The energy-as-a-service market may still be in the early stages, but 2017 showed that demand for these turnkey solutions is likely to grow.
A report from Navigant Research in July underscored this trend with an estimate that the annual global market for the deployment of C&I EaaS will reach $221.1 billion by 2026.
“The EaaS market consists of third-party vendors, utility services companies, and potential business model disruptors deploying niche technical, financing, or procurement solutions like solar PV power purchase agreements, energy services performance contracts, and deregulated electricity market retail brokerage services,” the report explains. “As the EaaS market matures, it is expected to give rise to the outsourcing of energy portfolios and turnkey vendors equipped with a comprehensive set of technical, financing, and deployment model options.”
Early in the year, Ericsson and Panasonic announced an EaaS offering that the companies said will measure, monitor, and maintain energy infrastructure for mobile operators using big data analytics, energy management software, and batteries. Using the EaaS will reduce the cost of energy equipment ownership for mobile operators, enterprises, and governments by up to 20%, according to the companies.
“Energy-as-a-service is a new business model that is designed to make energy operations more efficient, smarter, and more sustainable,” Bradley Mead, head of managed services and network design optimization at Ericsson said at the time.
Fleet managers are also seeing new EaaS options emerge. In October, California-based electric vehicle startup Chanje and the EV charging station manufacturer eMotorWerks announced a new EaaS program for downstream fleet customers, CleanTechnica’s Kyle Field reported. Their program includes automatic dynamic load balancing so that fleet operators can maximize the charge to their vehicles within the electrical service limits of a given location, Field explained.
EaaS means finding a partner that can assume the risk. Steven Avadek, director and global head of sustainability for Citi Realty Services at Citigroup, spoke about EaaS at the 2017 Environmental Leader Conference. Citigroup, which has a real estate portfolio covering millions of square feet in 160 countries, is exploring an EaaS model as a way to reduce expenses and achieve budget certainty.
“This is a completely different way of looking at energy,” Avadek told Energy Manager Today. “A lot of firms could take advantage of this. They may not be the large manufacturers with large fixed sites, but firms that want to engage, be green, and don’t know how.”
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