Deliverable 2.3: New Business Models, procurements schemes and financing mechanism for the smart city project

14 Jun 2017

The objective of this deliverable is to identify the path to be followed on project replication and on business models that will make projects similar to SmartEnCity economically feasible, without public subsidies. The recommendations are based on current ongoing lighthouse projects, and are made through recommendations on financing and funding schemes, on public procurement framework and on business models (following business model canvas). Recommendations are based on existing business models being implemented for working areas such as building retrofitting; energy supply and use; smart mobility and investments in ICT in Lighthouse projects.

The results of the deliverable are based on the ongoing diagnosis being developed in the Lighthouse Cities, identifying the existing gaps where advancement is required in order to comply with the European Commission´s aspirations and finalising with proposal definition at recommendation level.

This will provide Follower Cities and other European cities with useful guidelines on how to more efficiently reach the challenges on business models, public procurement and financing issues in Smart City projects.

As a first approach, context for business models, procurement and financing mechanism, based on European context, is presented. Current situation is defined with regards to the several issues related to business models, financing mechanism and procurement framework such as: market barriers, current framework, consequences and possible solutions being planned in the Lighthouse projects. This way contributions of the stakeholder of each Lighthouse project are integrated .

Based on market barriers analysed and gaps identified in order to meet European Commission’s ambitions and finally recommendations for public procurement, financing mechanism and funding options and business models are developed.

Recommendations are oriented in order to:

- i) Promote stakeholder engagement and coordination can be improved in order to promote better local stakeholder collaboration ecosystem.

- ii) Improve on how solutions, technologies, products and services can reach the market more effectively

- iii) Improve on how the market can be better focused and identified by businesses

- iv) How business models can achieve solving what new/current market needs.

- v) Develop new financing models in order to achieve improvement on cost/revenue, improve and reduce risks and uncertainty and limiting and reducing payback periods.

- vi) Identify the public procurement challenges in order to promote stakeholder collaboration and improve how solutions technologies, products and services reach in a better way the marketplace.

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