Energy-as-a-Service: A Subscription Trap for Heavy Infrastructure

Core Insights - The Energy as a Service (EaaS) market is projected to grow significantly, from $28.79 billion in 2024 to over $55 billion by 2030, indicating a strong shift towards subscription models in the physical steel and copper sectors [1] Market Dynamics - The EaaS model presents a complex reality beyond mere energy efficiency, involving a significant transfer of infrastructure control [2] - Rising electricity prices, which increased by 6.3% in the U.S. last year, alongside stringent building performance standards, are driving the adoption of EaaS [3] Provider Role and Risks - EaaS providers, such as Ameresco and Siemens, alleviate financial burdens by converting hardware investments into operating expenses, thus allowing institutions to manage their carbon footprint and energy costs more effectively [4] - The operational and maintenance (O&M) services segment is crucial, as providers assume the performance risk associated with energy systems, making it the second-largest market segment [5] Investment Needs - To meet global climate targets, investments in building efficiency must triple to $1.9 trillion by 2030, with EaaS positioned as a key mechanism to facilitate this investment [7]