Energy, defined as the capacity to do work, functions as the fundamental force that drives the universe. It exists in various forms, each with its unique characteristics and applications. From the heat of the sun to the flow of electricity, energy is the lifeblood of our modern world.
Throughout history, humankind has sought and harnessed energy to improve living standards and accelerate advancement. From the simple tools used in ancient civilizations to the complex technologies of today, energy has been a cornerstone of human development.
As our civilization has advanced, our reliance on energy has grown exponentially. From powering our homes and industries to enabling transportation and communication, energy is an essential component of our daily lives.
In recent years, a new concept has emerged: Energy as a Service (EaaS). This paradigm shift envisions energy not simply as a commodity but as a service that can be tailored to meet the specific needs of consumers. By providing energy solutions that are efficient, reliable, and sustainable, EaaS aims to revolutionize the way we consume and interact with energy.
The shift from the traditional energy model (Energy as a Commodity) in meeting the customer’s needs is primarily driven by its shortcomings such as
- Energy management complexity and upfront costs,
- Inefficient usage and wastage of resources thereafter,
- Environment concerns, &
- Slow adoption of new energy-efficient technologies due to customers’ hesitance
What does Energy as a Service mean?
According to Michael Liebreich, the founder and Chairman of Bloomberg New Energy Finance, "EaaS is a model where energy suppliers take ownership of energy-related assets, such as solar panels or energy storage systems, and provide customers with energy services as a subscription-based model."
An example of a small business will make the idea more comprehensive. A bakery looking to reduce energy costs partners with an EaaS provider. The provider installs new, energy-efficient equipment, manages it, and charges a fixed monthly fee which assists the bakery to benefit from lower energy bills, improved efficiency, and reduced maintenance. The EaaS also guarantees efficient functionality and maintenance of the equipment to facilitate sustainable resource utilization and minimize ecological footprint/harmful ecological impact.
EaaS Adoption in India and Germany: A Comparison
While both India and Germany have embraced Energy as a Service (EaaS) models, their market maturity and specific drivers vary. Though both nations have implemented supportive policies, the more established energy market and higher penetration of renewable energy sources have enabled Germany to achieve greater success in this regard. India, however, is rapidly investing in infrastructure and has immense potential for EaaS growth, especially as its renewable energy sector expands.
The Indo-German contribution to EaaS
As the discussion proceeds in the coming sections, we’ll see that there is a major uprising in the number of collaborations happening between the two countries regarding the use of Energy that benefits not just humans, but is easy on nature. Both countries are exploring the potential of microgrids as a means of providing localized energy solutions, particularly in rural areas. Energy storage technologies such as batteries and pumped hydro storage are gaining traction in both countries, enabling the integration of renewable energy and improving grid stability (the ability of an electrical grid to maintain a balance between the production and consumption of energy, while also responding to voltage and frequency fluctuations). The increasing digitization of energy systems increases opportunities for EaaS providers to offer data-driven insights and optimization services. Solar Power as a Service, Energy Efficiency Services and Smart Grid Solutions are a few focussed areas in EaaS projects.
IGCC’s Contribution
The Indo-German Chamber of Commerce has been an indefatigable proponent with regard to viewing Energy as much more than a resource or commodity. Their contribution includes
- Conducting regular delegations amongst Indian and German businesses focusing on Energy, Green Hydrogen, Energy Storage Solutions,
- Organising multiple business Roundtable meetings,
- Facilitating German pavilions at Indian Trade Fairs,
- Participating actively at exhibitions and conferences around Energy
Energy Delegations: The Indo-German Chamber of Commerce (IGCC) organises several business delegation visits to India with a focus on Energy, Renewable Energy, and Storage Solutions including Green Hydrogen.
WindEnergy Hamburg 2024: Following their attendance every year, IGCC actively participated in this year’s WindEnergy Hamburg, which took place from the 24th of September to the 27th of September, 2024. This year, the trade fair received over 1,250 exhibitors and visitors from more than 75 countries.
Energy Efficiency Specialist
Amongst the many ways in which IGCC works towards efficient, innocuous and optimum utilization of Energy, they help in the transformation of executives into Energy Efficiency Specialists, through theoretical and practical training in the areas of engineering and management of energy-relevant applications. EUREM (European Energy Manager Training and Network) “is not only a continuing education programme, but also a global networking community of energy efficiency experts. The participants and graduates regularly meet at conferences, workshops and online platforms, to exchange experiences, get information on current energy topics and help each other with various tasks.”
Skill Development for India's EaaS Market
The rapid growth of the EaaS market in India necessitates a skilled workforce to meet the demands of this emerging sector. To ensure that Indian professionals are equipped with the necessary expertise, there is a pressing need for targeted skill development programs.
Key Skill Areas include
- Energy Management
- Renewable Energy Technologies
- Smart Grid Technologies
- Data Analytics
- Business Development
- Project Management
- Regulatory Compliance
Some potential Skill Development Programs include
- Incorporating EaaS-related courses into engineering, business, and management programs
- Establishing dedicated training institutes focused on EaaS technologies and practices
- Collaborating with EaaS providers and industry associations to offer practical training and certification programs
- Leveraging online platforms to provide flexible and accessible training modules on EaaS-related topics
- Implementing government-sponsored skill development programs to address the specific needs of the EaaS market
By investing in skill development programs, India can create a skilled workforce that is well-positioned to capitalize on the opportunities presented by the EaaS market. This will not only contribute to the growth of the domestic EaaS industry but also strengthen India's position as a global leader in sustainable energy solutions.
Why should we promote and opt for EaaS?
“The WMO provisional State of the Global Climate report confirms that 2023 is set to be the warmest year on record. Data until the end of October shows that the year was about 1.40 degrees Celsius (with a margin of uncertainty of ±0.12°C) above the pre-industrial 1850-1900 baseline. The difference between 2023 and 2016 and 2020 - which were previously ranked as the warmest years - is such that the final two months are very unlikely to affect the ranking.” (source: Provisional State of the Global Climate in 2023, WMO)
This suffices to say that it is high time that we as a developing civilization take as many steps as possible to manage our resources better than yesterday. Scientists and Environmentalists define the two ends of the environmental problem as
- The sources (shortages in the “sources” or “taps” of raw materials/natural resources, and thus a problem of depletion)
- The sinks (a lack of sufficient “sinks,” to absorb wastes from industrial pollution, which “overflow” and cause harm to the environment)
(Source: The Depletion of the World’s Natural Resources; Is Population the Problem? By Fred MagdoFF).
A century back, the focus was more on the problem of sources in the form of shortages of raw materials, such as fossil fuels, basic minerals, topsoil, freshwater, and forests. On the contrary, in today’s date, the emphasis has shifted to the problem of sinks, as represented by climate change, ocean acidification, and the production of toxics. Opting for EaaS is one step towards the maintenance and management of our resources, concentrating equally on the problem of sources, as well as on that of sinks.
Author
Priyangana Kashyap
Communications, IGCC
MA Literary & Cultural Studies, EFLU, Hyderabad;
German Language Expert;
Translator