Most people agree that our resources are finite. From an environmental perspective, keeping global emissions down is critical in preventing irreversible climate change. From a business perspective, the case is just as pressing as volatile energy prices continue to wreak havoc on organizations’ bottom lines, making it difficult to plan with confidence and invest at pace.
Meanwhile, ongoing skills shortages present difficulties in implementing Net Zero initiatives. Electrifying operations, boosting energy efficiency, and making meaningful progress towards Net Zero often requires technological solutions, and the expertise required to install and maintain them can be difficult to find. These technological solutions require both insights on custom solutions and investment that are often in short supply.
Credit: ABB
BESS as-a-Service (BESSasS) offers a solution for businesses that cannot afford to build on-site BESS capacity and/or lack the right technical knowledge and resources to implement and manage it.
According to a 2024 survey by the Energy Efficiency Movement, more than 90 percent of companies intended to make energy efficiency improvements within the next three years. Nearly half of them intended to become carbon neutral within the next five years. The world may have already changed significantly since 2024, but many of the challenges remain the same – namely cost, a lack of in-house expertise, and a fear of downtime caused by disrupting existing systems.
The single biggest barrier, cited by 53 percent of companies surveyed in 2024, was that of cost, particularly in relation to capital expenditure (CapEx). The picture that emerges is one in which industries are unclear on how best to pursue their Net Zero goals, while limiting both their costs and exposure to potential disruption.
The emergence of the As-a-Service approach
The “As-a-Service” approach has emerged as a possible solution, allowing businesses to access the latest energy-saving technologies, while reducing the up-front cost of implementing them. It is essentially a subscription model, and so while there is still a cost, it is limited to predictable operational expenses only. The initial investment, i.e. the CapEx, is significantly reduced, and replaced with ongoing OpEx. High CapEx costs for renewable energy and electrification projects can be a major barrier to investment. The As-a-Service approach makes these costs far more manageable, while also reducing the organization’s exposure to disruption and downtime.
Battery energy storage systems (BESS)
Renewable energy sources such as wind and solar can be intermittent. As a result, BESS capacity is crucial to ensure that organizations leverage the benefits of on-site renewable generation. However, BESS also requires up-front investment. Running and maintaining BESS capacity requires highly specific expertise. BESS-as-a-Service (BESSaaS) allows organizations to absorb the cost in a more manageable way, and essentially outsource the installation, commissioning, and maintenance of assets. This removes the need to build and train in-house teams and ensures the availability of assets on demand.
In the BESSaaS model, the BESSaaS partner takes care of everything required to build and operate the BESS, including finance, insurance, as well as commissioning, maintenance, and cybersecurity. The responsibility for ensuring that all these factors are implemented or operated to a satisfactory standard remains with the BESSaaS partner.
There are longer-term benefits too. A BESSaaS contract typically covers future modernization, upgrades, or retrofits. If a new, superior technologies or enhancements emerge, then these can be implemented without having to raise a new round of CapEx each time. Businesses can therefore reduce their total cost of ownership (TCO) and maximize their return on investment.
New revenue streams
The As-a-Service model also presents new revenue opportunities. A good example is an ABB project at a commercial business park in the UK, where the customer decided to turn their existing solar PV system into a revenue-generating asset as part of their BESSaaS contract. As a result, the site is projected to cut its energy costs by 80% while generating up to £92,500 in additional annual income through energy trading and participation in ancillary grid services.
Credit: ABB
Energy management monitoring helps unlock energy savings more easily than systems without digital capabilities, as well as reducing CO₂ emissions
Adding digitalization and AI into the mix
Many businesses recognize that digital technologies have an important role to play in the energy transition. However, nearly one in three reported concerns that they lack the necessary in-house skills to deploy these technologies effectively to add meaningful value. This is another area where BESSaaS can help.
As well as the providing the physical energy storage capacity, BESSaaS agreements can also incorporate digital and AI-driven tools such as Intelligent Energy Management and Optimization. This helps to maximize energy savings through peak shaving and time-of-use energy management, while also ensuring that on-site energy consumption is maximized where possible when costs are at their lowest. As such, businesses can store energy when prices are low, and then use it when prices are high, as well as selling off any excess at optimal prices. In parts of the world where energy prices fluctuate wildly, AI-driven peak shaving can reduce energy costs by potentially vast amounts.
Enabling a more affordable Net Zero future
Renewables, electrification, and efficiency are the three main routes towards a more sustainable future. The As-a-Service approach can bring all three within the reach of almost any organization.
With an as-a-Service approach, an OpEx-only model like BESSaaS makes it easier and more affordable to tap into the benefits of on-site renewable energy sources. Up-front cost is no longer an excuse for putting off investment or failing to investigate the latest sustainable technologies and approaches. Businesses can now enjoy access to cutting-edge, AI-driven technology and specialist consultancy from their partners that can help them rapidly adopt and scale up their energy infrastructure. The path to Net Zero has never been more achievable.