The project

SENSEI enables energy efficiency to be rewarded as an energy resource and a new grid service while turning the energy efficiency retrofit project’s value into an investable asset for private financing.

SENSEI combines pay-for-performance (P4P) arrangements with the Energy Performance Contracting (EPC) model and engages in negotiation games with preliminary stakeholders. This offers the possibility for stakeholders to shape the SENSEI business models according to their needs.

In making buildings more energy-efficient and attractive for third-party investors, SENSEI is fostering the business community to contribute to the EU climate goals while avoiding the construction of new power plants and reducing grid infrastructure costs.

Energy Efficiency

Energy efficiency can become a valuable resource and be rewarded in the energy service capacity market

SENSEI examines the three main mechanisms to reward energy efficiency as an energy system resource and draws recommendations for future efforts in the European Union:

  • Dedicated energy efficiency markets, such as Energy Efficiency Obligations (EEOs), are a proven way of rewarding energy efficiency
  • Capacity markets should enable energy efficiency to compete fairly
  • Network operators should be regulated to align their incentives with energy system goals through performance-based regulation (PBR), an approach taken in the United States and in recent pilot programmes in the United Kingdom. 

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