innovative energy efficiency technologies, and existing contracts with energy suppliers, manufacturers, or other conventional retrofitting contractors. Investments in municipal competency building (both regarding technologies and procurement) as well as diffusing standard tendering criteria and (public) monitoring their effectiveness are highly recommended to accelerate the municipal modernisation process

Modes of governance for municipal energy efficiency services - the case of LED street lighting in Germany

Energy efficiency retrofits are often impeded by high perceived investment risks, long payback periods and a lack of skills. At the municipal level these issues are particularly pronounced as procuring, implementing, and managing retrofits can exceed existing municipal governance capacities. The diffusion of municipal LED street lighting as a replacement for conventional lighting serves as an example. This paper argues that technological (e.g. complexity and maturity), economic (e.g. selling services vs. products and financing costs), institutional (e.g. property situation and contracts) and competency barriers to retrofitting (e.g. lack of measurement capacity and qualified facilitators) translate into transaction costs. We develop a taxonomy of appropriate modes of municipal retrofitting governance based on transaction costs economics. The findings indicate that more market-based solutions, energy performance contracts in particular, can facilitate the procurement of innovative energy efficiency retrofitting solutions and associated investments among municipalities if neutral tenders, open-book accounting, municipal ownership and intermediary organisations allow municipalities to choose appropriate governance structures for particular technologies and retrofits

Sources of Finance in the Clean Technology Sector: Capital Structure, Financial Intermediation and Industry Life Cycle

In this paper, we discuss capital commitments from different sources of finance that are used in several key countries worldwide to finance clean technologies (CT). In the course of our analysis, we first elaborate on findings from literature that address the importance and implications of different sources of corporate finance including venture capital, private equity, corporate debt, public equity markets, acquisition finance and government grants. Second, we provide data on the volume of capital that has been invested in firms operating in the CT sector from different sources of finance during the period from 2002-2012. In addition to corporate sources of finance, we also elaborate on CT asset finance used to fund infrastructure projects. We find that the business life cycle concept is in large parts transferable to the industry level. Moreover, the data suggest the presence of interdependencies between different types of corporate finance as well as between corporate finance and infrastructure finance. Our results have implications for firms in the CT sector seeking capital as well as for policy makers. We conclude with an interpretation of the capital flows regarding their impact on the CT sector as a whole and provide an outlook of futures avenues of research in this field.http://ecgi.ssrn.com/delivery.php?ID=624013110082094069011024028108095011052056061029027087091072076125103069125121067074053002099029105061121072066025065069079070039041082054021075087019122125069011100062032055071013072008099026125098076116092108066125126119120065084029120002095092111&EXT=pdf&TYPE=2info:eu-repo/semantics/publishe

Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries

This research article explores the role of institutional innovation intermediaries in accelerating the commercialisation of (clean) technologies. Drawing on the finance and innovation intermediaries literatures, we show that financial barriers to eco-innovation can be partly overcome by particular functions of institutionalinnovation intermediaries; this in turn mobilises private finance along the innovation process. Therefore, we empirically evaluate the roles and instruments of institutional innovation intermediaries (innovation intermediation, policy support, public–private cooperation, financial instruments). Our contribution intersects both the finance and the innovation systems literature by exploring the finance mobilisation functions of institutional innovation intermediaries to address barriers to eco-innovation along the innovation process

Drivers and barriers for municipal retrofitting activities – Evidence from a large-scale survey of German local authorities

Local authorities are key actors for implementing innovative energy efficiency technologies (retrofitting) to reduce end-use energy demand and consequently reduce negative effects of high energy use such as climate change and public budget deficits. This paper reports the results of a large-scale survey of German municipalities by assessing drivers and barriers for deploying LED street lighting as an example of innovative retrofits. The results indicate that competencies and capacities, transparency of the underlying technology base, and a clear proposition of savings are crucial drivers for municipal retrofitting engagement. Most significant barriers include lack of experience, the tendency to wait for future improvements of innovative energy efficiency technologies, and existing contracts with energy suppliers, manufacturers, or other conventional retrofitting contractors. Investments in municipal competency building (both regarding technologies and procurement) as well as diffusing standard tendering criteria and (public) monitoring of their effectiveness are highly recommended to accelerate the municipal modernization process