Change is surging through the energy sector. A shift to a new Energy-as-a-Service (EaaS) business model is transforming the market, benefitting customers and boosting the deployment of low-carbon technologies.
At the same time, the climate crisis is pushing energy providers to search for new ideas on how to provide clean power in modern, connected cities. An opportunity exists for these companies. How? With the new Energy-as-a-Service (EaaS) business model.
The Energy-as-a-Service approach shifts from asset-focussed, centralised power generation and the sale of it to passive consumers. Instead, it offers end-to-end management of a customer’s energy assets and services.
By combining the client’s resources into a large ‘smart energy community’, EaaS providers can merge markets, offer predictable load balancing and upgrade the grid in a number of different ways.
Because of the physical, digital and communication infrastructure required, a wide range of players can take advantage of EaaS. Major industrial equipment companies and electricity firms are already developing Energy-as-a-Service offerings. And so are telecommunications, technology and oil & gas companies, who have particular strengths they can capitalise on. It won’t be long before larger renewable developers and start-ups join in.
How fast and how big the Energy-as-a-Service market grows depends on several factors, which include technology, economics, politics, regulations, consumer trends and sustainability issues.
This report examines four possible future energy scenarios, depending on the balance of power:
These are early days. Companies looking to offer Energy-as-a-Service will need to form partnerships and collaborate to succeed. Over time, competition will likely intensify in specific segments. As providers gain experience, we will see horizontal and vertical integration of players, through mergers and acquisitions.
Read more about the scenarios and the changes companies can make today to be the leaders of the sector tomorrow.
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