- Energy as a Service
- Energy Business Models
DER Are Driving the EaaS Market Forward
The energy as a service (EaaS) financing market is anticipated to grow rapidly between 2020 and 2030 as vendors that have been testing and honing their offerings and capabilities scale the solution. So far, most contracts in the market by volume have been focused on building efficiency. However, EaaS solutions are increasingly moving into onsite energy generation and microgrids as a service in addition to lighting, HVAC, and controls projects that have been leading the market.
New Deals Broaden the Horizons of EaaS Agreements
A deal between Centrica Business Solutions and National Exhibition Centre (NEC) in the UK is the most recent example of how distributed energy resources (DER) can be provided as a service to meet a variety of customer objectives. In the first deal of this type for Centrica Business Solutions, the company will finance the delivery of the project as a service, including design, installation, operation, and maintenance of three gas generators. The deal will enable NEC to realize significant energy savings while improving the resilience of the site, making it less reliant on grid power—all while spending only OPEX on the project and without assuming any performance or financial risk.
Another recent announcement that indicates continued momentum in onsite energy supply as a service comes from Schneider Electric and Huck Capital. The companies are partnering to deliver commercial and industrial onsite microgrids as a service for small and medium buildings with microgrids up to 5 MW. The partnership is intended to unlock the middle market to microgrid and EaaS solutions, signaling an expansion in how vendors perceive the addressable market for EaaS offerings.
EaaS Continues to Develop
These announcements continue to demonstrate the viability of EaaS among a varied set of potential customer profiles despite the ongoing pandemic. The market is reaching a tipping point with new players entering the market, vendors scaling beyond pilot projects, and EaaS project scope expanding into new technologies. Continued development and refinement of repeatable EaaS project models and customer education will be key for vendors looking to capture and grow market share. For detailed EaaS market forecasts and analysis, check out Guidehouse Insights’ report, Market Data: As a Service Financing for Energy Solutions.