In March 2016, Edison International launched a new business providing energy consulting services to large energy users, including commercial buildings, data centers, retail, industrial, health care, and educational institutions. The business—called Edison Energy—will identify, develop, and integrate an array of energy solutions for the largest energy users nationwide.

Key Details

• Edison International spent more than a year, and leveraged sociology and anthropology expertise, to study corporate energy management
• A key finding was energy is a significant cost, but there is little agreement or understanding among customers on how best to take advantage of new systems and technologies
  • For example, customers may lack expertise in negotiating power purchase agreements, participating in demand response programs, or leveraging state or federal incentives
• Edison International is interested in helping create a market for Energy-as-a-Service, which they define as a comprehensive offering providing customers “access to reliable, sustainable, and affordable energy and energy management programs”
• The new business will be able to assess a customer’s energy strategy and provide the technical and engineering services needed to realize objectives
• Edison International has been building capabilities through strategic acquisitions in energy consulting; efficiency and engineering; energy procurement and data analytics; and renewable energy advisory and procurement
• Edison Energy will assist customers nationwide and operate separately from Edison International’s utility, Southern California Edison

Implications

Signaling a return to the utility energy service company model popular more than a decade ago, utilities are beginning to expand and promote their ability to serve as a strategic partner and trusted advisor on energy matters. In a similar move, Southern Company recently announced the acquisition of PowerSecure, a leading provider of distributed infrastructure to industrial, institutional, and commercial customers.

Additional Information

NY Times: Edison International Starts Energy Consultancy

Edison Internal: “The New Energy Future” Leads To New Edison Energy Business

GTM: Southern Company Goes Big Into Microgrids with $431M Acquisition of PowerSecure

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