PROJECT DESCRIPTION
BACKGROUND
GEAR-UP will deploy an innovative market framework to finally create a market for energy efficiency at the scale of solar and wind. In 2022, 22% of Europe’s total electricity generation came from renewables. Everything from technologies to contracts are standardised. The TWhs generated are traded across markets. In contrast, while being praised as the “first fuel” for years, Energy Efficiency (EE) goes largely unmeasured and there is little standardisation. There is NO market for EE, and certainly no cross-border market. Saved KWhs cannot even be traded. This failure comes at an ever-higher social, economic and environmental cost. The investment gap to meet 2030 targets alone is estimated at €2.75 trillion. By Generating Efficiency As a Resource, GEAR will test and deploy an innovative market framework to scale deep retrofits. The GEAR framework will overcome 4 key market barriers: 1) Split incentives between owner and tenant; 2) lack of deep retrofits; 3) lack of access to data-driven measured savings; and 4) lack of access to institutional capital. The GEAR Framework enables a building’s EE potential to be metered and paid for similarly to distributed renewable energy generation. The cost of the EE improvements is managed as part of the service charge of the building. The tenant pays the same for their electricity as before the renovation, but they experience the benefits of a more comfortable, well-managed building. This will be enabled through the creation of the “Energy Host”, an entity that receives a mandate to utilise a building’s EE potential for up to 20 years. GEAR will be tested and deployed across the EU, starting in Ireland and Spain. The project partners are industry experts, with decades of commercial experience and a wide network across the EU, including JLL who manages more than 26 million m2 of non-residential floor area in Europe. GEAR-UP presents a revolutionary, game-changing market initiative to decarbonise Europe’s built environment.