Energy-as-a-Service (EaaS) is a delivery model that combines hardware, software and services. Solutions should combine demand management and energy efficiency services, facilitate the adoption of renewables and other decentralised supply sources, and also optimise the balance between demand and supply. The chief benefit for the consumer is in the simplification of an increasingly multifaceted service offering.

The physical, digital and communications infrastructure required means that a range of players can participate in the Energy-as-a-Service market.

Four possible scenarios may emerge, depending on who holds the balance of power, and how widely technological advances take root: the Energy-as-a-Service platform provider; the infrastructure provider; the fallen giant; or the stagnant utility company.

Business models will need to transform, in some cases significantly, to keep pace in the ‘new normal’. The same trends that have disrupted retail, transport and consumer electronics are coming to the energy markets.

Companies should identify the opportunities they can exploit, the capabilities they will need to do this, and what market segments have the greatest potential to drive their future growth. They can sequence the shift to Energy-as-a-Service offerings in the following stages: first, digitise core capabilities; next, extend the product and service range; and finally, provide total energy solutions.