Nowadays, energy efficiency plays a significant role in the energy ecosystem, sustainable growth, and economic development of numerous companies. Many organizations have an appetite to implement energy efficiency projects, either to cut costs or improve their carbon footprint. Most of those organizations find difficult to get capital allocated to these projects due to cash constraints or competition from other frontline projects.
The company I work for addresses this problem by financing energy efficiency projects using a service model. Vivid Edge is an upcoming start up that obtains cutting edge equipment with greater energy efficiency, and it is also involved in increasing operational resilience, immediate cost savings, and reducing emissions. Our customers have no capital outlay and the combined payments for the new lower energy bill and the service charge for equipment are always lower than the original energy cost. We lease energy-efficiency equipment to large organizations, enabling them to save energy and cut costs. This includes refrigeration, air conditioning, heating, lighting, storage and control systems; any equipment that can reduce the absolute quantum of electricity an organization uses. Our customers experience immediate positive cash flow and carbon reduction benefits with no upfront spend. We target organizations that have an annual energy cost in excess of €1 million, and applies a variation of the proven aircraft leasing model to this new asset class, using global master agreements based in Ireland to aggregate smaller projects for companies with multiple installations, thereby minimizing administration costs and maximizing returns. With our service model, organizations who do not have a capital budget allocation for this purpose can still pursue energy efficiency projects.
Energy efficiency is a substantial global market annually that includes heating, cooling, control systems and other equipment, which reduces energy consumption. Vivid Edge’s ambition is to build as asset book of at least €1 billion in five years.