The Servetia initiative was launched by BASE and E4S with the support of Fondation Valery to facilitate the accelerated adoption of clean and energy-efficient technologies in Switzerland using the innovative Servitisation (also known as ‘as-a-Service’ or XaaS) business model. BASE has extensive experience in designing and implementing this model across sectors and industries around the world through its CaaS (Cooling-as-a-Service) initiative, EaaS (Efficiency-as-a-Service) project, and the global SET Alliance (Servitisation for Energy Transition Alliance), and will work alongside stakeholders engaged with the initiative to design and develop the necessary legal, financial and contractual frameworks.
According to the Swiss Federal Office for Energy (SFOE), buildings account for 40% of Switzerland’s end energy demand and approximately one-third of the country’s CO2 emissions. Servetia aims to facilitate the wider adoption of clean and energy-efficient technologies in commercial, public and industrial facilities as well as building complexes, which can play a critical role in reducing emissions and helping Switzerland achieve its climate goals. In Switzerland, Energy Efficiency (EE) gains are an important and often overlooked aspect of the country’s path towards decarbonisation. According to calculations by SFOE, the potential electricity savings from heating, cooling and lighting systems alone amount to as much as 8TWh per year. This illustrates the need for innovative business models to drive energy efficiency and emissions reductions for Switzerland to meet its climate goals and reach net zero by 2050.
Servitisation refers to an innovative business model where customers engage with solutions on a pay-per-use basis (focused on OPEX) rather than purchasing physical assets (traditional CAPEX model). This is an established model in Switzerland for example in the mobility sector, with solutions for bikes, cars, and scooters provided ‘as-a-Service’ on a subscription or pay-per-distance basis. Under this model, clients can benefit from the advantages of high efficiency and state-of-the-art solutions, paying for the amount of service they consume whilst technology providers retain ownership and responsibility for maintenance and repair.
This tackles the barrier of high upfront costs often associated with clean and efficient technologies and allows customers to benefit from optimised performance and emissions reductions. For technology providers, offering as-a-Service solutions can broaden their customer base through competitive differentiation and bring recurring revenue streams. Importantly, the as-a-Service model provides a promising prospect for investors as it offers stable and long-term contracts, where both the equipment and the agreement can serve as collateral, thereby increasing the potential for returns. Investors have the opportunity to rapidly grow their market exposure and build ESG financing portfolios aligned with their values.
The Servetia initiative was launched by BASE and E4S with the support of Fondation Valery and will provide proof of concept for the implementation of the X-as-a-Service model to promote the adoption of clean and energy efficient solutions, and will focus on the energy ecosystems of buildings in Switzerland. To do this, pilot projects are planned where Servetia will bring together solution providers, financing partners and end-users to collaborate on the design and implementation of impactful solutions.
Servitization offers a clear solution for businesses to work towards their climate goals by eliminating the upfront cost of clean and efficient technologies, removing performance risks, and reducing energy consumption. The “as-a-Service” model also supports the circular economy by incentivising technology providers to design for the optimisation of a systems life-cycle and value retention, such as through modular design and the use of reusable or recyclable components.
Servetia represents a clear opportunity for different stakeholders, such as technology providers interested in developing innovative business models, investors looking for projects in energy efficiency to finance, and building owners and businesses looking to make important steps towards net-zero.
