A study, reported by Valuates Reports, has projected that the global ‘energy as a service’ (EaaS) market is expected to grow in value from USD 54.4 billion in 2020, to USD 112.7 billion by 2030, at a compound annual growth rate (CAGR) of 7.6 per cent through the decade.
The report covers global opportunity analysis, industry trends and forecasts from 2021 to 2030, and is segmented by type and application.
EaaS allows more companies to profit from the energy transition, while also lowering the potential cost of entry, allowing them to make progress toward their energy and sustainability goals. These features are expected to drive growth in the EaaS market.
Additionally, business applications such as restaurants, educational institutions, data centres, commercial buildings and warehouses have increased their demand for electricity, at the same time as an increase in demand for energy consumption optimisation in order to cut energy costs, and support long-term environmental growth.
The expansion of the EaaS market is also being driven by an increase in building owners’ efforts to minimise energy costs, increases in renewable energy generation, a rise in renewable energy adoption, and an increase in smart grid installations. The report says that EaaS profoundly alters the way businesses approach energy management and purchase, often using a mix of energy aspects, ranging from metering systems to microgrids, distributed energy resources (DERs) and waste heat recovery.
This progression of energy from rigid and centralised to flexible and responsive is reflected in each of these potential components, and, unlike centralised energy management and energy-dispatching technologies, these solutions are adaptive, variable and modular.
Furthermore, the EaaS solution provider provides energy management services that are aligned with performance goals, lowering risk for end-users. These services can be tailored to each client’s needs in order to achieve predetermined goals, such as system resilience and satisfying sustainability target, and frequently result in lower performance risk and lower capital costs.
Utility companies have been obliged to invest in and upgrade policies for DERs due to ageing infrastructure for generating and transferring power. To control and reduce energy use and better manage expenses, DERs include renewable energy, demand-response capabilities and other energy-saving technologies.
Ultimately, the report concludes that a stable and supportive policy framework is required to achieve rapid scale-up and efficiency improvements while maintaining grid stability and energy-saving potential. As a result, during the forecast period, favourable government policies for energy efficiency initiatives are predicted to further fuel the growth of the ‘energy as a service’ market.