Workshop -Financing EaaS

Agoria and Febelfin are organizing a Workshop on Financing Efficiency-as-a-service (EaaS) with the actors of the financial sector. The aim of the workshop is to come to a common understanding regarding the risks and opportunities associated with the financing and deployment of EaaS and the contractual requirements needed to ensure such a deployment.

Increasingly, manufacturers and distributors are seeking to create value beyond their products by building service-based business models. Such transformation is most often driven by a need to gain in competitiveness, enhance the firm’s performance and increase customers’ satisfaction. Recent tensions in supply of raw materials and components have exacerbated the need to transition to circular and more resilient business models. Efficiency as a Service (EaaS) is one of these models that allows end users to access the benefits of high end energy-efficient technologies through a pay-per-use or pay-per-outcome agreement. Under EaaS, the technology provider is responsible for the design, installation, operation, performance and maintenance of the equipment as well as its end of life management. The customer simply pays for the output and services delivered.

Such a shift in responsibilities entails a transfer of risks from the customer to the EaaS provider, such as:

• the financial risk related to the upfront cost of the equipment,
• the technical risks related to equipment failures,
• the performance risks related to the system’s efficiency,
• the business risks linked to decline in demand and,
• the loss of ownership risk.

Having a robust EaaS agreement is therefore essential in order to on the one hand ensure the roles and responsibilities of each party to the contract are clear and on the other hand to mitigate the risks faced by the parties to the contract.

In order to support technology providers transition from a typical sale of an energy efficient project/equipment to a pay-per-use offering, Agoria developed a standardized Efficiency-as-a-Service Agreement that establishes a clear and transparent contractual framework between the supplier of EaaS and his customer.

The deployment of such a model cannot take place without the support of the financial sector. It is therefore fundamental that EaaS projects and models are developed in such a way that they are deemed bankable by actors of the financial sector.

 

• When: Thursday 10^th of November 09 :45 – 13:15
• Where : Febelfin – Bd Roi Albert II 19, 1210 Brussels

• 09:45 – Welcome coffee
• 10:00 –  Introduction to the  “efficiency-as-a-service” business model
• 10:15 –   EaaS Risks and Opportunities and Risk mitigation measures
• 11 :30 –  Presentation of EaaS Standardized contract and discussion over minimum requirements
• 12 :45 – Light Lunch

• Financial institutions interested in expanding their activities into Circular and Energy-Efficient projects.

 

This workshop is part of a series of events organised by Agoria and its consortium partners in the framework of the European Commission Horizon 2020 funded project « Efficiency-as-a-Service ». The project aims at accelerating the market adoption of energy efficient solutions in the EU through servitization. Similar events are being organised in the Netherlands, Spain and the EU by Agoria’s consortium partners EIT Innoenergy, ANESE and BASE.

 

For more information please contact Mira Tayah.