June 3, 2020

How The Energy As A Service (EaaS) Business Model Works

Energy as a service (EaaS) is a model developed for commercial, hospital and higher education customers to undertake energy projects with no capital expenditure. The provider designs the project scope, finances the material and construction costs, maintains project equipment and monitors the performance to validate energy savings. The customer pays back the project costs through a monthly, a quarterly, or an annual fee for the service received.

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The Energy as a Service Market is still in its early stages. Rising energy consumption, unstable price, and integration of renewable energy, deeper operational and maintenance savings, flexible enterprise scale are some of the key drivers of Energy as a Service Market. However, challenges related to execution is creating small hurdles for the Energy as a Service Market. Forward and backward integration, first-cost savings, lower operational risks are approaching new opportunities for Energy as a Service Market.

Key Players: Bernhard Energy solutions, Contemporary Energy Solutions ,Edison Energy, Enel X Italia S.p.A, ENGIE, General Electric, Orsted, SmartWatt, Solarus, WGL Holdings Inc