3FOOD

Third Industrial Revolution Consulting Group
Figure 8: Visualization of CO 2 Production in a Traditional Neighborhood Heated by Natural Gas (Lighter
colors indicate lower values)
New Business Models and Financial Schemes
The energy sector is transforming to more effectively encompass new technologies and
solutions. It also includes advanced software and hardware to enable greater control and
interoperability across grid elements. All of these components are operating within an Internetenabled
free market, where it is envisioned that technologies and grid systems can be
automated to barter over the proper way to solve mutual problems, and settle on the proper
price for their services in near real-time.
Commonly referred to as transactive energy platforms, these systems represent a way of
creating a level playing field for producer (as well as consumer) investment decisions. In these
types of systems, all parties act autonomously and there is an expectation of transparency;
regulators oversee the system to prevent abuse. Standardized platforms can be local or span
large regions (e.g., neighborhoods, municipalities, countries).
These platforms are being tested—along with the market and regulatory changes previously
discussed—in demonstration settings throughout Europe and other jurisdictions. Through these
projects, new business models and financial schemes are emerging. A summary of these
emerging models are provided, along with a specific proposal, in the next section, to establish
funding mechanisms for accelerating the sustainable technology (SusTech) sector in
Luxembourg.
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