As the world prepares for one of the most pivotal winters in modern history, the Energy-as-a-Service (EaaS) sector has never been in a more prime position for growth. According to a recent report by ResearchAndMarkets.com, the EaaS market is expected to reach $93.31 billion by 2026 –a more than 50% increase since 2021. Here are some of the key drivers behind this impressive growth:
Russia’s Impact on Distributed Energy
Over a few short, tense months, the world was thrust into one of the most significant energy crises in modern-day history. With governments and consumers around the globe still reeling from financial pains caused by the COVID-19 pandemic, exacerbated by rising inflation and supply chain challenges, Russia’s invasion of Ukraine provided a tipping point that led many people to reevaluate where their energy originates. As a result, the EaaS market saw a dramatic increase in distributed energy resources (DER), which refers to small generation units located on the consumer’s side of the meter. Common examples of distributed energy sources include solar PV units, microgrids, and battery storage.
DERs offer a range of customizable energy solutions. They can be deployed in areas that rely heavily on variable energy sources to ensure a constant power supply. Through a highly personalized and flexible approach, Calibrant offers a variety of EaaS models that supports the development, distribution, and operation of DERs.
Reducing the Burden on Energy Grids
The world was first introduced to microgrids when Hurricane Sandy ripped through the East Coast and wiped millions of homes offline. Beyond the vital power, safety, and security that microgrids can provide to individuals and families, they also help relieve municipal power grids and promote a greener future.
The ideal microgrid can seamlessly transition between on- and off-grid, helping buildings manage blackouts while optimizing energy costs. A microgrid allows the digitization of electrical infrastructure, giving buildings more predictable energy expenditures and automatically prioritizing the lowest-cost fuel source, saving energy costs. At Calibrant, we utilize our EaaS model to help minimize the burden on microgrid hosts. In addition to helping to reduce carbon emissions, this saves our clients’ money that can ultimately be used to support future business growth.
Legislation Paves a Path Forward
Implementation of the Inflation Reduction Act is also delivering a critical tailwind for the EaaS space. Thanks to the incentives and tax credits provided for electric vehicles, renewable energy, carbon capture and storage, and more, there has been a notable shift in companies’ desire to work towards a greener future. Outside of the $360 billion that the bill earmarks for climate change and green energy investment over the next ten years, it provides the energy industry with a goal that everyone can get behind – a commitment to a sustainable future and a net-zero economy by 2050.
After taking these critical factors into consideration, what are you most excited about in the world of energy for 2023?