Five companies were selected into the CaaS Incubator program, an initiative that seeks to promote the concept of cooling as a service (CaaS).
The CaaS initiative aims to decrease energy consumption and greenhouse gas emissions (GHG) from cooling use through a pay-per-service model for more efficient cooling systems.
The winning projects offer highly efficient air conditioning or refrigeration solutions using low-global-warming potential or natural refrigerants. The participants are now working towards offering the CaaS business model to their customers
The initiative is led by the Basel Agency for Sustainable Energy (BASE), along with the Kigali Cooling Efficiency Program (K-CEP), and with the endorsement of the Global Innovation Lab for Climate Finance.
“CaaS is a promising financial instrument that works to overcome key market barriers to clean and efficient cooling, without upfront investment, with integrated financial tools to recapitalise technology providers,” says BASE Managing Director Daniel Magallón.
Selected out of 35 applications from 18 countries, the five incubator companies are receiving free technical assistance from BASE to integrate CaaS into their business lines and to pilot the model.
This includes assistance on technical, legal and financial aspects, including contractual arrangements, pricing strategy, financial structuring and risk mitigation mechanisms.
“Potential projects have been identified, and BASE has been involved in several meetings with potential customers and with implementing partners to explain the characteristics and benefits of the CaaS model. In addition, the selected companies and BASE have been working on a pricing model for the respective projects,” says Sustainable Energy Finance Specialist at BASE, Thomas Motmans.
The aim is for providers to be fully equipped to launch their first demonstration project by the end of the incubator program.
“The question of when the first CaaS projects will be launched depends on a number of factors, and the current COVID-19 situation is adding additional uncertainties. We are aiming to have first CaaS contracts signed at the end of this summer,” says Motmans.
The five technology providers selected to pilot the innovative business model are: BGH (Argentina), CoolCrop (India), CoolingTech (Grenada), GrupoClima (Costa Rica), and KoolBoks (Nigeria).
BASE is a not-for-profit Swiss foundation and a specialised partner of UN Environment founded in 2001. Around the world, BASE designs, develops and implements innovative financial mechanisms and business models to catalyse investments towards sustainable energy and to meet the challenge of climate change.
For more information about CaaS, click here.