renewable energy
Could energy-as-a-service be the answer to reduce emissions?
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N
ow more than ever, businesses
long-term value, as opposed to traditional
energy creates no emissions compared to
are making the commitment to
grid-supplied electricity.
fossil fuel-driven grid electricity. This has
reduce their emissions and
The service itself includes the deployment
led to an increased demand from large
meet sustainability targets to
of a range of renewable energy generation
companies looking to reach their net zero
achieve net zero. Reports by
assets such as: solar PV, microgrids, energy
targets. Access to more sustainable energy
the United Nations IPCC show that the world
storage or sustainable transport infrastruc-
sources is driving growth in the electrifica-
is not on track to limit global warming to 1.5°C,
ture. The EaaS agreement then shifts the
tion of energy systems.
and the pressure is mounting on organisations
responsibility of development, delivery,
Seeking energy savings without spending
to electrify their energy systems fast. Verdia
financing, ownership and operation from
capital: The cost of grid energy is increasingly
explains how energy-as-a-service (EaaS)
an organisation to an asset owner such as
volatile. Onsite renewables are in many cases
could be the answer companies are looking
Verdia, through a long-term agreement. For
the cheapest form of electricity available to a
for to reduce their emissions in the long term
clients who do not wish to invest CapEx
business. The benefit of EaaS is that it can
and on a large scale, without having to incur
upfront or take on long-term operational
deliver energy savings and reduce costs by
upfront capital expenditure.
risks, EaaS can be a game changer.
stabilising energy prices at a fixed, predict-
Renewable energy-as-a-service and power purchase agreements
What are the benefits?
Under the EaaS model, companies can achieve
EaaS agreements offer the benefits of renew-
these benefits without spending/allocating
EaaS shifts the perspective of renewable
able energy without requiring companies to
capital to non-core business assets.
energy and storage at a customer’s site from
invest in a new system themselves. Choosing
Increasing operations resilience in the digi-
an upfront capital investment to instead a
EaaS can mean:
able price, independent of market fluctuations.
fully managed and ‘pay-as-you-go’ offering, including end-to-end management of onsite energy assets and services. Also referred to as a power purchase
• lower grid energy consumption and reduce energy cost • transferring operational and performance risks
tal age: Digitalisation has become a crucial aspect of business. It has led to a fourth industrial revolution, based on machine-tomachine interconnection, with the objective of optimising systems rather than single
agreement (PPA), an EaaS agreement provides
• transferring ongoing maintenance costs
points. EaaS is a prime example of energy
a corporation access to renewable onsite
• ensuring long-term price certainty for
turned digital. EaaS can help upgrade critical
electricity without upfront capital expendi-
a portion of site electricity (ie, energy
infrastructure to enhance competitiveness,
ture. An energy services provider, such as
price hedge)
and optimise assets through energy storage,
Verdia, develops, delivers, owns, operates
• enjoying future flexibility for storage and
and maintains a range of these distributed
other distributed assets to be incorporated
energy assets for clients at their sites and
at no capital cost.
EV chargers and any other flexible assets. Verdia’s EaaS solutions are designed to help users achieve their sustainability targets, reduce emissions and provide long-
makes the upfront capital investment. EaaS aims to satisfy client needs by
Why are companies choosing EaaS?
term cost savings.
identifying the solutions that better suit their
Achieving net zero: The economy is rapidly
Verdia
specific energy requirements and generate
becoming decarbonised. Onsite renewable
verdia.com.au
26 Sustainability Matters - Jun/Jul 2022
www.SustainabilityMatters.net.au