Energy-as-a-Service: Paving the way for Round-the-Clock Renewable Energy to fuel Corporate India
Fourth Partner Energy’s EaaS (Energy-as-a-Service) Offering:
The world we live in is dynamic – what works today, becomes redundant tomorrow. One key example here is energy demand and consumption – the way households and businesses procure and utilize electricity is today dramatically different from a couple of decades ago. Tomorrow, all of this demand needs to be fueled by clean sources to combat the ongoing climate crisis. Transformation of energy consumption and distribution is already underway. Decentralization and distributed energy is the norm, buoyed by behind-the-meter and battery storage.
At Fourth Partner, this as our business opportunity – we provide accessible, affordable clean energy to our corporate clients by offering Energy-as-a-Service. 4PEL’s business model is centered around transforming the C&I marketplace through the deployment of low-Carbon technologies; We do this through our suite of integrated Renewable Energy solutions
that can help offset nearly 100% of the client’s electricity demand. Our EaaS process is end-to-end, taking care of the corporate’s electricity consumption analysis, design, installation and financing of energy assets as well as managing the same over the lifetime of the project.
What is Energy-as-a-Service? (EaaS)
Energy-as-a-Service is used to describe end-to-end management of a customer’s electricity assets and services. It focuses on more that just supply of power to a client – by supporting the deployment, operations and maintenance of distributed energy resources while offering flexibility based on demand-side management. EaaS optimizes the use of innovative technology to deliver integrated solutions that result in the off-taker not having to worry about owning or managing the asset directly. It also addresses concerns around capital deployment, upgradation of assets, emissions control and other policy/regulatory barriers.
Benefits of EaaS:
EaaS enables the developer to retain the asset, while charging the client for the service of providing low-cost electricity. The client signs a Power Purchase Agreement to procure power at a prescribed tariff, for a period of 20-25 years. Since revenue directly depends upon the electricity generated, it is in the energy developer’s interests to design, install and maintain the best possible system: while offering the client low-cost, clean energy – thereby ensuring a win-win for both parties.
- Ideal for Commercial & Industrial users looking to accelerate Net-Zero goals
- Guaranteed cost-savings on Electricity
- Integrated solutions through EaaS helps address intermittency, greater demand for flexibility and along with storage can help balance grid operations
- Better scope for increasing energy efficiency using technology
- Paves the way for futuristic greener Smart cities
Many countries like China, US, UK, Australia, Sweden and Japan have embraced EaaS models offered by renewable energy developers. India is taking strides in this direction and the market opportunity for the same remains huge with the 500 GW renewables target set by the government for 2030.
According to Fortune Business insights, the global EaaS market is projected to reach $124.10 Bn by 2028, from $64.2 Bn in 2021, at a CAGR of 9.9% – with growing investment into renewables driving the EaaS market growth.
Across Southeast Asia, 4PEL is replicating this business model to accelerate Decarbonization in the corporate sector.