Energy As A Service Market to Reach $221.1 US Billion by 2026: Report


An original post from Salay Consulting & Social Media Services

Although a relatively new business model, commercial & industrial (CI) Energy as a Service (EaaS) is expected to dramatically grow within the next decade, based on a new report.

According to cleantech research firm Navigant Research, the CI EaaS market by 2026 will reach $221.1 US billion.

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Image Credit via Pixabay by bykst. Under Public Domain via Creative Commons

Changes in the delivery of energy are the driving factor behind the rise of EaaS companies. In the old days, consumers would (and still do on many levels) get their energy from a central source (your local utility), be charged and billed a monthly rate. Some months your energy bill would be higher (winter and summer months especially) than others.

However, today we are seeing a shift being played out on the energy market stage. Navigant Research notes energy companies and sustainability managers are taking advantage of new business models and digitized technologies, which are helping to decentralize the energy markets.

“Navigant Research anticipates that these evolving grid and customer factors will converge to give rise to demand for vendor-based business model disruptors that can provide turnkey energy as a service solutions (EaaS),” said Navigant’s website.

Eaas has lots of potential in making the customer energy experience as un-limitless as possible. EaaS providers can manage many aspects of a consumer’s energy needs. Examples include energy supply, energy use, asset & program management, and strategy, according to Navigant.

EaaS companies can use innovative services, financial solutions & technological tools to ensure clients are happy with their energy system.

Players within the EaaS ecosystem include standard utilities, third-party vendors, and start-up companies, who are providing disruptive solutions within the technical, financing and procurement within the energy market, according to Navigant Research.

As EaaS establish themselves; energy portfolios will be outsourced to fully equipped companies “with a comprehensive set of technical financing and deployment options.” According to Navigant.

This report is in line with an overall shift in societal attitudes on energy. Concerns over a warming planet due to climate change, falling renewable energy costs, and Millennials wanting more choice in energy options will only help to fuel EaaS platforms heading into the third decade of the new millennium. Add other underlying factors including sharp price drop on lithium-ion batteries needed to make battery storage units, plus 34 billion connected devices within the Internet of Things eco system by 2020 will ensure EaaS companies are going to have very profitable opportunities soon.

As Warren Buffet said, “energy deregulation will be the largest transfer of wealth in history.” EaaS will play a part in this. Shortly, consumers may have options besides a local energy utility thanks to possible EaaS platforms.

What do you think of EaaS? Will they become a serious option for consumers within the energy market over the next decade? What has to happen for EaaS to grow not only in the US but Canada/Manitoba? Feel free to email at adamjwpg@mymts.net, or follow on Twitter at @adamjohnstonwpg.

Electric Vehicles Are Reaching Their “iPhone” Moment in 2017


Originally from Salay Consulting & Social Media Services

When the history books come to pass on 2017, one will look on this year as to where electric vehicles (EV’s) had its “iPhone moment.”

A decade ago, Apple released its revolutionary product. Although smartphones were around before, the iPhone helped change a lot of things. It helped changed how smartphones, and eventually the public warmed to mobile computing. It helped create new spillover industries while flipping old ones upside down.

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Image Credit via Pixabay. Under Public Domain via Creative Commons.

Three factors are contributing this year to why EV’s are reaching that watershed or “iPhone” moment.

EV’s are becoming More Affordable as Battery Prices Plummet: The first shipments of Tesla’s Model 3 have now begun to hit the streets. Initially showcased last year, Elon Musk’s company took 373,000 in reservations as of March 2017. What is so special about this car? It’s Tesla’s first EV into the affordable mass consumer market at $35,000 USD a piece. One of the criticisms with EV’s was the initial excessive costs for consumers.

However, declining lithium-ion battery prices are now making it more affordable to mass produce EV’s, along with Tesla’s Gigafactory 1 in Nevada.

With batteries coming less costly, EV’s are nearing a tipping point where they are near cost competitive with combustible engine vehicles. A recent report underlines this. By 2025, all new vehicles will be electric. It’s especially important to know given the Paris climate agreement requires all participants keep CO2 levels well below 2C while aiming for 1.5C above pre-industrial levels.  Transportation alone creates 23% of all carbon emissions, according to the World Bank. Thus, creating affordable, clean tech transportation options at the mass consumer level is essential in cutting carbon emissions out from transportation.

While other companies, including Nissan, Chevy already produce EV’s. Tesla has had critical acclaim with its prior other models, including the Model S. Just like how the iPhone 10 years ago was synonymous with smartphones.

Companies are Going All In on EV’s: 2017 is also the breaking point where companies are making plans to slam the brakes on fossil fuel based vehicles.

Volvo recently announced by 2019 they will cease to make combustion engine vehicles, and manufacture only EV’s or hybrids. This is the silver bullet car manufacturers need to go all-electric. In 2007, Apple entering the smartphone market with the iPhone helped lure other companies, including Samsung, LG, Sony, Nokia, and Chinese tech companies to get into the smartphone game, providing more consumer choice. Smartphone costs also came crashing down to insanely low levels. It’s now possible to get a smartphone for $32 (compared to $499 or $599 US in 2007 for an iPhone). While it’s highly unlikely anyone will see an EV for $32 in their lifetime, it’s entirely possible as more entrants flood the market, prices will drop to make EV’s even more affordable for Main Street.

 

Global Policy: You can also thank public policy makers around the world around the globe for helping contribute to EV’s watershed moment happening now.

While Trump dumped the Paris accord, other countries are strengthening their ties by supporting cleantech. France recently announced earlier this week by 2040. They will be eliminating the sale of all petrol fuelled based vehicles. Last year, Germany vowed to do the same by 2030. Policy makers are helping to shift towards cleaner vehicles, which adds another layer towards EV’s becoming a real force.

Thomas Friedman’s 2016 book Thank You For Being Late discussed how in 2007 was the watershed moment for many key technologies, ranging from cloud computing storage, solar energy, and smartphones.  Ten years later, thanks to declining lithium-ion battery prices, companies moving towards just electric cars, and supporting legislation, are helping EV’s have their “iPhone moment.”

So what you think? Has electric vehicles reached their watershed moment this year? You can reach me on Twitter at @adamjohnstonwpg, or by email at adamjwpg@mymts.net.