Request for information: Understanding barriers and innovation opportunities in as-a-service business models for transportation, batteries and buildings

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Status: Thank you for your feedback. As of October 31, 2025, this Request for Information is now closed. We are reviewing what we heard.

This request for information (RFI) seeks to better understand the perceived potential and current barriers to:

  • the adoption of energy and infrastructure provision through as-a-service business models in Canada
  • innovation opportunities that could support the advancement of this business model

The scope of the information request includes:

  • energy-as-a-service (EaaS) for buildings
  • charging-as-a-service (CaaS)
  • batteries-as-a-service (BaaS)

Context

Efforts to improve affordability while accelerating infrastructure development may benefit not only from technological advancement but also innovative approaches to financing and deployment. One such approach gaining traction globally is the as-a-service model for energy provision. In particular, its potential application in buildings, electric vehicle (EV) charging, and batteries.

Cost reduction strategy

Historically, efforts to advance energy technologies have focused on reducing their unit costs. This has yielded significant progress, especially in solar, wind, and battery technologies. However, despite these cost reductions, affordability remains a barrier for many end-users due to:

  • upfront capital requirements
  • complicated ownership responsibilities
  • sufficiently delayed payback periods

These factors continue to deter widespread adoption, particularly in sectors like building electrification and EV infrastructure.

The as-a-service model: A new approach

The as-a-service model offers a potential complement to historical approaches to advancing energy. Rather than purchasing and managing energy assets outright, customers subscribe to services provided by specialized companies. These service providers handle:

  • planning and finance
  • installation and maintenance
  • eventual renewal of assets

Often delivered under performance-based contracts, this model shifts risk and complexity away from the user, enabling access to advanced energy solutions without the drawbacks of ownership.

Global trends

This model is already well established in the software industry and is now gaining momentum in the energy sector. Globally, energy-as-a-service (EaaS) offerings are expanding across commercial real estate, infrastructure, and fleet electrification. In these arrangements, customers pay for outcomes—such as energy savings, carbon reductions, or charging availability—rather than for the equipment itself.

Ontario has seen some early success, particularly in commercial and institutional sectors. In Canada, however, adoption has been uneven.

Risks and challenges

There are systemic risks related to the model, but it is not clear which ones pose the greatest barrier to firms experimenting with them. The collection of data by third-party providers raises concerns about privacy, as well as energy security. When services are controlled remotely, there is a risk of creating dependencies between nations. The technical expertise required to operate these businesses, combined with the interconnected nature of technological ecosystems, might lead to the eventual emergence of market monopolies or duopolies. Additionally, there is a risk of sudden service cessation, particularly for clients with lower incomes who may struggle to make payments, as well as in sectors facing economic volatility.

Opportunities for innovation

These challenges may benefit from technological and social innovation.

Technology innovations to enhance the reliability and transparency of service-based offerings:

  • blockchain-based payments systems
  • smart charging platforms
  • artificial intelligence-driven energy management

Social innovation to unlock the potential of service models:

  • trust building platforms
  • cross-sector collaboration hubs

District energy systems

The approach has not yet been widely applied to district energy systems, which provide centralized heating and cooling to multiple buildings. Traditionally, these systems have relied on long-term infrastructure investments and fixed contracts.

While some emerging examples of flexible, service-oriented district energy models exist, they are not as prevalent or developed as those in the charging and battery sectors. As markets evolve and the demand for sustainable energy solutions increases, there may be greater opportunities for district energy systems to adopt servitized models.

Contact us

Respondents with questions regarding this RFI may direct their enquiries to: eiptransport-pietransports@nrcan-rncan.gc.ca.

Disclaimer

Please note this is solely a request for information and does not represent formal consultation for a current or future funding opportunity. NRCan is not obligated to respond directly or indirectly to any of the issues submitted under an RFI.

NRCan will not reimburse any respondent for expenses incurred in responding. Respondents will have no claim for damages, compensation, loss of profit, or allowance arising out of providing comments in response to the RFI.

Please do not include any information you consider proprietary or confidential. NRCan will handle the responses in accordance with the Access to Information Act.

Responses may be shared with other departments within the Government of Canada unless the respondent specifically indicates otherwise.

NRCan may, at its discretion, contact any respondents to follow up with additional questions or for clarification of any aspect of a response.