Powering the energy transition at the district level_Cities4PEDs_AWB_final

monitored by the DSO or district heating operator (except for
fuel oil, wood, etc.) and complemented with simulation models
(including renovation standards, energy systems, etc.), unless
smart data is available.
↦
↦
Renewable energy production (kWh/year)
The total local production of renewable energy, including
on-site electricity production and renewable heat and cold
generation. Data on large-scale or collective systems (wind
turbines, district heating, etc.) is measured by the DSO.
Monitoring small-scale, individual production (solar PV,
heat pumps, etc.) requires a simulation model, unless smart
data is available.
CO2 equivalent emissions (CO2-eq/year)
All greenhouse gas emissions generated over a calendar
year by the same activities included in the primary energy
consumption indicator, compared to a baseline situation. The
CO2-eq emissions are calculated by using emission factors for
each energy source (usually set at the national level), based on
the total energy mix.
Economic parameters
We look at four typical indicators used to determine the economic efficiency
and cost of projects from a market perspective. As argued in Key 7, it makes
no sense to apply these indicators to the ‘cherries’ of a PED business case only:
isolated sub-projects of a PED with high returns and short payback periods.
Looking at such projects in isolation leads to even more negative financial
balances for more difficult projects, with low (or even no) returns and very long
payback periods. We therefore proposed to combine different sub-projects,
so that economic indicators reveal the overall financial picture and so that
the entire PED development remains feasible [see Key 7, p. 181]. It may also
be helpful to add additional qualitative requirements to these indicators. For
example, the focus could be specifically on new local jobs, tackling energy and
unemployment in the neighbourhood at the same time [see also Key 8, p. 188].
↦ Internal rate of return (%)
The average yearly yield on the invested capital, for the
duration of the investment. It takes three aspects into account:
the total initial investment cost, the expenses and incomes
through the years of exploitation (recurring costs on the
one hand; incoming rent, sales, or energy production on the
other), and the end value of the investment. It is an investment
performance measure that indicates how lucrative a project
would be. It allows both local initiators and potential investors
to compare this percentage with the yield of other investment
opportunities (such as bank deposits or company shares).
↦
Payback time (years)
The time it takes before an initial investment can be earned
back (through sale or rent, or through a decrease in energy
cost). This calculation will depend on estimates, of either the
additional incomes or the prospected prevented costs.
208
↦ New jobs created (#)
Number of directly and indirectly induced employment
opportunities in areas such as engineering, construction,
maintenance, consultancy, sales, etc. Data is collected through
involved partners, who provide the number of direct new
employees and report indirect jobs by applying a best-practice
multiplier number on direct employment opportunities.