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Public versus private one-stop-shops for energy renovations of residential buildings in the EU

Panel: 5. A smart new start for sustainable communities

This is a peer-reviewed paper.

Authors:
Georgios Pardalis, Linnaeus University, Sweden
Krushna Mahapatra, Linnaeus University, Sweden
Brijesh Mainali, Linnaeus University, Sweden

Abstract

The current rate of residential building renovations in Europe is inadequate and attributable to the lack of integrated solutions in the market supported by appropriate business models. One-stop-shop (OSS) offers an innovative business approach, and it is acknowledged by the European Commission, in the Directive 2018/844/EU, as a transparent advisory and facilitating tool for the establishment of services relevant to energy efficiency renovations for buildings. This paper evaluates two different delivery mechanisms of OSS, namely public-driven and private-driven, using six examples of OSSs business models currently operating in five European countries. The study is based on document and records-based research, and the analysis of data is done through a standardized blank profile for each OSS including parameters based on the deliberations of Osterwalder and Pigneur's business model canvas.

A comparative analysis of the models has been conducted to identify repetitive patterns, commonalities, and differences between them. The study has shown that the examined OSSs are still in a developing stage, struggling to achieve enough scale, which indicates the need to lower their costs, reorganize their models and streamline the value chain to become attractive to their targeted customer segments. Public-driven OSSs appear to be, for the nonce, better positioned in the market and their reliance on public money allows them to achieve some expansion of their activities, even if this cannot be considered a sustainable business solution in the long run. Private-driven OSSs need to work harder to strengthen their position in the market and increase their attractivity. Towards that direction, the contribution of policy interventions and re-adjustment of existing financing mechanisms could be further examined.

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