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.

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The Social Media/Smart Grid Nexus


 

When you think of social media, your initial thoughts come to posting a link on Facebook, trying to connect with a potential employer on LinkedIn, or tweeting about the latest Major League Soccer game on Twitter.

The second aspect of social media networks most people think about is leveraging marketing opportunities to sell products and services online.

What you may not think about social media is its potential to enhance smart grid capabilities to improve efficiency, accuracy, and maximize the customer experience.

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Social Media by Giulia Forsythe via Flickr. Creative Commons Some Rights Reserved

In simple terms, smart grids utilize Internet-based technology to provide two-way communication between devices and the utility, according to the US Department of Energy. Components of the smart grid include smart meters, sensors which transfer data to the service, and web-based energy management systems.

While the current grid system was excellent in providing energy management for the 20th century, which used fossil fuels, today’s energy system in 2016 is a lot more complicated than of prior regimes.

Blackouts in recent history, changes in technological habits, along with increased extreme weather risks due to climate change have strengthened the need to implement smart grids.

Currently, we are seeing smart grid projects seen all over the world, including projects in Austin Texas, and in Germany, to improve energy costs and emissions. Elements of the smart grid are being implemented in wind, and solar farms, and utility power plants in better managing energy systems.

Smart grid global market value is expected to reach $400 billion US by 2020, according to GreenTech Media. The World Economic Forum called for in 2015 a $7.5 US trillion investment within the next 25 years in improving our global grid system to meet our current energy challenges, while mitigating climate change risks.

Early in the 2000’s author Jeremy Rifkin predicted the implementation of a smart grid. His 2002 book The Hydrogen Economy, he argued that end users would use similar smart technologies and principles which helped propel the World Wide Web in the 1990’s to plug and play their fuel cells into localized Hydrogen Energy Web’s (HEW). Rifkin also notes this would help decentralize the energy system, as consumers would be able to share clean energy with each other.

While his initial prediction did not necessarily come to pass about the hydrogen economy, his ideas have flourished about a World Wide Web of Energy through the Smart Grid and the Internet of Things. He added further context in his 2014 book, The Zero Marginal Cost Society. Rifkin discusses the three broad components of the Internet of Things: A communications Internet, an energy Internet, and a logistics Internet.

Based on Rifkin’s analysis, the communications Internet through social media can play a role in easing the energy Internet through smart grid implementation.

Social media analytics can provide massive amounts of data in tracking where extreme weather events affect power outages.

Meanwhile, many companies are using social media to create a universal smart grid experience for customers.

 

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Smart Grid by IBM Research via Flickr. Creative Commons Some Rights Reserved

 

Oracale’s Opower, creates social energy software for utilities to enhance a client’s smart grid experience. Opower’s software runs on both computer and mobile apps (tablets and smartphones, which allows a customer to get real-time data on how much energy consume while providing suggestions on how they can cut their use. Utilities who have used Opower’s public service customers have created 11 terra-watt hours in energy savings (TWh), with 3TWh, coming in the past year alone.

Meanwhile, expect further social networking and smart grid integration into the future as dynamics shift from baby boomers towards millennials. A recent study suggested millennials are demanding a mix of more smart technologies, renewables, and social media be implemented by utilities, as they become the biggest consumer demographic.

I would expect the next few years to provide some disruptive, exciting development for utilities, as they look to make Generation Y happy, lower their carbon footprint, and create a plug and play consumer energy experience.

Social media is much more than snapping a photo on Instagram, or uploading a video on YouTube. Mashable said it best in 2011:

As the smart grid continues to reach more American homes, it truly will form a nationwide social network unlike anything ever was seen.

SnapGrid Perhaps?

What do you think of social networking merging with smart grid technologies? Is this a good thing? How can clean tech, renewable energy analysts and social media marketers collaborate here? What challenges do they face?

Let me know. Drop me a line on Facebook, Twitter, LinkedIn, or Google+. You can also email me at adamjwpg@mymts.net.

 

 

 

 

 

 

An Inconvenient Truth: Ten Years On


Ten years ago, Italy won the 2006 FIFA World Cup, sending Italians into a frenzy. Yet, perhaps just as significant was the release of An Inconvenient Truth.

This documentary featured former US Vice-President Al Gore discussing on a slide show, about the consequences climate change would have on our planet in the future. It was a visual tour de force for the eyes, as Gore hit the point home, slide, after slide, after slide, about what will occur if we do not make necessary changes in order to avoid future damage. An inconvenient Truth won the 2006 Best Documentary Feature Oscar. It also became one of top grossing documentaries of all time, taking in $49.1 million, globally.

So what has happened since An Inconvenient Truth has come out?

A lot of things have happened. I won’t go into every crook and cranny on what’s happened since, but I will discuss some key points.

Weather events are getting more extreme: Ok, as much as I love watching a good extreme wrestling bout, the same can’t be said about extreme weather. There is nothing funny, nor pretty about flash flooding, droughts, and intense heat waves.  In, fact it’s quite scary. Consider since 2006, six years have been the hottest globally on record, (2007, 2009, 2010, 2013, 2014, and 2015). There is a 99% chance 2016 will be even warmer (and it’s not even June yet). Climate analysts suggest these types of events will only increase in warming world, as we head into a “New Normal” of expecting the unexpected in weather. If that won’t get you, perhaps increased insurance rates in the pocket-book will from these situations.

Increased investments in renewables and cleantech investment: While doom and gloom abounds about climate change, one positive has occurred, which is more investments into renewable energy and clean technology. Renewable energy and clean technology has seen revival, thanks to reducing carbon emissions, but also thanks to the American Recovery and Reinvestment Act of 2009, which poured $31 billion US into new American clean energy projects. Since then, global renewable energy investment reached a record in 2015 with $329 billion US, with emerging market countries leading the way. Electric vehicles are also finding their way, as they are becoming more affordable, as Tesla Motors has taken already 373,000 pre orders for its affordable ($35,000 per car) model 3 vehicle, and is considered a “game changing” event within the automobile industry due to the amount of rapid sales for an electric vehicle.

Ten years on. An Inconvenient Truth, if anything got more people talking about climate change and began a serious conversation in mainstream society. It’s been used in universities, and schools about what needs to occur about taking climate action. Sure it has its detractors.  Yet at the end of the day, it’s a discussion that needed to be out in the open. Look, I love talking about money (I prepare income taxes, and took economics), but we can’t continue to beat up our planet Earth day in and day out in the sake of maximizing return. There is no economy with no planet. Today we have to technology to move forward, with wind, solar, biofuels, battery storage, and electric vehicles.  The Internet of Things will help to ramp up renewable energy through smart grids, as smart cities will help to ensure improved energy efficiencies in major urban centres.

We owe it to ourselves. If not to save our Earth, but in the very least to upgrade our outdated 20th century infrastructure into the 21st century, and save ourselves future costs from extreme weather events.

So watch An Inconvenient Truth again. Discuss what has changed since. Debate with your friends and neighbors. Be inspired by it. But in the very least come out of it with something new, and take action. Because there is No Planet B.

 

Earth Day: Futurism is the Driving Force for Environmentalism  


On this Earth Day, Futurism has to be the driving force for environmentalism. Yes, call me crazy, but without having futuristic thinking, environmentalism in its goals falls short.

After all, vision is what is required to set a plan forward. Having a vision ensures a plan. Having a plan in place can help get the tactics right required for success, and minimizing any failure. Getting the right tactics is important to ensuring success. This is what sports analysts talk about how teams are successful or an abysmal failure. Those who have the right plan and tactics are successful. Those who don’t, fail.

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Red Tesla Model 3 via WikiCommons By  Steve Jurvetson, Some Rights Reserved

Now put those same principles with climate change and environmental issues. While it’s important to focus on the problems which climate change will cause, including extreme weather events, and increased costs, the importance of environmentalists shifting, and gazing towards what the future can be, rather than what it may be, is where the train must go, while giving us a sense of hope, and excitement.

Futurism gives us an idea what to build. What sustainable energy we will use. What are cars can drive on. In fact, we are already starting to see those glimpses of futuristic ideas starting to take shape.

Consider, the increasing use of renewable energy capacity, and cleantech globally. US solar installations will reach records in 2016. Electric Vehicles are starting to gain traction within the automotive markets. Tesla has sold nearly 400,000 Model 3’s since starting to take orders in late March. Bloomberg New Energy Finance predicts 35% of all new cars sold by 2040 as electric. Smart grid market value is expected to reach $400 billion US globally by 2020, according to a 2013 GreenTech Media report, while microgrids and battery storage is beginning to take off.

Smart phone use increasing exponentially, and yes, the rise of the Internet were earlier signs futurists had the vision to see the potential of what society could look like

Sustainability expert Alex Steffen, in recent years has put more emphasis on futurism, in order to move sustainable development forward and provided this tidbit of wisdom, almost a month and a half ago on futurism:

Once futuristic concepts like smart cities, the Internet of Things (which are now becoming hot talking points) are making it easier to envision sustainable development within our times.

On this Earth Day, we need to think about the future we can create with the tools and skills we have now. Futurism gives environmentalists the vision need to realize what maybe impossible, possible in our uncertain times.

Adam Johnston is a Climate Reality leader and has written for MicroGridMedia.com, CleanTechnica.com, and SolarLove.org. 

Corporations Leading the Way on Climate Change (Seriously)


Monday’s news from the United States regarding 13 major companies announcing they will invest $140 billion in renewable energy, to reduce carbon emissions, is proving big business is serious about climate change.

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Wind Energy By Jim Allen Via Flickr Some Rights Reserved

Some of the most well-known brands, including Apple, Microsoft, Google, WalMart, and Coca-Cola said in a statement from the White House they plan to add more than 1,600 MW of additional renewable energy. These 13 companies have promised their support for a climate deal ahead of the United Nations climate summit in Paris late fall.

Meanwhile, last week, Amazon added their voice in advancing the renewable energy agenda, when it advocated for renewable tax credits in US congress. Thank the world’s largest e-commerce store for purchasing a North Carolina wind farm, in championing both the Investment and Production Tax Credits.

Here are some driving factors why this is a trend that’s likely here to stay.

1. Consumers are voting with their dollars, not necessarily at the ballot box: Ok, I get this where politics is important and elections drive climate policy (including the upcoming Canadian Federal election this fall). However, consumers voting with their dollars has become a new way of doing politics outside the government realm. Ethical funds, consumer boycotts are some ways customers can voice their displeasure with how companies are doing business. Businesses, have a faster response time with consumers, rather than governments with their constituents on many problems. Case in point, Newsweek, recently highlighted Corporate America’s critical role in supporting same- sex marriage and other social issues:

Fortune 500 corporations are trying to appeal to (or at least avoid offending) the widest possible swath of Americans. “Inclusiveness” may not be good politics in this day of polarization and micro-targeting, but it seems to be good business. And that is making the business community the sort of “big tent” political force that neither major political party can claim to be.

While don’t expect the CEO of Suncor to be buddies with New Democratic Party leader Tom Mulclair any time soon, big business will have a bigger ear towards consumers going forward, or they will lose customers business.

2. The Carbon Investment Bubble is About to Burst:  Bill McKibben’s groundbreaking 2012 Rolling Stone article about how Earth could only burn 565 gigatons more carbon into the atmosphere by 2050 before this planet can keep within the 2C limit, was the catalyst of divesting from fossil fuel investments. Now, fossil fuels becoming a more riskier investment. as Bank of England Governor Mark Carney noted these investments will become financially abandoned.

3. IT and Internet companies Are The Backbone for Renewable Energy: From Apple, who runs all their US operations on 100% renewables, to Google, who has bought 1.1 GW of clean energy, information technology and internet-based companies have been leaders in supporting renewables. Tom Friedman’s 2008 book Hot, Flat, and Crowded exemplified how information technology was going to be critical in moving green technology forward.

We are starting to see this marriage become a reality, with these companies investing heavily in The Internet of Things, and smart grid technology. Smart grid markets are estimated by 2020 to reach past $400 billion globally. Hence, there is real incentives for the likes of Google, Apple, Cisco, in reaping the rewards of strong climate change policy.

It’s not perfect. Sure, but corporations are becoming leaders on this issue. And it may very well be driving many Naomi Klein and Milton Friedman fans bonkers.

Wind Energy Slowly Powering Automotive Plants Globally


Wind Energy, on one hand, blows freely. It’s becoming cost competitive with fossil fuels across North America.

On the other hand, the automotive industry has been slow to change, until recently as electric vehicles, driverless cars, and car-sharing are changing the landscape.

Now what happens, when both collide?

Check out this April, 2015 The Weather Channel report, showing how the Russells Point, Ohio Honda plant is powered by wind energy.

Southern Minnesota company Juhl Energy provides three turbines, which powers 60MW or 10% of the plant’s electricity.

While wind energy providing electricity to automotive plants is a new game in North America, In Europe it’s more common to see this.

Ford plants in both Belgium and the United Kingdom have wind as an electricity source. BMW added four wind turbines to its Leipzig, Germany plant, in supplying 25% of its power over two years ago.

Meanwhile, expect the trend to grow in North America. General Motors announced this past February it’s adding 34MW of wind power to its Mexican plants in order to reach its renewable energy goals four years earlier.

GM Wind Energy

Image Credit: Wind Power Propels GM Past Renewable Energy Goal via General Motors

With US total installed wind capacity at 66GW, and 9.694GW in Canada, the question of who is the next US (or Canadian) automotive plant to feel the breeze? Perhaps a Ontario Canada plant? But even better, why not one in Michigan? This was the backbone of automobiles. Ford, GM, are you listening?

SolarCity Tops 6GWh, Doubled Electricity Generation Since April 2014


SolarCity keeps on rolling and breaks its own milestones at rapid rates.

According to a post on LinkedInthe top US solar panel installer on June 2nd reached 6GWh of solar electricity in a single day, doubling its generation rate in one day of 3GWh in April, 2014. SolarCity said on their LinkedIn page they “Can not wait to see what summer brings,” referring to reaching 7GWh soon.

It was only in late March they reached 5GWh, easily smashing 4GWh, two weeks prior.

I had predicted in the same CleanTechnica post 6GWh in solar electricity generation in a day was feasible by early summer for SolarCity, which they easily accomplished as noted by the below graph.

SolarCIty 6GWh Graph

Image: SolarCIty 6GWh via SolarCIty LinkedIn page

Even more astonishing is how fast this was achieved in five years to reach 6 GWh of solar electricity production. Consider, by 2013, only 1 GWh was produced in a day. Within two years it’s now six times that!.

Declining solar costs, driving climate change concerns will factor into SolarCity’s ferocious appetite to push clean electricity further.

All that solar power will come in handy as US energy demand could increase up to 95 gigawatts within the next 5-25 years, in order to meet cooling needs from increased heat waves.

With “The dog days of summer” on its way, and peak consumption period from the hot weather, I would not be surprised if SolarCity reaches 7GWh in a day by early July.

Until then, I am excited by the possibilities Lyndon Rive, SolarCity’s CEO & Co. have in store.