Latest news with #Scope2
Yahoo
6 days ago
- Business
- Yahoo
Energy as a Service Market to Surpass Valuation of US$ 193.7 Billion By 2033
Energy as a service market holds significant untapped potential, driven by rising decarbonization mandates, microgrid resilience demands, digital twin analytics, and pay-per-use models unlocking capital-light electrification across emerging economies and asset-heavy industrial sectors globally. Chicago, July 16, 2025 (GLOBE NEWSWIRE) -- The global energy as a service market was valued at US$ 75.3 billion in 2024 and is expected to reach US$ 193.7 billion by 2033, growing at a CAGR of 11.07% during the forecast period 2025–2033. Energy as a service market adoption is being propelled by subscription-based models that let enterprises shift capital expenditure to predictable operating outlays. In 2023, Microsoft, Walmart, and Taiwan Semiconductor each signed multiyear service agreements bundling on-site solar arrays, battery storage, and real-time energy management software, paying only for validated kilowatt-hours delivered. According to Rocky Mountain Institute, more than 460 commercial campuses worldwide already use outcome-linked contracts where the vendor guarantees uptime and carbon-intensity thresholds. Driving this momentum is the intensifying CFO focus on balance-sheet-light strategies, coupled with investor pressure to prove Scope 2 emissions progress without locking cash into depreciating hardware. Request Sample Pages: In parallel, vendors are sharpening their pricing engines by mining interval data from smart meters deployed under the same agreements. Schneider Electric reports that devices connected to its EcoStruxure platform generated 38 trillion data points in 2023, creating the analytical backbone for dynamic subscription tiers that reflect weather volatility and demand-response signals. The energy as a service market has therefore shifted from simple power-purchase-agreement thinking to a broader 'X-as-a-Service' framework, mirroring cloud-computing economics. Real-world evidence from Prologis distribution centers shows a twelve-month payback on resilience fees when grid outages exceed eight hours, underscoring how granular, usage-based billing resonates with facility managers. Key Findings in Energy As a Service Market Market Forecast (2033) US$ 193.7 billion CAGR 11.07% Largest Region (2024) North America (44%) By Service Type Energy Supply Services (42.40%) By End Users Commercial (64%) Top Drivers Rising energy costs driving demand for predictable operational expense models Corporate sustainability mandates requiring zero upfront capital renewable energy solutions Aging infrastructure requiring upgrades without large capital expenditure budget commitments Top Trends Subscription based solar and battery storage solutions gaining enterprise adoption AI powered energy optimization platforms integrated into comprehensive service offerings Microgrids offered as turnkey managed services for resilience focused customers Top Challenges Complex state regulatory frameworks hindering standardized service deployment across markets Customer education gaps regarding long term savings versus traditional procurement Financing structures requiring new risk assessment models for service providers Advanced Digital Twins Optimize Service Performance and Reduce Operational Uncertainties Energy as a service market participants are increasingly relying on advanced digital twins to predict component degradation, optimize dispatch sequences, and certify performance before assets are energized. By July 2024, Siemens reported deploying over 9,200 virtual replicas of on-site microturbines and batteries across corporate campuses, cutting commissioning time by an average of 27 engineering days. These twins ingest data from LiDAR scans, high-resolution thermography, and enterprise resource-planning systems, creating a unified model that finance teams can audit. The approach mitigates uncertainty that once stalled service-contract negotiations, especially in high-temperature zones where equipment lifespans historically deviated from datasheet assumptions. In addition, the emergence of physics-informed machine learning is transforming asset-health scores into actionable warranty terms, a development that is redefining risk allocation within the energy as a service market. General Electric's 2024 pilot with Brookfield Asset Management demonstrates the payoff: real-time condition-based maintenance alerts reduced unscheduled downtime on 128 gas engines to under 14 hours annually, enabling the service provider to commit to tighter availability SLAs without inflating contingency reserves. Investors read these analytics-driven guarantees as concrete proof of technological maturity, which in turn is unlocking larger tranches of infrastructure debt at sub-treasury spreads. Decarbonization Mandates Intensify Demand For Outcome-Based Energy Procurement Solutions Worldwide Energy as a service market momentum is further amplified by decarbonization mandates that now extend beyond headline net-zero goals into granular procurement guidelines. The Inflation Reduction Act in the United States ties new clean-energy tax credits to measured lifecycle emissions and domestic content, nudging corporate buyers toward outcome-based service models where compliance reporting is built in. Similarly, India's Energy Conservation Act amendment requires designated consumers to purchase clean-capacity certificates, pushing industrial conglomerates toward off-balance-sheet service agreements covering both generation and efficiency retrofits. Service providers are capitalizing on these mandates by bundling renewable PPAs, electrification retrofits, and 24/7 carbon-free tracking dashboards. Against this regulatory backdrop, the energy as a service market is witnessing unprecedented interest from heavy emitters such as cement and steel producers. Holcim's 2024 deal with ENGIE Solutions exemplifies the trend: an on-site heat-recovery system combined with green hydrogen production will be billed per ton of clinker processed, with embedded penalties if emissions-intensity targets slip. Elsewhere, Chilean copper miners are adopting similar outcome-oriented contracts to secure low-carbon electricity even during drought-driven hydro shortages. By aligning payment with verifiable decarbonization outcomes rather than kilowatt-hours alone, providers insulate revenue streams from commodity-price swings and policy volatility. Microgrid Proliferation Anchors Resilience Value Proposition Within Service Agreements Today Energy as a service market value propositions increasingly hinge on resilience, and microgrid proliferation is the tangible proof. The United States installed 7.9 gigawatts of microgrids by late 2023, National Renewable Energy Laboratory data show, with roughly 5,200 installations operated under service agreements that bundle generation, storage, and islanding controls. Hospitals in Florida, for instance, maintained critical wards during Hurricane Idalia thanks to service-backed microgrids where vendors absorbed fuel logistics and black-start responsibilities. In Japan, Fujitsu's Kawasaki campus leverages a cogeneration-battery microgrid that kept servers running through successive 2024 typhoon-induced outages, providing continuity that traditional utility tariffs could not guarantee. This focus on uptime has propelled utilities themselves to participate in the energy as a service market through unregulated subsidiaries. Consolidated Edison's Clean Resilience offering now installs and operates solar-plus-storage for New York supermarkets, charging an annual resilience retainer layered over volumetric energy fees. The economics are favorably influenced by avoided spoilage costs that reached US$ 260 million across grocery chains during recent blackouts. Meanwhile, data-center operators stipulate seven-nines availability in their contracts, spurring vendors to integrate gas-fired backup gensets with lithium-ion storage and AI-driven load-shedding. Microgrid-centered architectures are redefining reliability benchmarks and translating them into bankable revenue streams. Evolving Regulatory Landscapes Encourage Innovative Energy Service Contract Structures Globally Energy as a service market expansion is also shaped by evolving regulatory landscapes that encourage creative contract structures. In February 2024, the European Union finalized the Electricity Market Design reform, explicitly recognizing long-term service agreements as instruments eligible for state-backed credit guarantees, provided they demonstrate consumer savings and emissions reductions. This recognition lowers financing costs for campus-scale deployments by widening the pool of credit-worthy offtakers. Concurrently, California's new Virtual Power Plant tariff gives residential aggregators the legal clarity to monetize behind-the-meter batteries as a service, converting homeowners into micro-prosumers without them navigating complex wholesale rules. These regulatory enablers are shifting the competitive tectonics within the energy as a service market. Independent power producers now vie with building-automation giants and telecom-tower companies, each leveraging domain-specific policy advantages. Asia Pacific illustrates the point: Singapore's enhanced third-party access code permits service providers to port excess rooftop solar between buildings under common digital sub-metering, essentially commoditizing kilowatt-hour attributes across real-estate portfolios. Meanwhile, Brazil's modified distributed-generation decree removes capacity caps for community solar under leasing-style contracts, accelerating rural electrification while maintaining consumer price shields. The upshot is a fertile canvas for service innovation that transcends national idiosyncrasies. Emerging Markets Leapfrog With Pay-Per-Use Clean Energy Solutions Through Incentives Energy as a service market leaders are increasingly turning toward emerging economies, where pay-per-use models circumvent capital scarcity and grid limitations. In Sub-Saharan Africa, Husk Power Systems operates 200 solar-hybrid minigrids under a usage-based fee that averages 0.65 kilowatt-hour equivalent per school, providing reliable electricity to nearly 140,000 households. Customers top up mobile wallets similar to airtime, while Husk owns, operates, and maintains assets, recouping costs through diversified income streams including appliance financing. Similar trajectories appear in Southeast Asia: Philippines-based Spectrum rents solar rooftops to garment factories, bundling maintenance and performance insurance, and recovers investment through predictable service invoices. Such agile business models are accelerating financial inclusion while enlarging the addressable energy as a service market. The World Bank's Distributed Access Taskforce reports that micro-service utilities added nearly 1.2 million new rural connections during 2023, outpacing traditional grid rollout. Importantly, default rates remained below four per thousand accounts when digital payments were integrated with smart metering, validating the creditworthiness of previously underserved segments. This evidence encourages blended-finance vehicles such as USAID's Power Africa to commit grant-based risk cushions, catalyzing private operators to scale portfolios beyond pilot stages. Pay-per-use energy services are becoming a cornerstone of equitable electrification. Integration Of EV Charging Services Expands Revenue Streams For Providers Energy as a service market scope now extends into electric mobility, where integrated charging solutions are unlocking fresh revenue streams. In 2024, Tritium partnered with Enel X to roll out 2,500 fast chargers for delivery fleets under a charging-as-a-service contract that bundles hardware, software, maintenance, and renewable certificates. Fleet owners pay a per-mile energy subscription that eliminates upfront charger acquisition costs and streamlines reimbursement across multi-site operations. Early adopters such as Amazon Logistics report that the model shaved vehicle downtime by syncing battery state-of-charge data with route-optimization algorithms, enhancing both operational efficiency and driver satisfaction. Commercial real estate is likewise embracing the intersection of mobility and the energy as a service market. Brookfield Properties converted fifty US shopping malls into mobility hubs, installing bidirectional chargers capable of exporting up to 60 megawatt-hours daily during grid-stress events. Revenue-sharing clauses guarantee property owners a minimum cash flow per parking bay, while service providers capture ancillary-service payments and carbon-credit proceeds. Automakers are also entering the fray: Ford's 2024 Charge Angels program offers dealerships turnkey charging-as-a-service packages including cybersecurity monitoring and transformer upgrades. Together, these initiatives transform charging infrastructure from a cost center into a resilient profit platform. Request Region or Segment-Specific Customization – Free of Charge: Strategic Collaborations and Funding Catalyze Rapid Scale-Up Of Offerings Worldwide Energy as a service market momentum is ultimately underpinned by strategic collaborations and diversified funding channels that accelerate scale-up. In April 2024, BlackRock's Global Infrastructure Fund and EDF signed a joint platform targeting industrial-decarbonization projects, pooling US$ 3.2 billion in equity with concessional debt from the European Investment Bank. The alliance aims to commission 480 distributed-energy systems across five continents by 2027, leveraging EDF's project pipeline and BlackRock's asset-management expertise. Simultaneously, Mitsubishi Corporation launched a venture with Google Cloud to embed AI optimization into service contracts, ensuring assets self-tune to weather and price signals without human override. Capital abundance is triggering consolidation within the energy as a service market as well, with 12 notable mergers announced since January 2023. Centrica's acquisition of ENER-G Cogen International added 1.1 gigawatts of customer-sited generation capacity to its service ledger, while Schneider Electric's purchase of AutoGrid in 2022 empowers holistic demand-side orchestration across 80 utility territories. To sustain differentiation, providers are forming ecosystem alliances with cybersecurity firms and insurance underwriters, offering clients warranty-backed resilience guarantees that exceed traditional force-majeure clauses. Crucially, the energy as a service market continues to attract green-bond issuances, evidenced by US$ 940 million of notes priced in May 2024 at yields comparable to municipal debt, signaling investor confidence in long-term cash-flow stability. Global Energy As A Service Market Major Players: Schneider Electric Centrica plc Siemens Engie Honeywell International Inc. Veolia EDF Johnson Controls Bernhard General Electric Entegrity Enel SpA Ørsted A/S NORESCO, LLC Wendel Other Prominent Players Key Market Segmentation: By Service Type Energy Supply Services Operational and Maintenance Services Energy Efficiency and Optimization Services By End User Commercial Industrial By Region North America Europe Asia Pacific Middle East Africa South America Get Expert Validation Before You Purchase: About Astute Analytica Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements. With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace. Contact Us:Astute AnalyticaPhone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)For Sales Enquiries: sales@ Follow us on: LinkedIn | Twitter | YouTube CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@ Website: nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Newsweek
29-05-2025
- Business
- Newsweek
Microsoft Reports Mixed Progress Toward Ambitious 2030 Carbon Negative Goal
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. In 2020, Microsoft set an ambitious climate goal to be carbon negative by 2030. Halfway into the decade, the company's latest sustainability report released Thursday shows the software giant has a long way to go to meet that goal but may be starting to bend its emissions curve downward. The report shows the company's total 2024 greenhouse gas output of 15,543,000 metric tons is still about 23 percent higher than its 2020 baseline of comparison. But Microsoft's total annual emissions in 2024 are slightly lower for the first time since the artificial intelligence boom brought a surge in data centers, computing power and energy consumption. The 2024 emissions are roughly 1.4 million metric tons lower than in 2023, and the lowest annual emissions the company has reported since 2021. Microsoft's climate goal to be carbon negative by 2030 means not only eliminating its total emissions but also supporting projects that draw carbon dioxide out of the atmosphere. "We're focused on the long-term goal of meeting our 2030 commitments," a Microsoft spokesperson told Newsweek via email. "The annual reporting process is an important check-in each year to see how we're doing, and it informs our decision-making as we keep working to meet those goals over the next five years." The Microsoft logo in San Francisco, California, May 13, 2025. The Microsoft logo in San Francisco, California, May 13, 2025. Smith Collection/Gado/Getty In a foreword to the report, Microsoft Corporation Vice Chair and President Brad Smith and Chief Sustainability Officer Melanie Nakagawa wrote that "our journey towards being carbon negative is a marathon, not a sprint." They noted that while emissions have been going in the wrong direction since Microsoft made its climate commitments in 2020, the increase has been "modest" compared to the company's revenue growth and far higher energy consumption over that period. Smith and Nakagawa wrote that the company remains "focused on sustained progress towards our 2030 goals." Cloud computing and the explosion of generative AI and large language models have greatly increased energy consumption by the tech sector. If the regional power grid that supplies a data center or tech campus burns fossil fuels to generate electricity, that drives up the company's emissions due to energy use, known as Scope 2 emissions. "We must also bring more carbon-free electricity onto the grids where we operate," Smith and Nakagawa wrote. According to the report, Microsoft used power purchase agreements to contract 19 gigawatts of new renewable energy in 2024 in 16 countries. Microsoft also sought other carbon-free energy sources, including an agreement last September with Constellation Energy that aims to restart an idle reactor at the Three Mile Island Nuclear Station in Pennsylvania. A Microsoft spokesperson said the company is "on track to achieve our 2025 target of procuring enough renewable energy to cover 100 percent of our energy consumption." Greenhouse gases that arise from the suppliers and the company's value chain, known as Scope 3 emissions, account for the bulk of Microsoft's CO2 output. According to the report, the company's Scope 3 emissions have grown 26 percent since 2020. Microsoft requires its large-scale suppliers to commit to a transition to 100 percent carbon-free electricity for the goods and services they deliver. The report detailed innovative solutions to reduce emissions from the construction and operation of data centers. Last week, Microsoft announced an agreement with a Massachusetts company called Sublime Systems, which has developed a low-carbon method for cement production. Traditional cement-making methods produce massive amounts of CO2, and the industry is a major global source of emissions. Microsoft's purchase agreement for more than 622,000 tons of low-carbon cement will help the new company ramp up its output. "Microsoft is stepping up as the first customer for our future megaton-scale plant, enabling us to more rapidly build and scale Sublime Cement as a global, enduring solution for clean construction." Sublime Systems CEO and Co-founder Leah Ellis said in a statement.
Muscat Daily
28-05-2025
- Business
- Muscat Daily
Omantel advances Net Zero plan with emission cuts and renewables
Muscat – As climate action becomes increasingly urgent across industries, Omantel is stepping forward with a clear commitment to sustainability. The company has formally adopted a Net Zero target for 2050 and set an ambitious near-term goal to reduce Scope 1 and Scope 2 greenhouse gas emissions by 45% by 2030, using 2023 as the baseline year. This commitment reflects Omantel's broader sustainability vision and its role as a national digital enabler, supporting Oman's transition towards a low-carbon future. Rather than treating Net Zero as a distant aspiration, Omantel said it is taking measurable steps today to reshape its environmental impact. 'Our responsibility extends beyond digital infrastructure. It includes contributing to a more sustainable future for Oman. This target reflects both our ambition and the action we are taking to achieve it,' Lujaina Saif al Kharusi, Vice President of Governance, Regulatory Affairs and Compliance at Omantel, said in a press statement. A major step in this journey was reached in 2024, when Omantel redeemed 40,000 International Renewable Energy Certificates (I-RECs) sourced from the Dhofar Wind IPP through Nama Power and Water Procurement (Nama PWP). This clean electricity, equivalent to 40,000 MWh, led to a 12.38% reduction in the company's market-based Scope 2 emissions and prevented more than 88,000 tonnes of CO₂ equivalent from entering the atmosphere. Without intervention, emissions would have risen alongside business growth. Instead, Omantel achieved a 2.77% decrease in total emissions for 2024 compared to 2023, avoiding a projected 10.96% increase. By 2026, emissions are expected to remain just 5.15% above 2023 levels, significantly below the business-as-usual projection of nearly 31%. These results underscore the effectiveness of Omantel's approach. Omantel also ranks among the first telecom operators in the region to adopt renewable energy certificates at this scale. This signals both technical capability and a serious commitment to operational sustainability. 'Setting goals is important, but following through on them is what defines leadership,' said Lujaina. 'Integrating wind power into our energy portfolio is just one example of how we are aligning climate goals with real action.' By embedding sustainability into its strategy, Omantel is contributing to Oman's national Net Zero roadmap and helping shape a future where connectivity and climate responsibility advance hand in hand.
Business Times
09-05-2025
- Business
- Business Times
Common standards needed to boost trade in renewable energy certificates
[SINGAPORE] The lack of standards around the cross-border trade of renewable energy certificates (RECs) is a key barrier preventing companies from signing offtake agreements with low-carbon electricity producers around South-east Asia, said Low Xin Wei, assistant chief executive for the markets and systems division at the Energy Market Authority. This means that there is a lack of additional revenue for these electricity importers, with which the Singapore government is looking to ink electricity import contracts to meet its net-zero targets. He said that major international standards, such as the Greenhouse Gas Protocol, do not explicitly recognise the cross-border trade of RECs as a valid form of renewable energy procurement. The only exceptions are in the European Union and North America, where markets have been harmonised, said Low at a climate conference on Thursday (May 8). RECs are tradeable assets that are issued when 1 megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource. Companies can purchase these certificates to reduce their Scope 2 emissions, which are emissions arising from their use of electricity generated from power stations. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Given that Singapore has limited renewable energy resources, the amount of RECs that can be generated locally is constrained. There would only be a small pool of such certificates for companies to buy to offset their Scope 2 emissions. The Ministry of Trade and Industry previously announced that plans to establish a cross-border trading framework were under way. Low also said that there is a need to continue with concrete, small steps to make the Asean power grid a reality, starting with bilateral projects. 'Low-hanging fruits would be those which make use of existing interconnectors.' This includes the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project – a cross-border electricity trade that imports hydropower from Laos to Singapore – as well as the Energy Exchange Malaysia, a platform to facilitate cross-border electricity sales focused on renewable energy.
Business Times
08-05-2025
- Business
- Business Times
Lack of standards around cross-border renewable energy certificates trade prevents offtake agreements: EMA senior exec
[SINGAPORE] The lack of standards around the cross-border trade of renewable energy certificates (RECs) is a key barrier preventing companies from signing offtake agreements with low-carbon electricity producers around South-east Asia, said Low Xin Wei, assistant chief executive, markets and systems division, Energy Market Authority. This means that there is a lack of additional revenue for these electricity importers, which the Singapore government is looking to ink electricity import contracts with to meet its net-zero targets. He said that major international standards, such as the Greenhouse Gas Protocol, do not explicitly recognise the cross-border trade of RECs as a valid form of renewable energy procurement. The only exceptions are in the European Union and North America, where markets have been harmonised, said Low, who was speaking at a climate conference on Thursday (May 8). RECs are tradeable assets that are issued when 1 megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource. Companies can purchase these certificates to reduce their Scope 2 emissions, which are emissions arising from their use of electricity generated from power stations. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Given that Singapore has limited renewable energy resources, the amount of RECs that can be generated locally is constrained. There would only be a small pool of such certificates for companies to buy to offset their Scope 2 emissions. The Ministry of Trade and Industry previously announced that plans to establish a cross-border trading framework were under way. Low also said that there is a need to continue with concrete, small steps to make the Asean power grid a reality, starting with bilateral projects. 'Low-hanging fruits would be those which make use of existing interconnectors.' This includes the Lao-Thailand-Malaysia-Singapore Power Integration Project – a cross-border electricity trade that imports hydropower from Laos to Singapore – as well as the Energy Exchange Malaysia, a platform to facilitate cross-border electricity sales focused on renewable energy.
