What would we do without energy? from smartphones to transportation our way of life runs on energy. But faced with the realities of climate change and 1.3 billion who lack access to modern energy, Scott Foster from the UN Economic Commission for Europe (UNECE) argues that we have got the energy equation seriously wrong and need to change the way we think about energy.
Energy as a Service
We can meet the challenges of sustainable development and climate change if we think of energy as a service instead of a commodity. Scott argues that we want hot showers and cold beers not barrels of oil or kilowatt-hours of electricity. Fostering this revolution to think in terms of services and obtaining this value most efficiently will radically reduce waste, improve efficiency and help address climate change and energy poverty.
Transforming Energy Utilities
There is a compelling business case for transforming energy utilities into service providers because they have the financial capacity, the expertise and the business partners to make it happen. Most importantly, we know it works! The successful experience of California where it was implemented after the oil crisis in 1978 for gas and 1982 for electricity shows has been replicated in 15 other American states for electricity and 23 for gas, with legislation pending for 12 other states.
Incentives for the market to work
The winning formula is to share part of the savings between the end users and the utility so that the energy provider works for its customers to lower energy consumption and reduce energy bills. Sharing savings turns out to be more profitable then selling more energy which aligns the interests of all parties in a win-win relationship. A far cry from the traditional model of selling ever more energy that has fostered massive investment in efficiency, renewables and innovation while creating jobs, growing the economy with the added benefits of lower carbon and environmental and footprints. It is high time we put this experience to test in Europe other parts of the world…