NEON · Project

Bundled Energy Services That Help Neighborhoods Cut Costs and Carbon Together

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Imagine your entire apartment block or office park could buy, store, and share energy as a group — like a co-op, but for electricity. NEON figured out how to bundle energy-saving renovations, rooftop solar, battery storage, and smart demand-shifting into one package that a community can sign up for together. They tested this in 4 real communities across Europe and built the contracts, business models, and measurement tools to make it actually work. Think of it as turning your neighborhood into a mini power company that saves everyone money.

By the numbers

Citizen Energy Community pilot setups (residential, non-residential, mixed)

follower communities with replication plans

consortium partners

countries represented

project deliverables produced

62%

industry partner ratio in consortium

The business problem

What needed solving

Energy costs keep rising, but individual building retrofits are expensive and hard to finance on their own. Communities — whether residential blocks or office parks — lack a practical way to bundle energy efficiency, renewable generation, storage, and demand flexibility into a single affordable package with clear contracts and measured results.

The solution

What was built

NEON produced 25 deliverables including integrated energy service packages, EPC combined with Pay-for-Performance contracting models, measurement and verification methodology, building retrofit planning tools, and legal/business foundations for Citizen Energy Communities under EU Directive 2019/944. These were demonstrated in 4 community setups with replication plans for 7 more.

Audience

Who needs this

Energy Service Companies (ESCOs) looking to scale beyond single-building contractsProperty management firms managing multi-building portfolios with high energy costsMunicipal energy agencies setting up community energy programsDemand response aggregators seeking community-scale deployment modelsHousing associations wanting to reduce energy bills for residents

Business applications

Who can put this to work

Energy services and ESCOs

mid-size

Target: Energy Service Companies (ESCOs) offering building retrofits or energy performance contracts

If you are an ESCO struggling to scale beyond single-building contracts — NEON developed integrated service packages that combine building retrofits with renewable generation, storage, and demand flexibility under one contract. Their Energy Performance Contracting combined with Pay-for-Performance schemes was tested across 4 community setups. This lets you serve entire neighborhoods instead of individual buildings, increasing contract value while spreading risk.

Real estate and property management

enterprise

Target: Property management firms overseeing residential or mixed-use building portfolios

If you are a property manager dealing with rising energy costs across multiple buildings — NEON created a tested model for Citizen Energy Communities where residents collectively manage energy generation, storage, and consumption. Their approach was demonstrated in 4 community setups covering residential, non-residential, and mixed buildings. This means your tenants get lower bills, your buildings get higher energy ratings, and you unlock new revenue from demand flexibility.

Smart grid technology

any

Target: Smart grid solution providers and demand response aggregators

If you are a demand response aggregator looking for proven community-scale deployment models — NEON advanced control capabilities that make demand-side flexibility a manageable and procurable resource. With 16 consortium partners including 10 industry players across 6 countries, and replication plans developed for 7 additional communities, you get a validated go-to-market playbook for community energy services across European markets.

Frequently asked

Quick answers

What would it cost to implement these integrated energy services?

The project did not publish specific implementation costs. However, the business model combines Energy Performance Contracting (EPC) with Pay-for-Performance (P4P) schemes, meaning the service provider finances upfront costs and gets paid from actual measured savings. This significantly reduces financial risk for the community or building owner.

Has this been tested at a scale relevant to my portfolio?

NEON demonstrated its integrated service concepts in 4 Citizen Energy Community setups — covering residential, non-residential, and mixed building types. Additionally, replication plans were developed for 7 follower communities during the project, indicating the model is designed for scaling across different European contexts.

What about intellectual property and licensing?

NEON was a Coordination and Support Action (CSA), meaning it focused on developing service concepts, business models, and contracting arrangements rather than patentable technology. The deliverables — including business models, M&V methodology, and legal foundations — are likely available as open knowledge. Contact the coordinator for specific licensing terms.

Does this comply with EU energy community regulations?

Yes. NEON was specifically built around the Citizen Energy Communities concept as defined in EU Directive 2019/944. The project established legal and business foundations to enable faster market uptake under this directive, making it directly aligned with current European energy regulation.

How quickly could we deploy this in our buildings?

The project ran from September 2021 to May 2024 and produced 25 deliverables including retrofit planning tools and business model templates. Since the service concepts and contracting models are already validated in 4 community setups, a prepared ESCO or property manager could adapt and deploy within a typical EPC contract negotiation cycle.

Can this integrate with our existing building management systems?

NEON's approach includes advanced control capabilities for building operation performance and demand-side flexibility management. The project brought together 16 partners including 10 industry players in smart grids and energy management, suggesting the solutions were designed for integration with existing energy infrastructure.

Consortium

Who built it

This is a heavily industry-driven consortium: 10 out of 16 partners are from industry (62%), with 6 SMEs in the mix, coordinated by ENGIE — one of Europe's largest energy utilities. The consortium spans 6 countries (Switzerland, Cyprus, Spain, France, Italy, Serbia), giving it broad European coverage. With only 1 university and 2 research organizations, the balance tips strongly toward commercial application rather than academic research. For a business buyer, this means the outputs were shaped by companies that need to sell and deliver energy services, not just study them.

ENGIECoordinator · FR
COMET GLOBAL INNOVATION, SLparticipant · ES
CSEM CENTRE SUISSE D'ELECTRONIQUE ET DE MICROTECHNIQUE SA - RECHERCHE ET DEVELOPPEMENTparticipant · CH
GRID ABILITY SCARLparticipant · IT
R2M SOLUTION SPAIN SLparticipant · ES
AXPO ENERGY SOLUTIONS ITALIA-SOCIETA PER AZIONIparticipant · IT
FORUM PER LA FINANZA SOSTENIBILE ENTE DEL TERZO SETTOREparticipant · IT
R2M ENERGY SRLthirdparty · IT
ASOCIACION DE EMPRESAS DE ENERGIAS RENOVABLES - APPAparticipant · ES
GENERACIONES FOTOVOLTAICAS DE LA MANCHA SLthirdparty · ES
INSTITUT MIHAJLO PUPINparticipant · RS
ALBEDO ENERGIEparticipant · FR
UNIVERSITY OF CYPRUSparticipant · CY
INSTITUTO PARA LA DIVERSIFICACION Y AHORRO DE LA ENERGIAparticipant · ES
R2M SOLUTION SRLthirdparty · IT
TRAZA CONSULTORÍA, S.L.L.participant · ES

How to reach the team

ENGIE (France) coordinated this project. SciTransfer can facilitate an introduction to the project team.

Order a report on this consortium See ENGIE profile →

Next steps

Talk to the team behind this work.

Want to explore how NEON's community energy service models could work for your portfolio? Contact SciTransfer for a tailored briefing and introduction to the project team.

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