Servitization of demand-side energy services: Perspective and insights from energy service providers

The objective of this work is to examine the various aspects related to the market implementation of emerging demand-side servitized energy services. To provide context, the motivations, benefits, risks, and technical challenges related to energy service servitization are analyzed in detail from the perspective of energy service providers. The underlying research question addressed in this study is: what are the key drivers, mechanisms, and outcomes influencing the transition of energy service companies towards servitization, also known as as-a-service (AaS) business models for demand-side energy services. Previous studies on this topic have focused primarily on the conceptual scoping of servitization business models. Consequently, there is a lack of clarity on the market implementation of servitized energy services from the earlier studies. In this regard, feedback from the market players is important to perceive the motivations, benefits, challenges, and risks associated with market-ready as-a-service offers. To this end, this work proposes a methodology that combines desk research, surveys, and semi-structured interviews. Furthermore, the data collected from the interviews are analyzed using the software tool MAXQDA and exploratory data analysis. The combination of data from desk research, surveys, and interviews has provided detailed insights into servitized demand-side energy services (DSES). Findings reveal that transparency in the service value-chain is a prime benefit for companies with servitization offers. It also helps them build long-term trust with end-consumers by sharing valuable data-driven insights. Conversely, regulatory and market risks are cited as major concerns. Notably, on the regulation side, the study identifies barriers that need to be addressed by policymakers in the near future. Finally, the study provides evidence-based recommendations for scaling the servitization business model and addressing the challenges based on new findings from the case study of demand-side energy services. • The study explores servitized business models for demand-side energy services. • Feedback was gathered from companies via desk research, surveys, and interviews. • Transparency, sustainability, and circular economy drive servitization model adoption benefits. • Regulatory and market risks challenge as-a-service models, needing policy action.