In a move that shows recognition of value in the “energy-as-a-service” approach, one of the largest utility holding companies in the U.S. has launched new, nonutility business focused on meeting the needs of large commercial and industrial energy users.
California-based Edison International said March 29 that its new subsidiary, Edison Energy, will be an independent advisory and services company that intends to work with large energy users “to identify and execute opportunities to help them lower costs in managing their entire energy portfolio,” and deliver on sustainability objectives.
“Large energy users increasingly need a strategic partner to help them navigate through the diverse energy marketplace,” Edison International Chairman and CEO Ted Craver said in a news release. “Edison Energy will provide the expertise that will enable large commercial and industrial energy users to explore the many options available to them and to select the best portfolio of alternatives to power their operations.”
In concert with the announcement, Edison International also released findings of a study it conducted into the future energy needs of large businesses, which found that
The research, outlined in a new white paper, highlights the challenges facing large energy users, including increasing complexity and cost, greater volatility, multiple regulatory jurisdictions, rapidly evolving technology choices and increasing environmental concerns, Edison International said. Other key findings of the report were that 25% of companies surveyed do not have an accurate overview of their total energy spend; and more than 40% of companies listed the lack of a credible partner as a major barrier to making new investments in energy.
SED’s take: Kudos to Edison International for demonstrating innovative leadership in evolving their business model. We believe others will follow, creating ripple effects in all areas of the C&I energy market. Stay tuned as we report on Smart Energy Decisions made by utilities to serve the C&I market.