Blog post: “Why would I buy energy as a service when we do fine with our current model?”
When discussing companies’ energy matters, we often come up against even false claims and assumptions about adopting energy solutions. We frequently hear, “We’re doing just fine” and “We want to produce our energy ourselves” in the conversations. Does that sound familiar? Perhaps you have said the same at some point? We have compiled a few perspectives on the most common claims that we hear in the discussions!
Claim 1: “We’re doing just fine”
Or is it that the current energy solution is familiar and safe and thinking about new options is too much work? Or are people simply settling for a situation that is good, even though things could be better? A lack of time and other resources may be preventing companies from considering new solutions or development measures.
So, what is the benefit of having an outside perspective? Adven has implemented more than 500 different energy solutions for its partners over the past 35 years. We believe that we have helped our customers find even better energy solutions by bringing in new perspectives. We are able to merge our extensive knowledge of the diverse solutions that have been used in different energy projects. In addition, we delve into the customer’s entire process and situation, from the perspectives of energy, water consumption and energy efficiency. Armed with these, we believe that we can bring something new and significant to our customers, whatever their situation.
We will go over your current situation together with you and offer our insight into how your energy matters could be developed. With our comprehensive assessment, we can find the development areas that will bring your company environmentally sound and financial added value.
Claim 2: "Show me the money"
In all development activities, careful attention must always be paid to the financial impacts on the various parties. We act as an investor in our customers’ energy projects and we guarantee that the financial impacts are realized as agreed. There is no need to fear a dramatic increase in costs, because the financial responsibility for the investment lies with us.
We fulfil our customers’ needs by investing several million euros of our own money to support our customers’ business. This means that each and every energy solution that we implement is thoroughly analyzed and planned jointly with the customer. Every solution must be based on solid grounds that both parties have committed to. At the heart of our operations is making the impacts of our energy solutions concrete. We clearly present the reasons why we want to invest money in a new solution, as well as the benefits it will bring to our customers compared to their current situation.
For us, customer relations does not mean coming up with quick general reports on what should be done. After comprehensively mapping out the situation, we also want to implement the presented proposals and see their actual impacts. We build partnerships. We are on the same page as you and we resolve your operational challenges together with you. For customers, Adven is both an investor and an enabler of benefits.
Claim 3: “We already have a leasing agreement”
Leasing has been a common way of implementing different kinds of large-scale investment projects. We have, however, wanted to take our business model to a deeper partnership level. We are not a financial institution, but instead investors, which means we also bear the financial liability for projects and are a long-term partner to our customers.
In choosing Adven’s service, you also gain a major advantage in that we assume full financial responsibility. Our service agreement can be built such that it is an investment that is considered by our clients to be off their balance sheets (under US GAAP and IFRS accounting regulations).
As your partner, we also bear responsibility for the potential relocation and re-use of the plant, if you do not wish to continue using the plant later. This means the investment also has value after the agreement period, contrary to a leasing arrangement if the contract is cancelled before the agreement period ends and the customer has to buy the plant.
Claim 4: “We want to do it ourselves”
Many companies want to produce their energy themselves, and that’s OK. When resources are limited, or the aim is to make more efficient use of them, there are quite strong grounds to take advantage of a service provider with special expertise.
We target our expertise to help our customers with energy- and water-intensive operations. We offer you the resources that your company might not have right now. Some examples of this are heat recovery, efficient wastewater treatment or local biogas production.
We are also confident that partnership with us brings our customers more than it takes away. We want to be there to see how your company’s operations develop and to see you reap the financial rewards. But the best thing about it is that we are creating efficient and environmentally friendly operations at the same time. Whether it’s reducing the water or carbon footprint or microplastics, we are working together towards a better and more environmentally friendly future.
The writer, Leo Toivonen, is a Sales Manager at Adven. He wants to put an end to the preconceptions related to purchasing energy as a service.