Easing the Burden of Managing Energy with Energy as a Service (EaaS)

Easing the Burden of Managing Energy with Energy as a Service

As mentioned in Part 1 of this blog series, energy management is not a core competency for federal agencies. That’s why they are looking elsewhere for help in managing this function that is so critical to mission delivery.

The U.S. Air Force recognizes the importance of this, and in fact, it has a vision for Energy as a Service (EaaS) that is defined as a partnership with industry suppliers “to buy the capability, not just the commodity” in order to “ensure power when, where, and how it’s needed so airmen can focus on the mission.”

And that is exactly what EaaS can provide.

According to Energy as a Service Market: Global Forecast until 2023, the EaaS market is experiencing rapid growth because this model is delivering highly attractive benefits. This includes everything from reduced operating costs and improved energy efficiency to innovative energy equipment and optimized energy supplies.

For military installations, the expected outcomes of an EaaS strategy can go even further. For instance, one DoD branch anticipates that an EaaS model could help it deliver on-base electric utility systems and the procurement of supply while implementing energy conservation measures. It is exploring how an EaaS business model could provide an integrated, holistic energy assurance plan that eliminates costly silos, leverages expert industry resources, and takes advantage of attractive energy efficiency incentives.

Besides providing a single source of energy assurance to power mission-critical installations with more resilient, cleaner energy, EaaS initiatives can also provide agencies with attractive third-party financing and incentive options. These opportunities can supplement and complement appropriated funds, resulting in considerable cost savings with no capital outlay.

Typical benefits and outcomes of an Energy as a Service strategy

Here is a deeper look at some of the specific benefits – and the associated outcomes – of an EaaS model. The benefits will vary, depending on a military installation’s goals and objectives. However, there are some common ones, like those here, that an installation could expect to achieve.