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What’s Energy-as-a-Service? How will it help companies?

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The surge in temperatures across the world and climate change is a reality that threatens our very existence. Low-carbon greener technologies are in demand and companies, nations, and societies wish to become carbon positive at their respective levels.

To understand Energy-as-a-Service (EaaS), we need to first understand how energy is currently consumed. Energy gets generated from a source (mostly coal-based or thermal in India) and then gets transmitted and subsequently distributed to end customers.

Also Read: The Top 5 Industries getting transformed by Artificial Intelligence

With EaaS, companies will offer end-to-end management of the customer’s energy needs. They bring in-depth expertise that enables them to understand a customer’s energy consumption in detail. These companies will also try to understand the current energy management practices, devices used, and combine the data with their expertise to recommend changes that will save energy in the long run and enhance dependability on cleaner energy sources.

What are the benefits of EaaS?

  1. No upfront CAPEX investments – Organizations would not have to invest in electric devices, sensors, controllers etc. They can directly deal with EaaS company which can create a subscription model as per the requirements.
  2. Manage crests and troughs of energy usage better – Organizations may operate at full workforce potential during certain times of the day. The energy consumption during such times may be very high. During off-business hours, this consumption may be very low. With EaaS companies, energy utilization will be optimized to a great extent.
  3. Energy efficiency – With EaaS as a model, the EaaS company will not only take care of upkeep and maintenance of the electric utilities but also ensure that the infrastructure of the organization is equipped with the latest technology which is smart and energy efficient.
  4. Fillip to its Carbon Neutrality goals – With ESG being at the core of a company’s goals, they are now focused on driving sustainability related efforts. An EaaS company will give their ESG and sustainability goals a huge fillip. Their ESG score can go much higher which can, in turn, help them to create a better credit profile and enable them to raise capital at more favorable term.
  5. Optimization in administrative efforts – The humongous administrative efforts spent towards the energy and power needs of the enterprise can be vastly reduce by having an EaaS company on board. This can help the Administration heads and their teams to focus more on other critical administrative tasks such as enhancing the employee experience. Hence, they can contribute significantly to factors such as employee retention and attrition management.

As we increasingly go digital and focus on renewable energy, we will see a significant surge in use of electric vehicles, IoT based devices, and many more distributed points of energy usage within organizations. A wide array of energy needs and access points may need to be managed. Moreover, there would be constant pressure to optimize the energy consumption, not just from an expense perspective but also from the ESG score point of view.

It can be assumed with confidence that such factors will play out in the very near future and hence EaaS might be a smart option for organizations to adopt. It can help them to channel their efforts on to the core business and help the company to accelerate growth.

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