3FOOD

Third Industrial Revolution Consulting Group
Yet, this authority provides the means to further increase and organize the flow of energy
resources in ways that enhance LSDFP/SEF. In fact, new tools are now in play as blockchains are
giving more power to individual consumers to negotiate without a single authority and match
energy resources with specific energy demands. 257
1.4 Deployment of the Sustainable Development Finance Strategy
The application of the Sustainable Development Finance Strategy, as described in the above
sections, can facilitate and accelerate the deployment of sustainable energy technologies
throughout all sectors of the economy. A series of key steps flow from the three building
blocks:
1. Creation of the Luxembourg Sustainable Development Finance Platform (LSDFP): The
LSDFP takes up a central role and acts as a one-stop-destination for capital providers and
project promoters (both single and aggregated).
2. Introduction of LuxSEF: The LuxSEF strategy is introduced as a key mechanism that
structures financing between aggregated pools of supply and demand, drives finance
supply, and provides project portfolios at infrastructure scale. The LSDFP plays a central role
in the establishment of the contractual arrangements between ESCOs, bond issuer/loan
providers, and program participants. To do so, the LSDFP relies on a team of technical, legal,
financial, and policy experts. Any financing at the scale discussed here will require a trusted
advisor participant – a party that is not profit oriented and represents program participants
to ensure savings guarantee obligations are met.
3. LSDFP prequalifies ESCOs based on their capacity to fulfil program operations, including
their size, pricing, etc. In doing so, LSDFP provides a strong market signal to the ESCO
market to develop in the direction of infrastructure-scale energy efficiency and on-site
renewable energy generation provisions.
4. Interested parties sign a non-binding letter of interest (LOI) and discuss their specific goals,
timeline, energy patterns, etc. with LSDFP.
5. The LSDFP brings together ESCOs and interested program participants. ESCOs perform nocost,
pre-contract audits and present initial energy savings proposal. Participants sign
guaranteed energy savings agreement with their selected ESCO. Guaranteed energy savings
257 Aviva Rutkin, Blockchain-based microgrid gives power to consumers in New York. 2 March 2016. In this case,
while solar panels on the roofs of terraced houses in New York City soak up sunshine, a pair of computers
connected to the panels quietly crunch numbers, counting how many electrons are being generated so that they
can be bought and sold as needed to neighbors rather than go through a central authority or utility. This project,
run by a startup called Transactive Grid, is the first version of a new kind of energy market, operated by
consumers, which may very well change the way we generate and consume electricity. Although not referenced
here, these arrangements can also include much more than heat and power, but also transportation fuels, water
resources, and the flow of other materials, goods and services within the Duchy of Luxembourg.
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