Towards an urban and energy transition 01

Where do we act? 02

Who do we target? 03

Partners

Beneficiaries

How do we tackle the transition? 06

Showcasingsolutions

Learningbyexperience

Planningcollaboratively

What do we propose? 07

Adrivingforceforenergytransition

Smartthinktankforwatermanagement

Ameansforatransportationreshape

Implementing the NeighborHub 09

Construction

Ongoingcosts

Synthesis 10©stemutz.com

Secondly, Switzerland’s new land-use law callsfor building in existing neighborhoods instead of constructingongreenfieldlocationstoallowthemostefficient use of the country’s limited constructibleland.

Two Swiss specificities aggravate the afore-mentioned challenges. First, Switzerland willundergo a significant population growth from 8.4 million to 9.8 million by 20352. Providing livingspace for an increasing population is particularlychallenging due to a significant part of the countrybeingmountainous.This,coupledwiththehighvalueplaced on direct democracy, citizen involvementand the importance of finding consensus, createsanenvironmentwherethetwonewlawscanonlybe implemented in an integrative and collaborativemanner.

Todothis,weneedtochangeourlifestyles,thewaywebuildandthewaywetravel.We need to engage in both an urban and energy transition.Thesechangesarebestachievedbyworkingonaneighborhoodscale,allowing forcommitmentandengagement from theentire community. The NeighborHub provides theidealplatformfromwhichthiswillhappen.Webelievethat localstakeholders fromboth thepublicandpri-vatesectoraswellasassociationsandNGOsarethekeytoaneffectivetransition.

The NeighborHub will promote Switzerland’s urbanandenergytransitiononsevendriving themes.Theseinclude:renewableenergy,watermanagement,wastemanagement,mobility,food,choiceofmaterialsandbiodiversity. It promotes these themes amongst thepopulationbybeingactiveonthree levelsof involve-ment.TheNeighborHubisashowcase of sustainable living, a space where neighbors can learn through experienceabouthowtolivemoresustainablyandaspaceforthecollaborative planning ofSwitzerland’sneighborhoodsofthefuture.

The NeighborHub provides the perfect space fromwhich a neighborhood can kick-start its urbanand energy transition, enabling Switzerland to createthemostsustainablehousing,neighborhoodsand lifestyles possible. By taking on this role, the NeighborHub becomes the home of Switzerland’s urban and energy transition.

As the world grapples with climate change and resource depletion,many countries are committingthemselvestotakingthenecessarymeasurestolimittheglobalincreaseintemperaturetoamaximumof2degreesCelsiusbytheendofthecentury.

Switzerlandtakestheseandothercriticalchallengesto heart. It aspires to protect its landscape fromurbansprawlwhiledrastically reducing energy con-sumption and increasing the amount of renewable energyused.

The NeighborHub provides the ultimate solutionto these critical challenges facing Switzerland.Firstly, as laid down by the country’s new energy law, Switzerlandmust end its use of nuclear power, dramatically increase use of renewable energy andlowerenergyconsumptionby43%in2035comparedto20001.

Towards an urban and energy transition

1

2

Candidates for urban transition

85%ofSwitzerland’spopulationof8.4million live in itsurban centers. These need to be densified3 in aqualitative way to avoid urban sprawl and conservethe country’s limited constructible land to allow forlongtermsustainablegrowth.Atthesametime,urbancenters need to provide sufficient living space that offers a high quality of life despite a growing popu-lation. To overcome these challenges and achievea qualitative urban transition through collaborativeplanning,urbancentersneedNeighborHubs.

Candidates for energy transition

" Energy cities "4aremunicipalitieswhichexecuteandactivelyencourageanexemplaryenergypolicybypro-motingrenewableenergy,eco-friendlymobilityandanefficientuseofresources.418ofSwitzerland’s2,294municipalities, including all of its largest cities have alreadybeenawardedthe" energycity "title." Energycities "representatargetmarketforNeighborHubsasthey already promote an energy transition, and canuse NeighborHubs to further their ambitions in thisareaofincredibleimportance.

Fribourg: representative of a market need

To contextualize the NeighborHub in a specific neighborhood with its specific stakeholders, wechosetheurban center of Fribourgasarepresenta-tiveofastrongmarketneed.Fribourgmustundergoanurbantransitionduetoahighpopulationgrowthof41%by2045,andisalreadycommittedtotheenergytransition, having obtained the " energy city " label.These two factors make Fribourg an urban centerwhichwilldefinitelyneedtheNeighborHub,andwhich thereforelendsitselfperfectlytocontextualizationoftheNeighborHub.

Switzerland’s urban centers

Where do we act?

Fribourg

Switzerland’s " energy cities " Switzerland’s urban centers & " energy cities "

3

Wearenotpresentingyournormalhomebutacatalyst for transformation on a neighborhood scale.Anurbanandenergytransitioncanhappenbygatheringstakeholderstogether.TheNeighborhubunitestwostakeholdergroupsthatcantakeonthischallengetogether:partners and beneficiaries.

Partners

The NeighborHub is composed of a collection ofpartnerswhoarewilling to invest in a new kind of infrastructure,onethatwillenablearapidandcoher-enturbanandenergytransition.

Private entities can demonstrate solutions byshowcasing their technologies in this exemplarybuilding, while public institutions can use it to carry out collaborative planning. NGOs or associa-tions can propose activities inside theNeighborHubtoraiseawarenessofsustainabilityorspecifictopicsrelevant inaneighborhood.Toestablish theviabilityand interest of having different stakeholders cometogether, we interviewed potential partners activein our target market of Fribourg : Switzerland’slargest construction company, Implenia, Fribourg’senergy supplier, Groupe E, and the city government of Fribourg. Due to Switzerland’s direct democracyandinstitutionalprocesseswhichrequirehighpartic-ipationfromallstakeholders,planningprocessesareparticularlylengthyandexpensiveasallpartieshaveampleopportunitytoslowdownorblockanykindofproject.ThisobstacletoachievinganurbantransitionisovercomebytheNeighborHub.

Who do we target?

4

The city of Fribourg has a major urban development process coming up,whichwill seethe creation of a completely new neighborhood.11acresofwhatarecurrentlymilitaryinstallationson prime real estate close to the city centerwillbe closed in 2020, and control of the land willbe passed from themilitary to the city for resi-dential development. During our interview withthe city’s architect,wewere able to confirm theNeighborHub’scapacity toactasaplatform for exchange between different stakeholders in the development of the new neighborhood.The projectwillrequirefiveyearsofplanningfollowedbyfifteenyearsofconstruction.Thecity’sarchi-tectsuggestedthattheNeighborHubcouldbethefirst building initially set up on the undevelopedland,andserveas thecentral planning location fortheprojectandlaterbecomingacentralmeet-ing point for the community whichwillpromoteasustainablelifestyle.

Groupe E has been trying to move ahead witha project to construct a small wind park around the city of Fribourg but is encountering resistance from various stakeholders like localresidentsandenvironmentalNGOs.TheycouldinthiscaseimagineusingtheNeighborHubasaplacewheretheycan,togetherwithotherstakeholders suchaslocalgovernments,createaplatform for discussionabouttheproject.Toachievethis,otherstakeholderssuchasnatureprotectionNGOsandcitizen associations could use the NeighborHubtodiscuss theprojectandfindcommonground,thistooenablingurbanandenergytransition.

Faster urban planning processes allow stakehold-ers to save time and money. They not only benefitconstruction companies like Implenia, but alsoenergy companies which encounter stiff resistance toprojectsaimingtodevelopproductionofrenewableenergy.

Impleniahasalready tried tobring stakeholders together to learn about their points of view andto be able to deal with them. The advantage ofthis is thatpotential solutions toconflict issuescanbefoundatanearlystage,reducing friction, expenses and loss of time during a potentiallylong process, from the formal launch of the projecttocompletion.

Implenianeedsaboutnineyearsfromthelaunchof a large real estate development project to itscompletion, a certain amount of this time beingused up by democratic processes where the projectisdiscussed,re-evaluatedandoftentakento court. The company saw that by involving the local neighborhood community from anearly stage, project length can be reduced by 10-15%.Theysee theNeighborHubasaperfect locationwherethisprocesscantakeplace,thuscontributingtofacilitatingtheurbantransition.

Who do we target?

Implenia

Groupe E

City of Fribourg

5

Thankstoitsdesign,itcanbeconfigured flexiblyfordifferentuses,thusmakingitsuitableforacommunityseekingaplacewherepeoplecanengageinavarietyofcommunity-basedactivities likeurban gardening,workshops on sustainability or tool borrowing to promoteasharingeconomy.Usersoftheinfrastruc-turealsobecomeitscustomersastheyrequestandusetheservicesitoffers.

Severalactivities and serviceswillbeproposedanddirectlyaddressed to the people who live or work in the neighborhood to further the energy and urbantransitionamongstthepopulation.Wehaveidentifiedthefollowingtargetbeneficiaries:

Firstly we have the early adopters who are mainlycharacterizedbytheiractive involvement on a com-munity level and seek a convivial neighborhood.

The NeighborHub’s design responds to the needsof early adopters as it creates a space where theylive out their lives being active and engaged on acommunitylevel.

Who do we target?

Thesecondgroupofbeneficiariesarethelate adopt-ers. They are initially indifferent about what theNeighborHub could bring them, but then later see the advantages based on the positive effects being created by the NeighborHub in their community.Thismotivatesthemtoalsotakepart inenablinganurbanandenergytransition.

TheNeighborHub’simpactwillthusproduceasnow-ball effect. Itwill grow from small significance to apieceofinfrastructurewhichgathersmomentumandpopularity amongst a community, steadily involvinganevergrowingnumberofpeople.

Beneficiaries

early adopters late adopters

6

Learning by experience

Solutionstothechallengesdonotonlylieinusingnewtechnologiesbutalso inadaptingone’s lifestyle.TheNeighborHub acts as a place where a community can acquire knowledge,permittingthemtoreassesstheir current lifestyle and make behavioral changesbased on this to becomemore sustainable. ThankstheNeighborHub’sflexiblespaces, itcanbeadaptedquickly to provide different learning environmentssuited toaspecificpurpose.Wecaneitherorganizeworkshopsonspecificthemessuchassavingwaterorenergyor inviteneighborstospendanight in the NeighborHubtoexperienceitsmanysustainablefea-turesandthenusetheseintheirownhomes.

Planning collaboratively

The last step is involving all stakeholders in the process of rethinking an urban area.Having discov-ered sustainable solutions and having learned andexperiencedtogether, people will want to go further and be included in more global discussions.

TheNeighborHub is the tool for suchan initiative, aneutral ground where different stakeholders in thevicinitywill gather to reshape the urban planning oftheirneighborhoods.Italsoservesasacentralpointfrom which new neighborhoods can be planned byincludingallstakeholders.

TheNeighborHubistheidealinfrastructuretogatherallthedifferentstakeholdersandestablishitselfinbuilt-upareas to kick-start the urban and energy transition, and raise awareness about how it can be carried out. Threelevelsofinvolvementarediscussedbelow.

Showcasing solutions

Urban and energy transition is often first tackledon the level of tangible and innovative solutions.Ongoingresearchincompaniesanduniversitieshelps developnewproductstocreatemoreinnovative and sustainable products.

The NeighborHub's modular envelope and spacescanbeusedtoshowcasethesesolutions,whichcanbeofdifferenttypes:high-end or low-tech and self-made or industrially manufactured.Butwhateverthesolution,theNeighborHubcanbeusedtoshowcase ittothepublictoexpand its use in people’s homes.

How do we tackle the transition?

7

TheNeighborHubproposeswaystocollectwater, toreduceconsumptionortotreatgraywater.Thelatterisimplementedinthebuildingasaphytopurification plant that, which at the same time as treating graywaterfromtheNeighborHub,isalsousedtoshowcase a sustainable systemthatcanbeintegratedintonewbuildings. This represents an opportunity for water- relatedcompaniestoreachnewclients.

ManyinnovativefeaturesarealreadyintegratedintheNeighborHub.Rain forecastsareused to inform theuserof thebestperiod todo the laundry (using rainwater) in order to have enough water stored in thetank.

On the other hand, theNeighborHub proposes easyimplementation features for homes that are also

effective and impactful such as metering showerwaterusage.Asmalldeviceontheshowerallowstheusertokeeptrackofwaterconsumption, theenergylabelonthedeviceinformingconsumerswheretheyareasfarasthatconsumptionisconcerned.Itcouldeven be possible for residents to benchmark theirwaterconsumptionwiththeirneighborsandcompetetoseewhocanusethelowestamount.

Among the different activities and services pro-posed in this multipurpose building, workshops tomeetneighborswhoarealsowillingtoimplementa localwater treatment systemcan be attended. Thisallows planning collaboratively in order to imaginea cost-effective phytopurification network being implementedonaneighborhoodscale.

The driving theme of energy concerns primarily theenergy managementdevelopedfortheNeighborHub.Thanks to local storage and grid exchanges, theNeighborHub uses predictive control. It receives forexample dailyweather forecast and uses aweatherstationforliveproductionmonitoring.Thus,a24-hourpredictionhorizonisusedtodefineoptimalelectricalmanagementwhilecoveringtheneedsofthehouse.

The NeighborHub proposes a semi-automatedsystemwhichusesatabletapptosupportuserswithseveral solutions to a situation. For instance, theyopenwindowswhen feelingwarm, but at the sametime the building is trying to use air conditioning toreduce the temperature. Our app provides severalpossiblesolutions.

For example if the Core, the heated part of theNeighborHub, istoodarkbut it theblindsareclosedand the light is at maximum intensity, the app willsuggestturningoffthelightsandopeningtheblinds. Tips like these will help users bemore proactive inthefutureandwillmodifythewayproblemsaredealtwith. Being aware of how technical elements workandhowtheyconsumeenergyisacrucialfirststeptobeingabletoreduceenergyconsumptionandmakeitmoreefficient.

What do we propose?

A driving force for energy transitionSmart think tank for water management

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A means for a transportation reshape

SuchanappisoneofthemanyexamplesofhowtheNeighborHubencourages learning by experience inanentertainingandefficientway.Convinceduserswillconsiderimplementingsuchatoolintheirownhometoreduceconsumption.

Thesoftwarewillprovideuserswithdifferentlightingconditions depending on the activity (comfort, workorcozy)orwillinformthemabouttheenergyproduc-tionconditionsofthehouseandwhetheritwouldbebetterornottoopenthefacade.

On the planning level,theaimistostartdiscussionsaboutneighborhoodenergygrids.TheNeighborHub’sCore will be the home of discussion for an energy-gridsetup.Thekeyaspectofsuchafeatureisthe optimization of energy production, consumptionand storage. In this way, instead of having severalbatteries in order to become autonomous, a singlebattery supplying the whole neighborhood could beconsidered.Theaimistoimplementsolarpanelson the neighborhood’s buildings to locally produceelectricityforthegridandtocomplementeachotherwellonaneighborhoodscale.

As a hub for the neighborhood, the NeighborHub includesmanyfeaturestoanswermobilitychallenges.Theaimistousefewercarsandincreasetheuseofsustainable means of transportation on an urbanscale. This is why the NeighborHub provides cargo bicycles and an electric vehicle for community sharing.

Bicycles are convenient for small distances suchas grocery shopping (5 km are covered every day in Switzerland for that purpose and mostly bycar), contributing to fewer traffic jams, lowercarbonemissions and a healthy body. The NeighborHub’scargobicyclesoffer a convenient andcleanway forresidents or the business community to carry largeobjectsorproductsaroundtown.

The NeighborHub also offers an electric car whichis shared by the community. Today, 92 % of motor vehicle commuters in Switzerland are alone duringtheirjourney5.Sharingaridewithevenjustonepersonintheneighborhoodwilldividethenumberofcarsbytwo,reducecostsforusers,freeupparkingandroadspace,enhancequalityoflife(moregreenspaces)andreducetheamountoffundswhichneedtobeinvestedininfrastructurebythegovernment.

What do we propose?

TheNeighborHub’sSkin,thenonheatedspace,istheidealplace tohouseabicycle repair station andalltherequiredtools-inallweatherconditionsandunderperfect lighting conditions. It promotes the use of bicyclesinthecommunityasaccesstomaintenanceismadeconvenient.Userscaneitherhavethebicyclerepaired,orcanlearnhowtodoitthemselvesinregu-larly-providedworkshops.

The Core meeting room is the space where theneighborhood’s mobility will be redesigned. TheNeighborHubactsasthecentralmeetingspacewhereallstakeholderscometogethertoredefine transport in a neighborhoodandthecity itbelongsto.Withagrowingpopulationwhich is increasinglymobileandtraveling longer distances everyday, Switzerlandhasto find new ways to manage mobility within its ex-isting infrastructure. The NeighborHub provides the perfectspacewherestakeholders,includingresidents,politicians,publicadministratorsand representativesfromtransport-relatedcompaniescancometogethertojointlydevelopnewsolutions.Apartfromactingasameeting space, theNeighborHub itself acts as anexamplebybeingamobility hubforitsneighborhoodbyofferingasharedelectriccarandbicycles.

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Theas-builtNeighborHubisestimatedtocost6900,000CHF7.Whenadjusted forpurchasingpowerparity totheUS,thisamountisequaltoabout638,300 USD8. The NeighborHub’s prefabricated components areSwiss made to promote local economyand includehigh-end technologies.

ThecostoftheNeighborHubwillbereducedwhenitis industrially-produced.Thewooden frame ismadewith efficient advanced machinery that enables industrial production. Finally, by adapting the build-ing to Swiss standards that require fewer technicalfeatures (ie no air conditioning and no fire safetysystem), we can estimate that the final product willcost800,000CHF.

Asshownbytheabove-mentionedinterviews,publicinstitutions and companies are convinced of theneed for such an infrastructure. They will thus beinclined to enter a partnership and supply land fortheNeighborHub.Thecostofsuch land isvaluedat200,000CHF9.

The total investment can be summarized as anannual cost taking into account the building’s life expectancy (25years10), theamortizationand the in-terestrate(2%).

Referringtheinvestmenttoannualcosts(60,000CHFperyearwiththeland)helpscomparetheinvestmentcapability of different stakeholders (public / privateinstitutions andassociations) and shows that it is averyaffordable expenditure for long-term impactful resultsindrivingtheurbanandenergytransition.

The potential partners’ investments in fixed assetsin 2016 stood at 61,243,000 CHF for Implenia11,107,820,000CHFforGroupeE12and583,000CHFforWorldWildlifeFund(WWF)Switzerland13.ThecityofFribourg spent 32,000,000 CHF on architecture andurbanplanningin201614.

Based on the 60,000 CHF total investment costswhich include financing, amortization and interest,the total annual cost for a collection of four equallypayingpartnersisnomorethan15,000CHF(10,460USD takingpurchasepowerparity intoaccount)peryearfor25yearseach.

Thismakes settingup aNeighborHub in a commu-nityhighlyaffordablenot only for large corporations,but also for governments and even for non-profitorganizations. The partners relative investment intothe NeighborHub is small compared to their owninvestment.

NeighborHub Building Costs Swiss Francs

NeighborHubBuilding 800,000

LandforNeighborHub 200,000

TOTAL FOR BUILDING & LAND 1,000,000

NeighborHub Cost per Year Swiss Francs

InterestRate 2%

BuildingLifeExpectancy 25

AnnuityFormula 0.051

TOTAL YEARLY COST 60,000

A coordinator of the buildingwill be responsible forallocating the different spaces to the needs of theusers. The coordinatorwillwork to create adiverse user group and ensure that each activity offered intheNeighborHubhasastrong link to the 7 driving themeswhichdefinetheNeighborHub.

They will also manage the fee-paying activities suchascarsharingorrentaloftheheatedspaceforcommunityworkshopswhichenhancesustainability.

Operating the NeighborHub will lead to annualexpenses due to maintenance, activities andmanagement.

Implementing the NeighborHub

Construction Ongoing Costs

10

Anoverallbreak-evenbetweenexpensesandrevenuewill be established. Revenue will come from rental(electricalvehicle+rentalspace)orfrommembership.

Membership will allow people to access different servicesandactivitiessuchassharedtoolsorrentalofspaceintheNeighborHub.Thiswillbuildupasenseofempowermentof thecommunityandhelp realizetheobjectivesoftheurbanandenergytransition.

1 Swissfederallawonenergy,Switzerland

2 Swisspopulationforecast,Switzerland

3 Urban centers that need to be densified according to

" ProjetdeterritoireSuisse "strategies

4 Citédel’énergie,Switzerland

5 MobilityandTransportreport2015,Switzerland

6 1USD=1CHF

7 Seecostestimate

8 Purchasing power parity: Prices in Switzerland are

around41%higherthanintheUSA

9 400 square meters at 500 CHF / square meter =

200,000CHF

10 25yearssinceitiswhatmostofthetechnicalsystems

warrantiesspecify.Thestructurewill lastmoreifwell

maintained.

11 Annualreport2016,Implenia

12 Annualreport2016,Groupe E

13 Annualreport2016,WWFSwitzerland

14 Annualreport2016,CityofFribourg

MarketpotentialforNeighborHubsishighnotonlyinSwitzerland,butintheentireworld.Thewholeplanetfacessimilarchallengesofagrowingpopulationandthe urge to take on climate change with innovativesolutionsofvariouskinds.Asacountrywithparticularpressure in theseareas,Switzerland is the ideal testbed toprove that theNeighborHubcansuccessfully- that is effectively and affordably - bring about therequiredurbanandenergytransitiontheworldneeds.

The NeighborHub facilitates urban and energy transition by involving all relevant stakeholders - individuals, companies, government bodies andNGOs. This wide scope of involvement is of majorimportanceintheenergyandurbantransition,whichcan only be achieved by changing behaviors and lifestylesinandwiththeentirecommunity.

The NeighborHub provides the perfect space toachieve this through its environment where newtechnologycanbeshowcased, sustainability canbeexperienced, and where future neighborhoods can bethoughtoutanddevelopedcollectively.

Byacting in these threeareas, theNeighborHubwillbecomethehomeofSwitzerland’senergyandurbantransition, and so be key in creating a sustainablefutureforthecountry.

NeighborHub Revenue Swiss Francs

CarsharingCirca 2 hours/day at 15 CHF/hour 11,000

RentalofspaceCirca 45 CHF revenue/day 16,500

Membershipfees200 members paying 70 CHF/year 14,000

TOTAL REVENUES 41,500

Synthesis

RESULT 1,500

Notes

NeighborHub Expenses Swiss Francs

Coordinatorsalary2,000 CHF/month for PT employment 26,000

Buildingmaintenance1% of house value 8,000

Materialsforactivitiesandservices 6,000

TOTAL EXPENSES 40,000