Drivers for Energy-as-a-service (EaaS) business model – Property sector perspective

In a time of technological upheaval and energy decentralisation, Australian property sector is becoming more concerned about building energy needs and strategic about how to source energy services. Consequently, this has enabled energy service providers to offer innovative energy services and develop new business models. Energy-as-a-service (EaaS) as an emerging business model has shown potential under this complex energy transition. However, with limited studies into this business model, there is a research gap in determining what really drives such a business model. In addressing such a research gap, this paper investigates about drivers for EaaS from an industry perspective. More specifically considering property sector the paper focus to identify perspectives of customers of property sector and energy service providers representing EaaS. A generic qualitative research design within a constructivist paradigm was adopted in this exploratory study with twenty-nine semi-structured interviews. Thematic analysis resulted findings to be classified under four driver categories of: Financial, Organisational, Functional and Market. Empirical analysis revealed that financial drivers can both be connected to reduced energy expenses in buildings as well as increased revenues while similarities to performance risk transfer was highlighted beyond traditional energy contracting models. Sustainability concerns was emphasised as an organisational driver however with consequential challenges to service providers from much active and involved prosumer clients. This deviation was seen in market drivers as well where interviewees agreeing on the influence of digitalisation, decentralisation and decarbonisation for EaaS, however has resulted property sector customer to become a service provider of EaaS to building inhabitants. Although findings were in the context of property sector similar drivers was also seen for energy system transition, meaning EaaS applicability to energy system levels well.