Chairman’s Report 2017
We have to face it, the DSM TCP has been in a better shape. There are a number of reasons for this. First of all a TCP needs a chair and vice-chairs. Although we’re lucky to have found two vice-chairs to replace Maria Alm of Sweden and Andreas K. Enge from Norway, who both changed jobs and stayed in the field of sustainability, but not in the DSM TCP.
Even Bjørnstad and David Shipworth have taken over and that is the good news. However, I am close to retirement and had to step down at the Executive Committee meeting in October. A successor hasn’t been found yet and there we have our first problem.
The second one is a more global one. Politicians make a lot of noise when it comes to support of the transition to sustainability, but even with initiatives like Mission Innovation and the Clean Energy Ministerial the financial and content support on research isn’t close to the point where it should be. An example: at the TCP Global day, the IEA leadership stated that the research budget of the three biggest ICT companies is double that of the global budget on Energy research.
The hurdles that governments create to finance Tasks of TCP’s are getting bigger and bigger and the freedom of experts that participate in the Executive Committee is getting more and more limited. Not only because of the further limitations of budgets, but also because policymakers seems to steer more and more towards the content and results of research. On one hand it is valuable that researchers are pushed to stay on the important and almost impossible track to deliver tools for necessary energy transition, but on the other hand the so-called guidance of policy makers is often done without enough understanding of both the research process and the content.
For DSM this results in a pace that is too slow to survive in the long run.
An important question that rises from these problems is whether or not DSM has reached it’s natural life span and has become redundant.
In my biased opinion the answer is that this is absolutely not the case.
I would like to challenge you to read this report in detail and see what work has been done, and how it is used in our participating countries. The knowledge of business models and behavior are crucial to support the transition to a new sustainable society.The material can be used both by the participants and by other TCP’s and the IEA secretariat. Delivering great stuff is in itself not enough reason to continue, you need great ideas for the future as well.
And there are… Demand response, increasing knowledge of business models that unites the public, the financial world and the energy market, digitalization and the route from product to service are just a couple of fields that need research and attention.
Debates on the use of data to support the transition is only beginning, where both rational and irrational arguments about privacy dominate and often block necessary development.
With the insight of DSM, in collaboration with other TCP’s IEA can play an even more important role than we play at the moment. As such I fully support the policy of IEA’s director Fatih Birol to mine the possibilities of the IEA network even more.
So, on behalf of all of us at the DSM TCP, I present you with our annual report for 2017 and call on you to support my successors by giving them the opportunities we have to work on sustainability.
Rob Kool, Chairman (retired October 2017)
Highlights & Achievements
The DSM University is a joint activity run between the DSM TCP and Leonardo Energy where Leonardo Energy is also responsible for the administration and technological support for the webinars and also markets these together with the European Council for an Energy Efficient Economy (eceee) who gives the DSM TCP access to their database of recipients of information.
According to plan, we have organised monthly webinars with speakers both within the DSM TCP and from companies and organisations with interest in energy efficiency. In total 37 webinars have been held by the end of 2017. Over the past four years, DSMU has evolved into a community of practice through which DSM practitioners meet on a monthly basis. So far, DSMU has engaged over 4,500 persons in 124 countries worldwide.
During 2017 Leonardo Energy changed their platform for administrating webinars, (see Leonardo Energy calendar: http://www.leonardo-energy.org/calendar) which has lead to a wider audience. The webinars are recorded and both slides and supporting material is made available for registered users. A flyer has been produced that provides data on past webinars and information on where material can be found for registration and downloading from Leonardo Energy and from YouTube (see: http://www.ieadsm.org/wp/files/DSMU-flyer-December-2016.corr.pdf).
The material from the DSM TCP is arranged in the following themes to make best use of the output from the different Tasks:
- The logic of DSM
- Energy efficiency – load level (technical issues)
- Flexibility – load shape (technical issues)
- Integration (with RES and distributed generation)
- Business models
During 2017, nine webinars were held:
- DSMU#29 Mind your business, towards a more user-centered businessmodel, Task 25, Renske Bouwknegt
- DSMU#30 From programmes to markets – how to leverage market forces for energy efficiency. Jan Rosenow RAP, Richard Cowart RAP and Steve Thomas IEA.
- DSMU#31 Integration of energy efficiency and renewable energy – multiple benefits!, Peter Lund
- DSMU#32 Big data for greater energy efficiency. Kornelis Blok
- DSMU#33 Blockchain applications for peer-to-peer community energy trading. David Shipworth
- DSMU#34 Innovative Business Models for Scaling up Energy Efficiency, Saurabh Kumar, EESL, India
- DSMU#35 Perform, Achieve and Trade (PAT) – An Innovative Programme for Promote Industrial Energy Efficiency, Ajay Mathur, TERI, India
- DSMU#36 Building Deep Energy Retrofit: Using Dynamic Cash Flow Analysis and Multiple Benefits to Convince Investors, Jan Bleyl, Task 16
- DSMU#37 How to design, implement and evaluate behaviour change interventions in a sector that is often overlooked but has huge energy efficiency potentials: hospitals. Rotmann, Sussman, Cowan
Task 16 – Innovative Energy Services – Phase IV Life-Cycle Costing; ‘Deep Retrofit’; Simplified M&V; Crowd-Financing & Energy Services Taxonomy.
Task 16 Phase IV, “Innovative Energy Services” started in July 2015 and will end in June 2018 and is working with energy service experts from countries around the world who have joined forces to advance know-how, experience exchange and market development of (mainly performance-based) energy services.
- Sustain a well established IEA DSM Energy Service Expert Platform for exchange and mutual support of experts, partners and invited guests;
- Support and follow up country specific National Implementation Activities (NIAs) in order to foster ESCo project and market development;
- Design, elaborate and test innovative energy and demand response services and financing models and publish them (Think Tank);
- Use the Task’s Energy Service Expert Platform as a competence centre for international and national dissemination and consultancy services (e.g. workshops, coaching, training…) and contribute to the “DSM University”.
The underlying goal is to increase understanding of performance-based ES as a ‘delivery mechanism’ to implement energy efficiency policy goals and projects: Pros and cons, potentials, limitations and added values of ESCo products in comparison to in-house implementation.
Key accomplishments in 2017
The Think Tank has worked on a variety of topics during 2017, which have led to publications and presentations at various national and international events. Some of it is still work in progress.
- Building Deep Energy Retrofit, Life Cycle Cost Benefit Analyses and Multiple Benefits. Task 16 Phase IV has a main focus on Deep Energy Retrofit (DER) of buildings in combination with Life Cycle Cost Benefit Analysis (LCCBA). From this work input from all participating countries was received and a paper for the eceee 2017 Summer Study was published. Based on this paper, Task 16 were invited to a special edition of the Energy Efficiency Journal in October 2017. For the publication, collaboration was extended to the Central European University who were invited as co-authors with a particular focus on work productivity increases through DER. In October, Office Buildings Deep Energy Retrofit: Life Cycle Cost Benefits using Cash Flow Analysis and Multiple Benefits on Project Level was submitted for peer review.
- Simplified Measurement & Verification approaches for demand side energy efficiency and renewable measures: Task 16 continued during 2017 to work on its simplified measurement & Verification (sM&V) approach, following up on the previous publication on “simplified M&V and quality assurance instruments”. The concept has been refined and prepared for a submission to an academic journal paper titled: Simplified Measurement and Verficiation Using Quality Assurance Instruments: A Proposed Concept for Energy, Water and Co2-Saving projects. Co-authors are Mark Robertson and Sarah Mitchel from Efficiency One, Nova Scotia;
In 2018 the following Think Tank activities are planned
- Continuing discussions as well as the peer review process and publication of the Task 16 paper Office Buildings Deep Energy Retrofit: Life Cycle Cost Benefits using Cash Flow Analysis and Multiple Benefits on Project Level in the special edition of the Energy Efficiency Journal and in other forums.
- Continuing the peer review process of the Task 16 paper Simplified Measurement and Verficiation Using Quality Assurance Instruments: A Proposed Concept for Energy, Water and Co2-Saving projects. Also continuing discussions with IPMVP and other professional bodies on the sM&V approach.
Further topics are subject to the Task Exerts inputs.
Task 24 – Behaviour Change in DSM Phase II – Helping the Behaviour Changers
Task 24 Phase I started its operation in June 2012 and was finalised in April 2015. A 3-year Task extension, Phase II, started in April 2015 and will be finalised in 2018.
The main objective of this Task is to take good theory (from Phase I) into practice to allow ‘Behaviour Changers’ (from government, industry, intermediaries, research and the third sector) to:
- Engage in an international expert network (‘The Experts)
- Develop the top 3 DSM priorities to identify the most (politically, technologically, economically and societally) appropriate DSM themes to focus on (‘The Issues)
- Identify and engage countries’ networks in the 5 Behaviour Changers sectors for at least one of the top 3 DSM themes to develop a collective approach (‘The people)
- Use and test a Collective Impact Approach to develop shared methodologies, guidelines and a common ‘language’ based on narratives to aid Behaviour Changers’ decision making of how to choose the best models of understanding behaviour and theories of change (a ‘toolbox of interventions’) (‘The tools)
- Standardise how to evaluate behaviour change programmes ‘Beyond kWh’ and ‘Beyond Energy’ including multiple benefits analysis (‘The measure)
- Collate national learnings into an overarching (international) story to understand, compare and contrast the different behaviour change approaches, risks and opportunities and which recommendations can be universally applied (‘The story).
Task 24 Phase II is divided into the following Subtasks
Subtask 0: Admin
Subtask 5: Social media expert platform
Subtask 6: Understanding Behaviour Changer Practices in Top DSM Areas (‘The Issues’)
Subtask 7: Identifying Behaviour Changers in these areas (‘The People’)
Subtask 8: Developing a toolbox of interventions to help Behaviour Changers (‘The Tools’)
Subtask 9: Standardising Evaluation beyond kWh (‘The Measures’).
Key accomplishments in 2017
During 2017 Task 24 has advanced significant work efforts in Subtasks, 6, 7, 8, 9 and 11. A large number of workshops, conference presentations, seminars and lectures have been given and stakeholders and expert networking and collaboration has been undertaken with 100s of experts. Collaborative efforts with IEA EBC Annex 66 have been initiated and Task 24 continues to support the IEA Secretariat where requested. Task 24 presented at the EGRD in Copenhagen. Task 24 now has over 80 publications, including primary literature publications in two highly impactful journals. Three major international behavior change conference have supported Task 24 to hold workshops. In addition Task 24 co-edited a highly-lauded Special Issue on storytelling. Task 24 work in this field in regarded as world-leading by social science experts.
In 2018 the following activities are planned
- Subtask 5: continue to present DSMU webinars, giving lectures and to publish, including peer-reviewed conferences and publications.
- Finalise Subtask 6 and 7 reports in all participating countries. Another three workshops will be held in New Zealand, Ireland and the US.
- Finish decision-making tree for Subtask 1 and 2 case studies and models of understanding behaviour. Publish final papers and reports on tools used in Task 24.
- Continue working on ‘Beyond kWh’ toolkit, testing it with Ireland, California and New Zealand. Finalise report.
- Finalise Subtask 10 report.
- Subtask 11: Hold another workshop and evaluation panel on hospital pilot on building operators’ behaviour. Finalise report.
Task 25 – Business models for a more Effective Market Uptake of DSM Energy Services
Task 25 focuses on identifying existing business models and customer approaches providing EE and DSM services to SMEs and residential communities, analysing promising effective business models and services, identifying and supporting the creation of national energy ecosystems in which these business models can succeed, provide guidelines to remove barriers and solve problems, and finally working together closely with both national suppliers and clients of business models. The longer-term aim of this Task is to contribute to the growth of the supply and demand market for energy efficiency and DSM amongst SMEs and communities in participating countries.
Key accomplishments in 2017
- An inventory of different existing business models, both in participating countries and also including global examples of successful business models was performed.
- Task 25 analysed what business models exist and what frameworks (market and policy9 accompany them.
- 4 strategies and business models for potentially effective business models and services in co creation with national stakeholders, e.g. suppliers and clients were developed.
- A face-to-face workshop with national experts and other stakeholders based on the analysis in Subtask 2 has been held.
- A second version of the beta version of the online toolkit Fit2Serve for business developers, which contains lessons learnt in a self-assessment form, were developed next to the written deliverables.
- In a paper written for the eceee 2017 Summer Study Task 25 highlighted guidelines with necessary policies and strategies of different stakeholders and their timing, to encourage market creation and mainstreaming of selected business models in participating countries. Task 25 is supporting additional ‘piloting’ activities in Austria and Sweden, where the toolkit ‘Fit2Serve’ will be tested with entrepreneurs.
- A final briefing positioning paper on the topic of policy system, economic system and the development of energy efficiency services was written.
In 2018 the following activities are planned
Phase 1 of Task 25 ended in 2017. The proposal on PHASE 2 of Task 25 Business models for a more effective market uptake of DSM Energy Services was approved in The Hague in October 2017 and a kick-off for Phase 2 is planned in 2018.
The second Phase of Task 25 will continually contribute to its earlier set objective of identifying an existing variety of service and use phase oriented business models providing EE and DSM services to SMEs and residential users (individuals and communities), analysing promising effectives business models and services for different sectors, identifying and supporting promising national energy ecosystems in which the most promising business models can succeed, providing guidelines to remove barriers and solve problems, and finally working together closely with both national suppliers and clients of business models. The longer-term aim of this Task is to contribute to the growth of the supply and demand market for energy efficiency and DSM amongst SMEs and communities in participating countries.
The benefits for the participating countries and for the DSM TCP will encompass:
- Overview of additional existing business models / user centered approaches in the different countries;
- Insight in best practice business models based on a comparison of business models in the participating countries;
- Training and exchange of valuable knowledge and learnings between EE business developers, service providers, researchers, policymakers and clients within and between participating countries;
- Access to relevant stakeholders, documents, and state of the art in the research field through participation in a new network of expertise and participation of this network;
- Best practice guidelines for policy makers and institutional stakeholders on how to support the uptake and creation of promising business models for energy services that effectively achieve load reduction at SMEs and residential communities. Actionable and tested programme for agencies as well as other context players to stimulate the uptake of EE services in their country.
- Developed and tested framework for effective business models for demand response/circular/…
- New knowledge on the working mechanisms of the service oriented business model: how to monetise add on-services; how to co-create and co-operate with multiple stakeholders etc.
Maintaining and increasing visibility of the Programme among its key audience continues to be a major activity of the Executive Committee. The principal tools available at present are the website, the Annual Report, the Spotlight Newsletter, the Programme Brochure, Task flyers and Social Media.
The Annual Report for 2016 was produced and distributed electronically to approx. 250 recipients in January 2017. It pulled together in one substantial document an overview of the Programme’s activities and details on each of the individual Tasks.
The Spotlight Newsletter is produced in electronic format only and is designed as a printable newsletter. It is distributed by e-mail to a wide list of contacts. Executive Committee members forward the newsletter to those national contacts that used to receive the printed version or they print and distribute hard copies. Four issues were produced in 2017 and included articles on:
Issue 64 – March 2017
- Chairman’s note
- Task 24: Creating “Magic” with Non-State Actors
- IEA DSM: at Work on Innovative Energy Services
- DSM University
Issue 65 – June 2017:
- DSM: How its definitions changed over time
- Deep Energy Building Retrofits: Using Multiple Benefits to Convince Investors
- IEA DSM at Work on Innovative Energy Services
- DSM Day in Dublin: Behavioural insights on energy efficiency in the residential sector
- DSM University
Issue 66 – September 2017:
- Chairman’s note
- DSM University
- US: What are the acutal costs of saving energy
- Ireland: SEAI report, “Behavioural insights on energy efficiency the residential sector”
- IEA global conference on energy efficiency
- Task 24: paper in ERSS Special Issue, “Storytelling and narratives in energy and climate change research”
Issue 67 – December 2017:
- The Final Liberation of Adam Smith
- Task 17. New partners welcome in next Phase of DSM, DG and Storage integration work
- Peer- to peer energy trading using blockchains
- DSM University
- India – Perform, Achieve and Trade (PAT): An innovative programme to promote industrial efficiency
- Task 24: New reports now online – Behaviour Change in DSM – Designing a behaviour change programme for hospital facilities staff
At the beginning of a new Task, a flyer is produced to stimulate interest in participating in the Task. When the work is completed, a second flyer is produced reporting on Task activities.
Analysis of visits to the website shows a worldwide readership.
The number of members on the DSM Facebook group and the Twitter account is increasing on a daily basis. Strong relationships with other social media energy efficiency mavens have continued to build in 2017 including the DSM Programme being showcased in the ‘Energy in Demand’ blog (www.energyindemand.com) and the eceee website via columns (www.eceee.org). Social media will continue to be a strong feature of the DSM Programme in 2018.