Although a relatively new business model, commercial & industrial (CI) Energy as a Service (EaaS) is expected to dramatically grow within the next decade, based on a new report.
According to cleantech research firm Navigant Research, the CI EaaS market by 2026 will reach $221.1 US billion.
Changes in the delivery of energy are the driving factor behind the rise of EaaS companies. In the old days, consumers would (and still do on many levels) get their energy from a central source (your local utility), be charged and billed a monthly rate. Some months your energy bill would be higher (winter and summer months especially) than others.
However, today we are seeing a shift being played out on the energy market stage. Navigant Research notes energy companies and sustainability managers are taking advantage of new business models and digitized technologies, which are helping to decentralize the energy markets.
“Navigant Research anticipates that these evolving grid and customer factors will converge to give rise to demand for vendor-based business model disruptors that can provide turnkey energy as a service solutions (EaaS),” said Navigant’s website.
Eaas has lots of potential in making the customer energy experience as un-limitless as possible. EaaS providers can manage many aspects of a consumer’s energy needs. Examples include energy supply, energy use, asset & program management, and strategy, according to Navigant.
EaaS companies can use innovative services, financial solutions & technological tools to ensure clients are happy with their energy system.
Players within the EaaS ecosystem include standard utilities, third-party vendors, and start-up companies, who are providing disruptive solutions within the technical, financing and procurement within the energy market, according to Navigant Research.
As EaaS establish themselves; energy portfolios will be outsourced to fully equipped companies “with a comprehensive set of technical financing and deployment options.” According to Navigant.
This report is in line with an overall shift in societal attitudes on energy. Concerns over a warming planet due to climate change, falling renewable energy costs, and Millennials wanting more choice in energy options will only help to fuel EaaS platforms heading into the third decade of the new millennium. Add other underlying factors including sharp price drop on lithium-ion batteries needed to make battery storage units, plus 34 billion connected devices within the Internet of Things eco system by 2020 will ensure EaaS companies are going to have very profitable opportunities soon.
As Warren Buffet said, “energy deregulation will be the largest transfer of wealth in history.” EaaS will play a part in this. Shortly, consumers may have options besides a local energy utility thanks to possible EaaS platforms.
What do you think of EaaS? Will they become a serious option for consumers within the energy market over the next decade? What has to happen for EaaS to grow not only in the US but Canada/Manitoba? Feel free to email at email@example.com, or follow on Twitter at @salayservices.