The wind farm off the coast of RhodeIsland. (Photo: Eric Thayer/Bloomberg)

You may have heard thatenergy-as-a-service (EaaS) is expected to be a major disruptor inthe energy industry in 2020 and beyond. But what exactly is EaaS,and how can your energy clients benefit from this emergingbusiness model?

What is EaaS?

EaaS is a business model thatinvolves companies partnering with outside experts for the purposeof regaining control over energy spending. Simply put, energyexperts (also known as energy resource consultants) partner withcompanies, analyze their energy profile, and identify the bestopportunities for controlling and optimizing energy efficiency.This includes assisting with energy supply and management bestpractices to determine more efficient and productive use ofenergy. 

Is EaaS right for your clients?

For most companies, access toin-house energy experts can be scarce. This, coupled with the factthat increases in energy costs make up a large portion of operatingbudgets, have businesses looking for ways to manage this costlyexpense. To help companies better reach their sustainability goals and cut costs, an EaaSpartner evaluates energy use, recommends ways for the business tosave energy and make existing operations more energy-efficient, andeven may suggest alternative energy sources. 

For example, an EaaScompany can monitor a building's power-usage patterns in equipmentsuch as compressors, HVAC units and specialized machinery. Theprocess can identify how much energy each type of equipment uses,when it uses it and whether the use is excessive. It can alsoevaluate machinery and equipment to determine whether they areoperating efficiently and should be replaced. 

Even more attractive is that, ingeneral, most EaaS business models work on a subscription basis,allowing customers to immediately initialize the service and enjoythe benefits without having to make an upfront capitalinvestment. 

Loren Henry is a brokerwith Worldwide Facilities in San Diego. He can bereached at 619-541-4265 or [email protected].

This piece first appeared on Worldwide Facilities' blog andis republished here with consent. 

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