Energy-as-a-Service in the Swedish Real Estate Sector

Abstract: In order to reach the global set sustainability goals, it is of the utmost importance that we phase out fossil fuels and reduce our total emissions. We also need to ensure that we minimize and make our energy use more efficient. In 2020, Sweden's construction and property sector accounted for approximately 34% of Sweden's total final energy use. As an answer to this problem, a new energy business model has emerged in recent years, called Energy-as-a-Service (EaaS). The basic idea is to service energy supply and offer an overall solution rather than a product. The customer offer also includes installation of the energy plant, maintenance, operation, etc. Customers only pay a monthly fee and the energy companies provide full responsibility for sustainable energy production. The purpose of this work is to investigate whether Energy-as-a-Service as a business model can function as a driving force to reach a more sustainable energy supply within the Swedish real estate sector. In addition, which factors are missing for this business model to reach its full potential are examined. For this study, three different methods are implemented to answer the research question. A systematic literature study, an interview study with the company Greenergy and a survey study with the companies Vattenfall, Sweco and Recap Energy. The results show that there is a certain potential for the Energy-as-a-Service business model to influence and drive the green transition forward. Above all, it is the business model's ability to enable customers to change to a more sustainable energy supply that is the contributing factor. On the other hand, there is some limitation for the EaaS business model to influence the transition completely on its own. Some of the obstacles for EaaS at the moment are partly the lack of knowledge about the business model among the customers. A functioning digital infrastructure is also missing to implement more advanced technology in the business model. Technology like AI will be a necessary factor in the future to improve this business model and for it to reach its full potential. In order for the business model to spread more widely in society, a change in perspective is required when it comes to society's view of the energy issue, a more decentralized approach with smaller local energy production units is necessary. In addition, a restructuring of current incentives regarding green energy investments is needed. These also need to include the procurement of services, such as EaaS, to reach a greater spread.