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Last Updated: 7-2011
To develop a more sustainable district; two major systems need to be changed; more renewable energy generation and increasing the efficiency of current real estate. On this moment, no real investment is made due to a split-incentive by both systems. In this research a solution is searched by the developing the concept of a Local Energy Coalition community (LECC). A financial model is developed to determine if a LECC should invest in their own district to become energy autarky. This is done by modeling a geothermal installation in System Dynamics. The System Dynamics model calculates the profit of such investment, due to using a scenario driven planning model. The results of these methods are valued by the Net Present Value and the real option theory. The results are the financial options for a LECC to start developing a business model.