CIRCULAR BUSSINESS MODELS FOR SOLAR POWER
Solar power generates nearly 4% (and still growing) of Europe’s electricity demand. The strong growth of the solar photovoltaic (PV) market in Europe is expected to continue. Driven by the national binding 2020 renewable targets and the recent solar tenders, Solar Power Europe foresees that the EU will return to strong growth in the coming years – with a 45% growth rate expected for 2018 and 58% in 2019.
The CIRCUSOL aims to provide systemic circular business solutions to the solar power industry to achieve higher resource efficiency, therefore support a truly sustainable transition towards a low-carbon renewable energy future. CIRCUSOL will address these challenges by using the full potential of circular business models, in particular, the Product-Placement Service (PPS) in terms of real environmental and economic impacts for the solar power industry and with replication potential for other industries.
This project is awarded by the European Commission with a H2020 programme Grant of 7,014,892,76€ and a total budget of 8,255,590€. CIRCUSOL started in Abril of 2018 and will run for 4 years.
FOUR OBJECTIVES FOR A UNIQUE PROJECT:
CO- CREATE SOLAR PSS VALUE PROPOSITIONS WITH END-USERS
- DEMONSTRATE BUSINESS VIABILITY FOR PSS PROVIDERS
- INCENTIVIZE “DESIGN FOR CIRCULARITY”
- DEVELOP “SECOND-LIFE” PATHS – REUSE, REFURBISH, REMANUFACTURE
NEW BUSSINES MODELS AND ADVANCED TECHNOLOGIES
Besides becoming a spearhead sector in demonstrating a path driven by systemic services towards a circular economy in Europe, the CIRCUSOL project is aimed at achieving the following specific goals:
- Demonstrate real benefits of PSS business models for resource efficiency in the solar power sector, by installing second-life (defined in this project as re-use, refurbish or remanufacture) PV modules and batteries in 3 large-scale demonstrators under PSS contracts in the project; and by simulating the long-term impact on circular economy KPIs with the diffusion of designed PSS models.
- Demonstrate market potential and business viability of solar power PSS business models, by implementing PSS models in 5 large-scale real-life demonstrators covering three major end-user segments in three European countries (France, Belgium, Switzerland).
- Pave the way for high supply quality and market confidence in second-life PV Panels and batteries by developing cost-effective labelling and certification protocols.
- Underpin economic viability of remanufactured electric vehicle battery for stationary renewable applications, by developing an in-depth cost and application analysis for remanufactured EV batteries, and by deploying the remanufactured batteries at two demonstrator sites under commercial contracts.
- Establish business incentives for circular product designs in the PV supply chain, by bringing the supply chain together to analyse end-of-life management needs, circular design options, business impacts and develop business incentives with a co-creative approach.
- Develop validated systemic circular business model innovation methodologies and tools for broader use, a co-creation facilitation process, a system simulation model with online interactive tool, a circular business experimentation process and an Asset Database ICT platform.
- Maximize project impacts to support the societal transition towards a circular economy, by effectively disseminating and exploiting project outcome to well-defined target user groups as well as the public. CIRCUSOL will deliver a total of 5 business plans, 2 business cases, replication potential assessment including at least 3 other European countries, guides and workshops for business, academia and policy makers, and will directly reach more than 30,000 European residents before the end of the project.
RESULTS EXPECTED FROM THE PROJECT
CIRCUSOL wants to offer tangible innovations for the solar energy, second life PV certificates and battery labelling/ certification and cost/application analysis. With those 5 demonstrator they will try to validate market acceptance, business viability and resource efficiency benefits. All of this will result in the following:
- Circular solar PSS business models with demonstrator validation.
- Labelling and certification protocols for 2nd life PV modules and batteries.
- Cost and application analysis for 2nd life PV modules and batteries.
- PV design-for-circularity business impacts and incentives.
- Asset Database ICT platform prototype.
- Generic circular business innovation methodologies and tools (eco-system simulation model CBM design framework and co-creation process, circular business experimentation).
- Policy analysis findings.
The CIRCUSOL project contains an effective approach to provide both benefiting environmental, social and economic impacts.
- Create new business opportunities, in services for end-users and in the product supply chain
- Create local employment
- Potentially increase European enterprise competitiveness by developing circularity as a differentiating strategy.
- Increase resource efficiency throughout the value chain, with reduced waste output and demand for raw material input
- Accelerate transition towards clean, renewable energy for all, with reduced dependency on subsidies
- Reduce energy consumption and GHG emission
- Increase public acceptance of second-life products
- Promote societal awareness in circular economy and participation in circular innovation.