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Financing Models for Energy Efficiency in Public Buildings and Street Lighting in Germany and Neighbouring Countries

  • Aleksandra NovikovaEmail author
  • Kateryna Stelmakh
  • Alexander Klinge
  • Ingmar Juergens
  • Matthias Hessling
Conference paper
Part of the Springer Proceedings in Energy book series (SPE)

Abstract

Investment in the upgrade of public infrastructure such as public buildings and street lighting provides high energy saving potential. Although it is a cost-effective greenhouse gas mitigation solution, budgetary constraints of its owners, who are often municipalities, lead to low refurbishment rates. To overcome this challenge, innovative financing solutions should be developed to attract other investors and reduce high up-front investment costs for the public budget.

The paper presents selected results of research, which aims to identify and suggest suitable models to upgrade public buildings and street lighting in Germany. It reviews financing models, which exist in Germany and neighbouring countries, including self-financing, debt-financing, third party financing, and public–private partnerships. The chapter further analyses these models using a common framework. In particular, it provides the overview of each model, identifies the projects to which it can be applied, specifies its advantages and disadvantages, as well as jurisdictions that have applied the model. The paper concludes with recommendations for German decision-makers on finding and implementing a suitable financing model.

Keywords

Energy efficiency investment Business models Intelligent lighting Energy efficiency financing Street light Public lighting Public private partnerships Energy performance contracting (EPC) Revolving fund 

Notes

Acknowledgements

Research conducted for this paper was a part of Working Package 4, Task 7 “Technical-systemic analysis with a focus on energy efficiency in buildings” of the System Integration project under the Kopernikus platform (ENavi—https://www.kopernikus-projekte.de/projekte/systemintegration). The project was financed by the German Federal Ministry of Education and Research (BMBF).

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Aleksandra Novikova
    • 1
    Email author
  • Kateryna Stelmakh
    • 1
  • Alexander Klinge
    • 1
  • Ingmar Juergens
    • 1
  • Matthias Hessling
    • 2
  1. 1.Energy Efficiency and Climate Finance DepartmentInstitute for Climate Protection, Energy and Mobility (IKEM)BerlinGermany
  2. 2.European Lighting Expert Association (ELEA)OltenSwitzerland

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