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Below, we will break down what EaaS is, who coined the term, and how it benefits us in the long run.
Energy-as-a-Service: Definition
When searching for "What is EaaS?", many consumers get confused about its definition. Indeed, the system is new and is just emerging among electricity providers. It can help boost the renewable energy transition, generate revenue, and enhance resilience amid blackouts. By leveraging EaaS, individuals and facilities can benefit from these advantages without paying the upfront cost of the system. So, you rent the services or technology for a set period.
Energy as a service model usually comes with battery storage, a management system, and a contract. It also often incorporates microgrids. Here’s a quick microgrid definition: it’s a small power grid that can operate independently or connect to the main grid.
Development of the Term
The energy as a service market is still fresh, but Scott Foster, Energy Director of the United Nations Economic Commission for Europe, has been one of the biggest motivators of its global adoption. He states that a monthly subscription for power is better than the per-kilowatt system we have today. He also coined the "iEnergy" term.
Foster believes that the supplier should take care of the services and improve their reliability. This is supported by several other trends, including:
- decarbonisation;
- electrification;
- urbanisation;
- digitalisation.
Energy as a service business model promotes the adoption of new resources, such as waste to energy technologies and renewables. In 2016, the term ESaaS was developed and trademarked by Constant Power Inc., a Toronto-based company.
DTEK's Initiatives in Energy-as-a-Service
DTEK is following actionable trends in the power market. Once it shifted towards more client-oriented services, it launched D.Solutions, that works under YASNO brand. The subsidiary is one of the energy as service companies that provides electricity with relevant services and tools to households and businesses.