Global Marketing Organization Getting the work done - Marketplace of the European Innovation Partnership - Smart City and Solutions General ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Funding
Global Marketing and financing Smart City
Organization
Getting theSolutions
work done
Marketplace of the European Innovation Partnership – Smart City and Solutions
General Assembly, June 2018
Valerio Gori
Capital Projects & Economic Studies
valerio.gori@pwc.com
Action Cluster Business Models,
Finance and Procurement
businessmodels@eu-smartcities.eu
2
Smart City and infrastructure 3
We have been awarded this study with the objective to promote
scalable and transferable solutions to contribute reaching
the EU 20-20-20 climate action goals.
Further, the study aims to foster the knowledge base of the
EIP - SCC by analysing smart city solutions and initiatives that are
linked to the Strategic Implementation Plan.
PwC et al. (2016) Study analysing the potential for wide-scale roll-
out of integrated smart cities and communities solutions
4
Business cases
Overview of business cases identified
R&D, test and Some of the major cases of positive business cases identified based its
success to develop and test a standard, technology, integrated solution in
Different sell the product integrated pilot projects and then sell it replicating it entirely or partially.
ways to
succeed… Real estate- SCC solutions are an essential part of the development of new residential
areas.
based Business case is sustained by increased cost per square meter in property
selling and leasing.
…different
ways to Public utility Investment in SCC in some cases are not aimed at producing returns for
the investors. These cases are often related to innovation in public
services.
shape Costs for the development and installation of SCC solutions are sustained
by taxpayers.
solutions.
Improved
Investments that improve the way services or citizen private activities are
efficiency/ performed. It is i.e. the case for the sharing economy (cars, bikes).
shared economy
7
A few good tips…
…to start with
Consider all the elements that Technical perspective: successful
Comply with the
enable "common" businesses to solutions integrate
with
market. Solutions developed
be successful. These include a other Smart City
high level that do not match with
strong vision, project the society's needs have little components, they apply
governance and chance to be supported by their standards and they provide data
management. very users and beneficiaries. finalized to assure interoperability.
The analyses carried out demonstrate that there is no unique solution to the
successful roll-out of SCC solutions. 8Integrating city needs and project requirements
Plan and Pilot Expand and Attract Integrate and Exceed
Find ways to generate short term results Expand successful pilots, solidify Future execution on master plan objectives
while planning for the future partnerships, and share results with focus on integration
• Integrate with the Smart City Master Plan • Identify successful pilot projects and • Attract new financing opportunities based on
expand initial success
• Identify and launch targeted pilot projects and
“quick wins” • Enter agreements with global private • Evaluate whether existing initiatives need to
sector partners be expanded, shifted, integrated, or scaled
• Ensure governance and performance
back
management systems are in place to properly • Communicate results with local, regional,
operate and evaluate pilot projects and global stakeholders • Assess how technological advancements
have presented new opportunities
• Begin engaging the public and global private
sector partners
Need to balance short-term pressures to deliver results with long-term
benefits of partnering with private sector. 9Funding and Financing
Funding Financing
is the cash inflow to pay for the is a temporary provision of cash-flow
implementation of a project. It does not resources that is expected to be paid back
imply any repayment. at a specific point in time.
• Property taxes • Tolls and user charges • Public sector banks • Development
• Asset disposals • Commercial banks banks/multilaterals
• Business taxes
• Budget allocations • Municipal or project • Equity investment and
• Municipal income
received bonds infrastructure fund
tax
managers
• Grants received • Pension fund private
placement bonds • Leasing and vendor
finance
10Funding and financing
How SCC solutions get funded?
Small-scale projects Medium-size Large-scale projects
projects
• Crowd funding • Bond financing
• Venture capital • Financial products provided by
• Venture philanthropy commercial banks
• EU/national funds
• Specific programmes (i.e. EIC) • EU/ national funds
Small scale projects find it difficult to access to Medium-size project, depending on the context Large scale projects are that find it easier to
main funding and financing sources: and type of solution, can benefit from certain access to finance.
• Limited awareness of what the financial dedicated public support mechanisms, but • Promoters know the market and of the
market offers; range of products offered.
mostly rely on venture capitalists to have their
• Not very interesting to banks (too small to be solutions financed. • May involve major companies which blend
relevant). SCC into other businesses.
• Do benefit from public support
mechanisms.
Dedicated Financial instruments are designed to facilitate financial
support
11Funding and financing
R&D PILOT SCALE-UP / REPLICATION DEPLOYMENT
Grant Blending Financing
EIC
12Resources availability
…or the need for financing support
74%
CEF blending call 2017 success rates of proposals
of the H2020 proposal is
65%
of high quality… 45%
55%
35%
…yet only 11.6% supported
1st cut-off
Proposals retained for funding
2nd cut-off
Proposals not retained for funding
…which is being translated into a "blending facility”:
H2020 2014-2016 success rates of proposals
"A cooperation framework established between the
Commission and development of other public finance
institutions with a view to combining non-repayable forms of
86% 89% 86% support and/or financial instruments from the EU budget and
14% 11% 14% financial instruments from development of other public finance
institutions as well as from commercial finance institutions
2014 2015 2016
and investors."
Proposals retained for funding Proposals not retained for funding 13European Innovation Council (EIC)
The European Innovation Supported projects’ characteristics:
Council (EIC) pilot supports radically different from existing products, services or business
models;
innovators developing ‘high risk – high gain’-nature for investors;
breakthrough innovations with potential to scale up internationally.
the potential to create new Instruments:
markets and boost jobs, growth SME Instrument addresses SMEs with a radically new idea
underpinned by a business plan for rolling out marketable
and prosperity in Europe. innovation solutions and with ambitions to scale up;
FTI targets industry-driven consortia seeking a quick market
Context: The EIC pilot is running under the uptake of new solutions, and brings together actors with
Horizon 2020 research and innovation programme complementary backgrounds, knowledge and skills;
which ends in 2020. The new EIC will constitute
FET Open uses interdisciplinary collaboration to tap into Europe's
one of the main features of the new programme of
excellent science base for exploring radically new technologies,
Horizon Europe (evolution of the current H2020).
which may become the game-changers of the future;
Objective: Need to strengthen the support for
Horizon Prizes boost breakthrough innovation by fostering
enabling the emergence and rapid scale-up of
solutions to challenges which bring major benefits to society.
highly innovative enterprises.
14Opportunities under the new MFF
MFF 2021-2027
Focus on financing and simplifying
access to financial support
Budget: € 1,135 bn over 7 years period (1.11% of MS 27 GDP)
InvestEU Fund (based on EFSI success) will
Increment of allocations expected for:
contribute with € 15.2 m of EU budget with the
partnership of EIB and the National Institute of • 15 billion EUR in R&D and pilots in climate, energy and
Investment Promotion. mobility.
The InvestEU Fund will support resource
• CEF will continue to give priority to the urban nodes of the
Core Network. All urban nodes of the comprehensive network
efficiency through the integration of financial will become eligible under the new CEF for projects relating to
sources (currently fragmented) in new integrated the modernisation of existing infrastructure.
programmes and to simplify the use of financial
instruments. • HorizonEU, with €100 bn investments. New features are
designed as i.e. European Innovation Council (EIC): a one-
According to the European Commission, stop shop to bring the most promising ideas and support
InvestEU will generate € 650 m of new innovative start-ups and companies to scale up their ideas.
investments. Two main funding instruments, one for early stages and the
other for development and market deployment.
15You can also read
