CONTEXT

73 percent of worldwide anthropogenic greenhouse gas (GHG) emissions stem from energy production and use according to the International Energy Agency (IEA). As the earth warmths and many countries experience sustained population growth, the global increase in energy demand is expected to reach 47 percent by 2050. Meanwhile, more than a third of all emissions reductions required to achieve the Paris Agreement target and limit global warming by 1.5°C can be solely achieved through energy efficiency. But the uptake of modern, efficient energy systems is facing several barriers, from higher upfront costs compared to conventional equipment to perceived performance and maintenance risks of new and unfamiliar technologies.

THE MODEL

Servitisation refers to an innovative business model where customers engage with solutions on a pay-per-use model (focused on OPEX) rather than purchasing the physical asset (traditional CAPEX model). Clients benefit from the advantages of high efficiency and state of the art solutions, while solely paying for the amount of service they consume, while the technology providers retain the ownership and maintenance responsibilities. Hence, this approach encourages the uptake of modern, efficient systems by sparing end-users the costs of acquiring and operating the equipment as well as any associated risks. Meanwhile, the lure of a model that allows users to benefit from improved performance and reduced emissions without any hassle helps providers of climate-friendly and energy-efficient technologies broaden their consumer base through competitive differentiation.

THE SET ALLIANCE

Through the success of the Cooling as a Service (CaaS) and Efficiency as a Service (EaaS) projects, and to support markets adopting the servitisation model more broadly, BASE is institutionalising these programmes through the global Servitisation for Energy Transition Alliance (SET Alliance).

The mission of the SET Alliance is to mainstream the deployment of the servitisation business model on sustainable clean and energy-efficient applications and accelerate the transition towards a net-zero and climate-resilient future, circular in its economy. The Alliance targets both developed and emerging markets, focusing on sustainable clean and energy-efficient solutions, which include solutions such as cooling, heating, and lighting, but also means of renewable energy production including solar, energy storage solutions, as well as digital technologies that enable an effective and transparent servitisation deployment.

To achieve its mission, and solely in accordance with the interests of its member agencies, the SET Alliance acts on several pillars:

1. Access to different developed tools: standardised contracts, pricing models, informative documentation.
2. Professional development and technical support: technical assistance from experts in implementing servitisation.
3. Exposure: inclusion in various communication content and knowledge-sharing activities.
4. Access to a Network of experts: enabling companies to expand and gain access to a network of investors, financial institutions, insurers, manufacturers, developers, development agencies and UN agencies interested in supporting the servitisation model.
5. Engage in Collaborative Projects: identifying and exploring opportunities for collaboration to accelerate project developments.
6. Research and Innovation: establishing partnerships for the development of research on the topic of servitisation.
7. Collaboration: Develop and undertake joint projects to develop solutions.
8. Synergies and Peer to Peer learning: sharing of data, performance, and other expertise.
9. Pipeline aggregation: creating a marketplace of opportunities.

All members of the alliance are involved in designing, implementing, or financing sustainable clean and energy-efficient solutions, projects, or companies.
The SET Alliance is governed by a Steering Committee formed by (in alphabetical order) Aston Business School, ATMOsphere, Energy Partners Refrigeration, KAER, The Advanced Services Group, and the University of Oxford, and administered by BASE, which acts as the secretariat and is responsible for operational tasks. The Steering Committee supports in guiding activities and programmes. All members of the Steering Committee are SET Alliance members in good standing.