Energy-as-a-Service (EaaS) is a business model where customers pay for energy services on a subscription basis, without fully owning the energy infrastructure. The service provider, in turn, takes care of the design, installation, operation, maintenance, and financing of the energy system.

EaaS presents several benefits to customers, such as speed to implement, reduced upfront and running costs, and access to the best-in-class energy management and clean technologies, thus improving efficiency and reliability. Importantly, it can help customers reduce their carbon footprint and meet their sustainability targets.

A Guidehouse Insights report projects the global EaaS market to grow from US$15.5 billion in 2023 to US$154.9 billion in 2033 at a compound annual growth rate of 25.8%. The main drivers for this growth include rising demand for more flexible and sustainable energy solutions in the wake of climate change, the digitalisation of the energy sector, as well as the emergence of new technologies and business models.

In late-2021, Keppel launched its EaaS business for commercial and industrial customers, offering a one-stop solution for energy supply, cooling, smart energy management, distributed solar photovoltaics (PV) and electric vehicle (EV) charging solutions. Keppel’s EaaS has been gaining traction and market acceptance in Singapore and the region. By the end of June 2024, EaaS solutions made up S$2.6 billion of Keppel’s long-term contracts on the back robust demand across Singapore, China, Thailand and Vietnam. Keppel’s EaaS portfolio currently comprises a cooling capacity of more than 250,000 refrigeration tonnes, with a growing portfolio of solar PV and EV charging stations in various stages of operation and development.

Cindy Lim, Keppel’s CEO of Infrastructure, said “Energy-as-a-Service is at the intersection of two megatrends - decarbonisation and digitalisation. With the advent of digital technologies, we are making possible leaps in scaling up and capturing energy efficiency gains on both the supply and demand side. At the heart of Keppel’s EaaS delivery model is to help commercial and industrial customers reap the benefits of energy savings by leveraging AI and machine-learning in reducing energy usage, shifting loads, generating and storing energy onsite and installing microgrids. We see a huge addressable market for EaaS solutions in Singapore and in Asia, where we have already established beach heads.”

Keppel’s Operations Nerve Centre (ONC) is a key differentiator and enabler for the reliable delivery and accelerated expansion of its EaaS solutions. From a single location in Singapore, Keppel’s first ONC leverages artificial intelligence and machine learning algorithms to model and forecast energy demand and supply, optimise performance and perform predictive maintenance of its energy systems in Singapore and overseas. In July 2023, Keppel established its first overseas ONC in Ho Chi Minh City, which enables the Company to remotely monitor and optimise all of its energy assets in Vietnam in real-time. Other satellite ONCs are also being planned.

Growing at speed and scale

In February 2024, Keppel was appointed to design, build, own and operate Singapore’s largest single-site rooftop solar photovoltaic (PV) system at Changi Airport. When completed in early 2025, the solar PV system will have a total generation capacity of 43 Mega-Watt peak (MWp), and is expected to generate sufficient solar energy to power more than 10,000 four-room Housing Development Board flats yearly. Keppel will operate and maintain PV system for a period of 25 years. The PV system will also allow the Changi Airport Group to reduce its carbon emissions by approximately 20,000 tonnes each year, or about 10% of its consumption in 2019.

In June 2024, Keppel was awarded a contract by CapitaLand Investments to provide its cooling solutions to Raffles City Singapore over a 15-year period. With over 3.45 million square feet of gross floor area and an installed capacity of 10,000 RT, Raffles City Singapore will be the largest integrated development by gross floor area in Singapore and one of the largest in Southeast Asia to adopt the CaaS system to date.

Keppel is helping Changi Airport Group to deploy photovoltaic systems for Singapore’s largest single-site rooftop solar panel system.

More recently in July, Volt Singapore Pte Ltd (Volt), Keppel’s electric vehicle (EV) charging brand, awarded a contract by Setsco Services Pte Ltd (Setsco), to implement and operate Southeast Asia's largest public EV fast-charging hub at Jalan Papan in Singapore. Setsco will provide electrical infrastructure and facilities while Volt operates the fast-charging hub for up to 15 years. The hub will feature up to 80 direct-current (DC) charging points of 360kW and 120kW ratings, which will be installed in multiple phases to serve the general public, including electric buses, taxis, private hire cars, and other electric vehicles. When fully developed, the facility can support concurrent charging for up to 80 electric buses, with charging time for electric cars as fast as 10 minutes.

Volt will operate the largest public EV fast-charging hub at Jalan Papan in Singapore.

Keppel’s EaaS solutions are also quickly gaining acceptance in Asia with a growing presence in Vietnam, Thailand and China. In July 2024, Keppel was appointed by Perennial Holdings Private Limited to design, retrofit, manage and operate the existing cooling and heating systems of two of its flagship developments in Chengdu, Sichuan for a period of 10 years.

The two developments, Perennial Qingyang Mall and Perennial International Healthcare and Medical Hub Chengdu, will be retrofitted to provide high efficiency and reliable energy systems, with a combined cooling capacity under management of more than 11,000 RT. Keppel’s EaaS solutions are expected to achieve more than 20% in energy savings over their contracted periods and collectively abate more than 1,500 tonnes of carbon dioxide equivalent annually, which is equivalent to planting 150,000 new trees. The latest partnership comes on the back of the successful long-term EaaS implementation in Perennial Business City in Singapore and paves the way for further collaboration across Perennial’s portfolio in China.

Keppel’s EaaS solutions have been gaining acceptance in the region, extending its presence beyond Singapore, such as Perennial’s flagship assets in Chengdu.