A System Dynamics Evaluation of a Sustainable Energy-Efficiency Business Model Integrating Performance Contracting, Supply Contracting, and Savings Insurance.
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| Title: | A System Dynamics Evaluation of a Sustainable Energy-Efficiency Business Model Integrating Performance Contracting, Supply Contracting, and Savings Insurance. |
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| Authors: | Kadri, Usain1 (AUTHOR), Dawood, Nashwan2 (AUTHOR), Al-Bazi, Ammar3,4 (AUTHOR) a.al-bazi@aston.ac.uk, Akinade, Olugbenga2,4 (AUTHOR) |
| Source: | Energies (19961073). May2026, Vol. 19 Issue 9, p2030. 36p. |
| Subject Terms: | *Business models, *System dynamics, *Sustainability, *Clean energy, *Greenhouse gas mitigation |
| Geographic Terms: | Europe |
| Abstract: | This paper evaluates a Sustainable Energy Efficiency Business Model (SEEBM) for small and medium sized enterprises (SMEs) in the European industrial sector. The sustainability-oriented model, developed by the authors, combines Energy Performance Contracting (EPC), Energy Supply Contracting (ESC), and Energy Saving Insurance (ESI) within a unified framework to support industrial decarbonisation. The study identifies key performance indicators and translates them into a System Dynamics model using a Design-Based Research approach. The model is built from secondary data drawn from 45 SME case studies in the European SMEmPower project and is validated through extreme condition testing and behavioural sensitivity analysis. Results indicate that the integrated model significantly enhances financial performance, reducing the average payback period from average 36 months to 10 months. Sensitivity analysis highlights the influence of contract duration, energy saving rates, and energy prices on both payback and emissions reduction outcomes. This research introduces a novel dynamic framework integrating EPC, ESC, and ESI, enabling time-based evaluation of investment viability and environmental impact. It offers a replicable decision support tool for policymakers and market actors seeking scalable, low risk pathways to SME decarbonisation. Overall, the model provides practical insights for improving investment decisions while accelerating the transition toward sustainable industrial systems across Europe. [ABSTRACT FROM AUTHOR] |
| Database: | Energy & Power Source |
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| Header | DbId: enr DbLabel: Energy & Power Source An: 193715926 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: A System Dynamics Evaluation of a Sustainable Energy-Efficiency Business Model Integrating Performance Contracting, Supply Contracting, and Savings Insurance. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Kadri%2C+Usain%22">Kadri, Usain</searchLink><relatesTo>1</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Dawood%2C+Nashwan%22">Dawood, Nashwan</searchLink><relatesTo>2</relatesTo> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Al-Bazi%2C+Ammar%22">Al-Bazi, Ammar</searchLink><relatesTo>3,4</relatesTo> (AUTHOR)<i> a.al-bazi@aston.ac.uk</i><br /><searchLink fieldCode="AR" term="%22Akinade%2C+Olugbenga%22">Akinade, Olugbenga</searchLink><relatesTo>2,4</relatesTo> (AUTHOR) – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Energies+%2819961073%29%22">Energies (19961073)</searchLink>. May2026, Vol. 19 Issue 9, p2030. 36p. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Business+models%22">Business models</searchLink><br />*<searchLink fieldCode="DE" term="%22System+dynamics%22">System dynamics</searchLink><br />*<searchLink fieldCode="DE" term="%22Sustainability%22">Sustainability</searchLink><br />*<searchLink fieldCode="DE" term="%22Clean+energy%22">Clean energy</searchLink><br />*<searchLink fieldCode="DE" term="%22Greenhouse+gas+mitigation%22">Greenhouse gas mitigation</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Europe%22">Europe</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: This paper evaluates a Sustainable Energy Efficiency Business Model (SEEBM) for small and medium sized enterprises (SMEs) in the European industrial sector. The sustainability-oriented model, developed by the authors, combines Energy Performance Contracting (EPC), Energy Supply Contracting (ESC), and Energy Saving Insurance (ESI) within a unified framework to support industrial decarbonisation. The study identifies key performance indicators and translates them into a System Dynamics model using a Design-Based Research approach. The model is built from secondary data drawn from 45 SME case studies in the European SMEmPower project and is validated through extreme condition testing and behavioural sensitivity analysis. Results indicate that the integrated model significantly enhances financial performance, reducing the average payback period from average 36 months to 10 months. Sensitivity analysis highlights the influence of contract duration, energy saving rates, and energy prices on both payback and emissions reduction outcomes. This research introduces a novel dynamic framework integrating EPC, ESC, and ESI, enabling time-based evaluation of investment viability and environmental impact. It offers a replicable decision support tool for policymakers and market actors seeking scalable, low risk pathways to SME decarbonisation. Overall, the model provides practical insights for improving investment decisions while accelerating the transition toward sustainable industrial systems across Europe. [ABSTRACT FROM AUTHOR] |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=enr&AN=193715926 |
| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.3390/en19092030 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 36 StartPage: 2030 Subjects: – SubjectFull: Business models Type: general – SubjectFull: System dynamics Type: general – SubjectFull: Sustainability Type: general – SubjectFull: Clean energy Type: general – SubjectFull: Greenhouse gas mitigation Type: general – SubjectFull: Europe Type: general Titles: – TitleFull: A System Dynamics Evaluation of a Sustainable Energy-Efficiency Business Model Integrating Performance Contracting, Supply Contracting, and Savings Insurance. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Kadri, Usain – PersonEntity: Name: NameFull: Dawood, Nashwan – PersonEntity: Name: NameFull: Al-Bazi, Ammar – PersonEntity: Name: NameFull: Akinade, Olugbenga IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 05 Text: May2026 Type: published Y: 2026 Identifiers: – Type: issn-print Value: 19961073 Numbering: – Type: volume Value: 19 – Type: issue Value: 9 Titles: – TitleFull: Energies (19961073) Type: main |
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