Energy-As-A-Service Propositions Gain New Momentum As Macquarie And Siemens Launch Calibrant Energy
In October 2020, Siemens’ Smart Infrastructure announced a joint venture (JV) with Macquarie’s Green Investment Group to offer energy-as-a-service propositions. The new JV “Calibrant Energy” will target corporate and industrial firms, as well as municipalities, universities, schools, and hospitals. Its technologies portfolio will span solar, battery storage, microgrids, and CHP systems. Like other energy-as-a-service propositions, Calibrant Energy will build, own and operate the energy equipment, with clients paying a services fee.
The launch of Calibrant Energy signals the rise of a new generation of energy-as-a-service propositions. Historically, the model was primarily used to fund substantial energy assets such as CHPs or energy centres, where investors can count on reliable and sizeable returns. Today energy services firms are applying the concept to broader range of low carbon technologies. Witness Schneider Electric partnering with Huck Capital, to offer solar, batteries and microgrids through an energy-as-a-service model. In October 2020, Redaptiv raised $157 million in funding to propel its efficiency-as-a-service offering, spanning LED, HVAC and solar.
The evolution of energy-as-a-service propositions also reflects the emerging demand for on-site generation as firms look to reach decarbonization goals. For example, the Commonwealth Bank of Australia has committed to own or occupy buildings that have net zero operating emissions by 2030. Private equity real estate fund manager Moorfield Group has also announced a target to achieve operational net zero carbon across all sites by 2030. But not all decarbonization goals will result in the deployment of on-site generation technology. Goldman Sachs has been maintaining net zero carbon emissions across global operations from 2015 using a 100% renewable electricity supply.
To learn more about the changing opportunities in energy management, read our report: Best Practices For Energy Management In An Era Of Smart Buildings.