Energy efficiency in commercial buildings: capturing added-value of retrofit
Journal of Property Investment & Finance
Article publication date: 1 July 2014
The purpose of this paper is to investigate, the functioning of value creating configurations and stakeholder interactions in networks of organisations of the retrofit industry for commercial buildings.
A value approach was applied to develop a model of retrofit activities. A Europe wide stakeholder engagement, consisting of over 50 face-to-face interviews with key informants with energy efficiency retrofit (EER) knowledge and expertise, informed analyses on flows of both tangible and intangible value for commercial EER projects.
Given the need to expand the EER marketplace, the sustainability of EER processes is as important as the sustainability of EER project outcomes. Understanding value creation in retrofit processes is crucial to successfully harnessing the available energy savings potential from the built environment.
The increasing importance of externalities, such as carbon, means that previously unaccounted for costs are now being considered in business models. For EER projects, the challenge is to respond to this new business environment, while maintaining adequate value for stakeholders. For commercial property developers, this means a growing impetus to understand the value propositions of other EER stakeholders.
The evaluation of value creation across business relationships such as those of the construction industry has not been conducted in a systematic manner to date. This paper provides a novel application of value analysis. Interrogating materials and monetary flows, value interactions between stakeholders and stakeholder perception of value are vital in fostering the long-term capacity of the EER sector.
This work is conducted as part of the UMBRELLA (Business Model Innovation for High Performance Buildings Supported by Whole Life Optimisation) project, a 7th Framework Programme funded SME targeted collaborative project (Grant Agreement No. 314343), which was developed to address Work Programme EeB.NMP.2012-3, Development and validation of new “processes and business models” for the next generation of performance based energy-efficient buildings integrating new services. The views expressed herein are those of the authors and do not necessarily reflect those of the European Commission or of the UMBRELLA project partners.
Morrissey, J., Dunphy, N. and MacSweeney, R. (2014), "Energy efficiency in commercial buildings: capturing added-value of retrofit", Journal of Property Investment & Finance, Vol. 32 No. 4, pp. 396-414. https://doi.org/10.1108/JPIF-01-2014-0008
Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited