Global Energy as a Service (EaaS) Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Global Energy as a Service (EaaS) Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

The global energy as a service (EaaS) market is currently in a state of growth, driven by the increasing adoption of distributed energy resource systems along with the widespread availability of smart devices, growing demand for energy efficiency, technological advancements, government incentives, urbanization, decentralization of energy systems, and changing customer behavior. The integration of IoT and data analytics further boosts adoption.

However, the global energy as a service market is restrained by high initial costs of distributed energy systems, integration complexity due to existing old energy infrastructure, a lack of awareness, regulatory barriers, and long payback periods.

What is EaaS (Energy as a Service)?

The Energy as a Service (EaaS) model is an innovative business approach that transforms the traditional concept of "energy as a commodity" into a system where energy management is outsourced. This model, includes energy supply services and additional services, such as consultation, system installation, and usage monitoring software, through subscription-based plans. This approach relieves customers from the burden of upfront capital expenditures and provides them with more flexibility and convenience.

Renewable energy sources, such as solar and wind, are excellent examples of the "as a Service" model in the energy market. For instance, a "photovoltaic as a service model" would allow consumers to avoid acquiring solar panels and paying for installation upfront. Instead, they would only pay for the actual use of the panels.

Under this model, the provider bears the responsibility for upfront capital expenditures, such as purchasing the panels and handling installation. Moreover, the provider also offers subscription-based services, which include maintenance, repairs, and eventual replacement of the panels with newer, more energy-efficient ones. Customers can access all these benefits through a subscription plan.

Drivers

Rising Adoption of DERs (Distributed Energy Resources)

The growing adoption of distributed energy resources (DERs) is a significant driver of the energy as a service market.

Distributed Energy Resources (DERs) refer to decentralized and localized energy technologies and systems that generate, store, or manage energy close to the point of consumption. Unlike traditional centralized power plants, DERs are scattered throughout the distribution grid and can be integrated into both residential and commercial settings. Some common examples of distributed energy resources include solar photovoltaic systems, wind Turbines, energy storage systems (ESS), combined heat and power (CHP) systems, Microgrids, fuel cells, electric vehicles (EVs), smart appliances, and home energy management systems.

The integration of these distributed energy resources into the grid can lead to a more resilient, flexible, and sustainable energy system, reducing the need for large-scale centralized power plants and enhancing overall energy efficiency. DERs play a vital role in the transition to a more decentralized and clean energy future.

One of the key reasons for the rising popularity of DERs is their ability to provide localized and sustainable energy solutions. As concerns about carbon emissions and environmental sustainability continue to escalate, there is a growing demand for cleaner and more renewable energy options. DERs, such as solar and wind, contribute to reducing greenhouse gas emissions and minimizing the reliance on fossil fuels, aligning with global efforts to combat climate change.

Moreover, DERs offer increased energy resilience and reliability. By generating electricity close to the point of consumption, they reduce dependency on long-distance transmission lines, mitigating the risk of power outages and disruptions. This is particularly important in regions prone to extreme weather events or vulnerable to grid failures.

Another factor driving the distributed energy generation market is the potential cost savings they offer. As technological advancements and economies of scale continue to drive down the costs of renewable energy sources, such as solar panels and energy storage systems, DERs are becoming more economically viable. Businesses and consumers can benefit from reduced energy costs and, in some cases, even generate revenue by selling excess energy back to the grid through net metering or other incentive programs.

Furthermore, the increasing adoption of DERs is facilitated by supportive government policies and incentives. Many countries and regions have implemented favorable regulations, tax incentives, feed-in tariffs, or other schemes to promote the integration of renewable energy technologies and distributed energy resources. These policy measures encourage businesses and homeowners to invest in DERs, further driving the growth of the energy as a service market.

For instance, the global installation of rooftop solar PV has increased consistently over the years due to the support of the government in the form of subsidies and other favorable policies.

Restraints on the EaaS Market Growth

The integration complexity due to existing old energy infrastructure is one of the major restraints on the global energy as a service (EaaS) market. This is because many countries have old and outdated energy infrastructure that is not designed to accommodate the integration of new technologies, such as renewable energy and energy efficiency measures.

For example, in the United States, the electric grid is largely based on a centralized model where power is generated at large power plants and then transmitted to consumers over long distances. This model is not well suited for the integration of renewable energy, which is often generated in small, distributed locations.

In order to integrate renewable energy into the grid, it would be necessary to make significant upgrades to the grid, such as installing new transmission lines and substations. This would be a costly and time-consuming process, and it is not clear that all countries would be willing or able to make these investments.

Another example of the integration complexity due to existing old energy infrastructure is the challenge of integrating energy efficiency measures into buildings. Many buildings are not designed to accommodate the installation of energy efficiency measures such as solar panels or insulation. This can make it difficult and expensive to integrate these measures into buildings, which can discourage businesses and consumers from adopting them.

Overall, the integration complexity due to existing old energy infrastructure is a major restraint on the global EaaS market. This is because it can be difficult and expensive to integrate new technologies and energy efficiency measures into old infrastructure. As a result, many countries may be slow to adopt EaaS solutions, which could hinder the growth of the market.

Segment Analysis by End User

The commercial sector is currently dominating the global energy as a service market. The market segment, which includes businesses, institutions, and organizations with high energy consumption, is at the forefront of adopting EaaS solutions for various reasons, including cost savings, sustainability goals, regulatory compliance, and access to advanced energy technologies.

Regional Analysis

During the forecast period, North America is expected to dominate the global energy as a service (EaaS) market, supported by various factors. Chief among these are the region's increasing adoption of renewable energy, driven by government policies, the declining costs of renewable technologies, and a rising demand for sustainable energy solutions.

Additionally, the commercial and industrial (C&I) market's growth in North America is a significant driver for EaaS expansion as businesses seek to reduce energy costs and enhance energy efficiency.

Moreover, the favorable regulatory environment in North America, with supportive policies for renewable energy and energy efficiency, further boosts the market's development. While other regions like Europe, Asia Pacific, the Middle East, and Africa are expected to experience substantial growth in the EaaS market, North America is projected to maintain its dominant position throughout the forecast period.

Current Status and Ongoing Initiatives

The existing role of traditional electricity retailers is shifting to that of energy service providers for all types of consumers. Smart grid and smart metering systems are being invested in by energy service providers (ESPs) in significant economies such as Australia, China, Europe, and the United States. These make use of modern data analytics to help users optimize their energy consumption.

Opportunities

Demand response and load management programs present opportunities for EaaS providers to collaborate with businesses and industries to optimize their energy consumption patterns. By incentivizing energy users to shift their demand during peak hours, EaaS can contribute to grid stability and reduce the need for additional power generation capacity.

The ongoing electrification trend, including the widespread adoption of electric vehicles (EVs), opens up opportunities for EaaS providers to offer EV charging infrastructure and related energy services. By integrating EV charging with renewable energy and energy storage, EaaS can support the sustainable growth of transportation.

The growing interest in sustainable finance and impact investment presents an opportunity for EaaS providers to attract funding for renewable energy production projects and energy efficiency initiatives. By aligning with environmental, social, and governance (ESG) criteria, EaaS companies can access capital from responsible investors.

Major Trends

Microgrid and Decentralization: The concept of microgrids and decentralized energy systems is gaining traction as they enable a more resilient and reliable energy supply. EaaS providers are developing solutions that integrate renewable energy sources with energy storage and microgrid technologies to serve remote areas and enhance grid resilience.

Digitalization and IoT Integration: The integration of digital technologies and the Internet of Things (IoT) in energy management is enabling real-time monitoring, control, and optimization of energy consumption. EaaS providers are leveraging data analytics and IoT devices to deliver more efficient and customized energy solutions.

Impact of Electric Vehicles: The increasing adoption of electric vehicles (EVs) is influencing the EaaS market. EaaS providers are exploring opportunities to integrate EV charging infrastructure and provide EV-related energy services.

Recent Market Developments

In August 2023, the California Energy Commission (CEC) approved aggregated home batteries' participation in an incentive scheme to lower customer net load during extreme events.

In May 2023, E.ON collaborated with Energy Systems Catapult and Heatio to develop new green finance models, especially heat as a service (HaaS) and energy as a service (EaaS), in order to expand and enhance the UK's burgeoning green finance sector.

In April 2023, Schneider Electric and GreenYellow (a sustainable energy service company) collaborated to deliver Energy-as-a-Service (EaaS) microgrid solutions to medium- and small-sized businesses in Europe's commercial and industrial sectors.

Sunnova Energy International, Inc., a major U.S. Energy as a Service (EaaS) provider, has won the ISO-New England Forward Capacity Auction for the third time in a row, gaining an additional 38 megawatts in the recent FCA17 auction. Sunnova currently has the most wholesale market capacity of any behind-the-meter solar and battery storage developer in the New England region.

Intertrust, one of the world's leading trusted distributed computing and rights management technology provider, and EIPGRID, a major distributed energy resource management company, have announced the launch of a new Energy-as-a-Service (EaaS) system for telecommunications operators looking to reduce soaring energy bills, reduce carbon emissions, and increase their sustainability footprint.

The new market research report from Blackridge Research on the Global Energy as a Service Market comprehensively analyses the EaaS market and provides deep insight into the current and future state of the industry.

The study examines the drivers, restraints, and regional trends influencing Global EaaS market demand and growth.

The report also addresses present and future market opportunities, market trends and developments, the impact of COVID-19 on the global energy as a service market, important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and the market share of key players.

Further, the report will also provide Global EaaS Market size, demand forecast, and growth rates.

What Do We Cover in the Report?

Global Energy as a Service Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain market growth.

The report includes a meticulous analysis of market dynamics, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and as a guide for you to analyze the degree of impact.

Global Energy as a Service Market Analysis

This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations

This section provides an assessment of COVID-19's impact on global energy as a service market demand.

Global Energy as a Service Market Size and Demand Forecast

The report provides global market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.

Global Energy as a Service Market Industry Analysis

The report examines the critical elements of the Global EaaS industry supply chain, its structure, and the market participants.

Using Porter's five forces framework, the report covers the assessment of the global EaaS industry's state of competition and profitability.

Global Energy as a Service Market Segmentation and Forecast

The report dissects the Global Energy as a Service Market into segments based on end user, and geographical regions. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, regions with largest market share, government policies and regulations, and market outlook.

In addition, market size, demand forecasts, and growth rates will be provided for all regions.

Following are the notable countries covered under each region.

North America: United States, Canada, Mexico, and the Rest of North America

South America: Argentina, Chile, and the Rest of South America

Europe: Germany, France, the United Kingdom (UK), Russia, and the Rest of Europe

Asia-Pacific: China, India, Japan, South Korea, Australia, and the Rest of APAC

Middle-East & Africa: Saudi Arabia, Brazil, South Africa, and other countries

Key Company Profiles

This report presents detailed profiles of Key companies in the global energy as a service industry, such as Ameresco Inc., Schneider Electric SE, Enel X, Engie SA, etc.

Generally, each company profile includes an overview of the company, relevant products and services, a financial overview (revenue growth, etc.), and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

Executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.
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