Schneider Electric Named #1 Energy-as-a-Service Provider

Schneider

Mar 7, 2019

Global research firm Navigant has named Schneider Electric its #1 energy-as-a-service (EaaS) provider in a recent report for commercial and industrial market segments.

Energy is undergoing considerable transition as generation decentralizes and demand for electrification — fuelled by the global trends of digitization and decarbonization — increases. As a result, the model for how energy is purchased and utilized is changing. Yet, while the benefits of this transition are myriad, cost of entry for commercial and industrial corporations, to date, has been high.

EaaS has emerged as a model to lower this barrier to entry. Like other service-driven market shifts, EaaS is fundamentally changing the way companies think about energy procurement and management. EaaS is a more dynamic solution, incorporating a variety of elements that reflect the broader energy transition away from rigid, centralized systems to ones that are more flexible and responsive, like microgrids. Other fundamental activities within EaaS range from replacing central plants or other equipment to owning and operating metering systems or CHP plants.

Corporate adoption of DERs is on the rise, growing, on average, 11% YoY

In the EaaS model, companies partner with solution providers like Schneider Electric to actively manage the company’s energy portfolio and financing. Typically, the solution provider delivers services that result in guaranteed performance to the corporation and a reduction in liability. These services are custom designed to achieve calculated outcomes, such as energy cost savings or equipment uptime, and can result in reduced performance risk and a decreased capital burden.

The energy service agreement protects cash flow and can often generate new revenue streams. This allows the corporate beneficiary to use innovative structures such as power purchase agreements, leases and energy performance contracts to avoid CAPEX investment, which is then deployed against other energy and sustainability projects.

As defined in the report, EaaS solutions:

    • support companies in achieving energy use reductions and cost savings, enabling them to meet sustainability and operational efficiency goals
    • include traditional energy efficiency solutions and beyond, such as DER solutions (e.g., renewables) and new load management and optimization solutions (e.g., demand response, microgrid)
    • offer innovative options for financing, leading to new business models and greater customer choice

To learn more, access the report.

Related Articles


Latest Articles


Changing Scene

  • Skills Ontario Supports Ontario’s Investments in Skilled Trades in Budget Announcement

    Skills Ontario Supports Ontario’s Investments in Skilled Trades in Budget Announcement

    March 28. 2024 As demand for skilled trades professionals rises, Skills Ontario is commending the government for continued investments in skilled trades and technology programing, working to address the shortfall and need to build the workforce of the future in Ontario.  The skilled trades shortage is costing Ontario approximately $25 billion in foregone GDP. A… Read More…

  • IVRY Launches 7 New VR Lessons

    IVRY Launches 7 New VR Lessons

     IVRY Technologies, a division of IDEAL Electrical, is launching seven new virtual reality (VR) lessons in Canada as part of its Virtual Electrical Training (VET) Series 2 training module. The cutting-edge training will serve as a learning resource for International Brotherhood of Electrical Workers (IBEW) training centers across Canada. Read More…

  • PEI Budget 2024 Signals Continued Focus on Healthcare, Housing and Affordability for all Islanders 

    PEI Budget 2024 Signals Continued Focus on Healthcare, Housing and Affordability for all Islanders 

    March 28, 2024 Hon. Jill Burridge, Minister of Finance, presented government’s 2024-25 operating budget to the legislative assembly, outlining $3.2 billion in investments for Prince Edward Island with a continued focus on healthcare, housing and affordability measures. “This budget signals where we’re headed as a province and shows Islanders where we will be making key… Read More…

  • BC’s Budget 2024 Prioritizes Actions for Low-Carbon Economy

    BC’s Budget 2024 Prioritizes Actions for Low-Carbon Economy

    March 28, 2024 Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, and Brittny Anderson, MLA for Nelson-Creston, met with community climate leaders in Nelson to discuss how Budget 2024 can help support people in the region to transition to a low-carbon economy and meet shared CleanBC goals. “Our government’s budget this year reflects the… Read More…