Unlock the Potential of Mobile Energy-as-a-Service With Software-Defined Power Infrastructure
We live in a world of Anything-as-a-Service, so it’s no surprise that the XaaS model has come to the energy and climate tech sector. The convergence of demand and technological innovation will make energy-as-a-service (EaaS) a win-win-win business model not only for energy buyers and sellers (i.e., pretty much every person in the developed world) but also for the larger sustainability conversation.
But there are strings attached — literally. Today’s EaaS conversions only focus on grid-tied solutions. While these technologies are critical, the next wave of innovation will involve mobile, portable, flexible, and re-deployable solutions. These include smartphones, electric cars and fleets, IoT devices, e-scooters, power tools, medical devices, and more.
Here’s a closer look at mobile EaaS and how the convergence of technology has made it viable at scale.
What is Energy-as-a-Service?
The XaaS is a solution delivery model combining hardware, software, and services. Instead of buying the equipment and software licenses upfront, users access the solution by paying a subscription fee, which covers the cost of maintenance and upgrades for as long as they’re customers.
An EaaS vendor provides the equipment (e.g., smart meters, battery storage,) software, energy management services, and electricity for a flat fee. It’s also responsible for maintaining and upgrading the hardware and software to optimize energy savings.
The EaaS business model captures the value associated with energy efficiency improvements. It helps reduce our carbon footprint while deflecting the high upfront cost of the equipment and technologies required to turn many decarbonization theories into reality.
Mobile EaaS vs. The traditional power delivery model
How does EaaS different from how we have been using electricity — you plug an espresso machine into an outlet and get fancy coffee without worrying about how the energy was produced and transported or what infrastructure is required to make it happen?
This as-a-service model only applies to electricity generated from conventional power plants (mostly burning fossil fuels.) Since the power supplier makes more money when people use more electricity, there’s no incentive for them to improve energy efficiency. Meanwhile, consumers don’t have the resources to implement advanced technologies to reduce usage.
Also, the traditional power delivery model is tied to the grid — and the wall socket. Electric car owners understand the constraints all too well. They pay (tens) of thousands of dollars to buy an over-dimensioned EV battery pack with the capacity they almost never need for their daily commute and Starbucks run, just so they can make “that epic road trip” someday.
What if we can make an EV go any distance without range anxiety by making power available as-a-service without lengthy charge time?
Mobile EaaS can help us reap the benefits of the XaaS model in the energy sector. It can make the electrification of equipment and machinery in the field, on a factory floor, in a hospital, on the road, or in the sky as simple as plugging in a new espresso machine.
The convergence of technologies makes mobile EaaS viable (and how to further improve its efficiency)
EaaS providers use various technologies to manage the complex power market and support the following key elements:
1. Distributed power generation from renewable sources
There’s a surge of investment in distributed energy resources (DER), which generates power closer to the point of consumption — typically using renewable sources such as solar, wind, hydro, biomass, waste-to-energy, fuel cells, and geothermal.
Since these power generation solutions are typically small-scale and modular, they’re more flexible and less costly to set up than large-scale, centralized power plants. They’re also more agile in adapting to shifting demand and technological innovation.
However, these systems' complexity and reliance on intermittent renewables are harder to manage with traditional, hardware-heavy methods designed for centralized power generation. A professional at a job site may care where the electricity that powers their drill comes from. But at the end of the day, what matters is that the drill turns when they need it to.
To convince users to switch from a fossil fuel-powered source to a battery-powered one using electricity from renewable (and possibly intermittent) sources, we must ensure that the power is available whenever and wherever it’s needed. The mobile EaaS business model can only take off if it meets all the requirements that matter to the users — including reliability.
As such, we need flexible and adaptable technologies, such as software-defined batteries (SDBs) to increase the resiliency and reliability of edge power generation and storage solutions so they can be implemented at scale.
2. Real-time synchronization for minute-to-minute optimization
Using connected technologies, EaaS vendors can integrate activities, platforms, and facilities to improve cost efficiency and support new power delivery methods. For instance, they can collect detailed data in real-time from connected devices to optimize operations throughout the power generation and delivery chain.
In fact, Deloitte considers the smart grid transformation a massive IT project in which advanced communication and distribution technologies will play an increasingly prominent role.
These include private LTE and 5G, artificial intelligence and machine learning capabilities, remote cloud management, asset performance management software, robotics and visualization technologies, cybersecurity solutions, and edge capabilities such as bi-directional connectors for energy and information, data storage, and computing.
To leverage the agility that underlies the benefits of EaaS, we must free our systems from the constraints of hardware and move toward software-defined infrastructure and equipment. It will allow operators to gain the flexibility and scalability required to adapt to shifting conditions and optimize efficiency.
When providing power to critical applications, vendors must keep track of what’s happening within the entire ecosystem minute-to-minute. In fact, the concept of mobile EaaS is only possible if we can support it with smart asset management principles, advanced analytics capabilities, and data security measures.
3. Large-scale stationary storage for reliability
Stationary storage is an essential component in EaaS and distributed power generation solutions. In particular, cost-efficient storage solutions can alleviate challenges that involve load variability and grid instability associated with distributed renewable sources.
Large-scale storage solutions offer load-leveling and frequency regulation while allowing for voltage support and price arbitrage. Thanks to technological improvements and economies of scale, stationary storage is becoming increasingly economically feasible.
However, stationary storage isn’t without its challenges. For example, most of today’s solutions are designed for lithium-ion batteries, which aren't optimal for storage. While new battery chemistries are being developed, switching to new equipment can make adoption a lengthy and costly process.
SDBs can make many hardware-related challenges things of the past. For instance, by being able to mix and match batteries of any age and chemistry, operators can replace just-in-case replacement with just-in-time maintenance to maximize efficiency and reduce wastage without impacting reliability.
The technology can also dramatically extend the useful life of battery cells and provide the serviceability required for improved operational efficiency. Additionally, switching to new battery chemistries can be a gradual process of replacing used cells with new ones during routine maintenance activities instead of purchasing expensive new hardware for a complete overhaul and discarding perfectly usable cells during the process.
4. Big data and analytics provide visibility
Real-time data flow and advanced analytics allow participants in the ecosystem to understand patterns, predict outcomes, and maximize energy efficiency. For example, providers can use weather information to forecast solar and wind power generation. Meanwhile, users can choose to use power from renewable sources or buy and store energy when the rate is low.
While most of the technologies in the EaaS space focus on devices (e.g., smart meters) used throughout the power generation and distribution process to maximize efficiency, let’s not forget the infrastructure that makes all of that possible.
Stationary storage facilities discard numerous battery packs containing cells that still have a lot of useful life left. They can’t optimize these expensive assets because they don’t have the granular data to identify and isolate individual cells that are failing. But as mentioned above, just-in-case replacement creates a lot of wastage.
SDBs allow EaaS providers to increase operational efficiency and reduce their environmental footprint by optimizing asset management.
The Tanktwo Battery Operating System (TBOS) offers predictive analytics that allows operators to know which cell is likely to fail and when so they can schedule just-in-time replacement without compromising reliability. Meanwhile, the modularity and ability to mix and match cells mean operators only need to replace failed cells instead of tossing out entire battery packs.
Real-time data insights and connectivity also help eliminate market inefficiency and increase transparency so on-demand power delivery makes economic sense for every party involved. It’s like ride-sharing: Uber uses analytics to make it feasible — and appealing — to get transportation on-demand instead of owning a vehicle.
The future of EaaS: A software-defined grid
As the International Renewable Energy Agency (IRENA) observes, digitalization of the power system is essential for reaping the benefits of the EaaS model. It will help unlock many opportunities by providing the flexibility unmatched by hardware-focused solutions — e.g., the emergence of other XaaS (e.g., battery-as-a-service) models to support the ecosystem.
As observed by Deloitte, the next wave of power distribution and management is an IT undertaking — we need communication infrastructure and data analytics to realize the potential and promises of green tech innovations.
Using software-defined technologies, EaaS providers can deploy assets (e.g., solar PV, battery storage system, smart devices) to optimize energy consumption, reduce grid congestion, and deliver responsive demand services to make using renewable energy sources at scale viable.
