The Qx Model for 100% Renewable Heat The following example of the Q1 district heating project in Gettorf, Schleswig-Holstein, conducted by Q.X Projekt GmbH, illustrates how a renewable energy-based heating supply concept can be successfully implemented. This model involves both local and regional actors from the public and private sectors. Notably, this model integrates the need to promote local interests with the aggregation of professional stakeholders. There is no universal solution for such projects, as they must always be adapted to the specific local conditions while considering the interests of all involved parties. The model includes five key stakeholders who collectively invest in the heating supply project: the manager and operator, the owners of local energy generation facilities, the municipality, a citizen representation through a cooperative, and external capital providers. The central conflicts of interest arise from the municipality‘s obligations for public service and public interests on one hand and private sector engagement on the other. Additionally, conflicts may arise between the interests of the cooperative as a representative of the citizens and the economic goals of private investors. Therefore, the question of which resources each limited partner brings to the table and with what objectives must be considered when allocating company shares. It is crucial that no party holds an excessively large share to prevent other stakeholders from losing interest. In the case of the Q1 project model, it is assumed that involving all five stakeholders is beneficial. Even though not all stakeholders might be involved in every case, their inclusion enhances the project‘s bankability. Lenders prefer projects with multiple participants as this significantly reduces the risk of defaults. However, a higher number of participants requires effective management of the increased complexity and transparency. Therefore, a balanced approach between the number of participants, complexity, and transparency is essential. An optimally structured model can minimize the required equity share, which allows for a higher leverage effect. It is particularly attractive if only 10% equity is needed, as this
increases the possibility of mobilizing additional funds without relying on external sources.
The Q1 project in Gettorf is currently testing this model to expand it to other suitable cities across Germany if successful. The prospect of accessing a larger market with this model is intended to attract investors with larger organizational structures – both external and cooperative – to participate. This could enhance professionalism, especially on the cooperative side, and improve access to more favorable financing options, which might not be fully utilized in single-project scenarios. The model is based on the legal structure of a GmbH & Co. KG, represented here by the Quartiersgesellschaft. This entity acts as the central player, taking on the roles of manager and operator. It technically implements and operates the concept while securing the financial resources provided by the limited partners. On the production side, the Quartiersgesellschaft aggregates regional renewable energy providers who supply various components of the heating supply system. To achieve 100 percent renewable energy, a diverse mix of generators and energy sources beyond the power grid is required to ensure high resilience and flexibility. By providing their generation facilities as technical resources, these providers participate as limited partners in the project. In practice, however, the operators of these facilities have their own business models and act as suppliers within the context of the supply concept. They are equipped with the necessary interfaces to the heating supply concept but do not necessarily provide the majority of the required financing. The total investment costs for the Gettorf Q1 heating supply concept, including the generation facilities, amount to €10,000 per resident, corresponding to a total volume of €80 million. This sum exceeds the financial capabilities of the involved parties, such as the facility operators and the municipality, necessitating external capital.
12 HOTCOOL no.5 2024
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