Cooling-as-a-Service: A paradigm shift in HVAC & R By Eamonn Ryan Dawie Kriel, general manager of Energy Partners Refrigeration, presented at FRIGAIR 2025, offering insights into the‘ Cooling-as-a-Service’( CaaS) model.
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Cooling-as-a-Service: A paradigm shift in HVAC & R By Eamonn Ryan Dawie Kriel, general manager of Energy Partners Refrigeration, presented at FRIGAIR 2025, offering insights into the‘ Cooling-as-a-Service’( CaaS) model.
INTRODUCING THE MODEL
His presentation highlighted a significant shift within the HVAC & R industry, moving from traditional transactional engagements to a more comprehensive, solution-based approach. Energy Partners, a pioneer in this space, currently manages substantial refrigeration assets and has successfully implemented Cooling-as-a-Service tailored to specific customer needs. Their asset management division, leveraging extensive data, forms the backbone of their offering, with strong financial backing underscoring confidence in this model.
Kriel emphasised that Energy Partners was among the first globally to launch CaaS specifically for as-built facilities, differentiating it from district cooling solutions.
WHAT IS COOLING-AS-A- SERVICE( CAAS)?
At its core, CaaS represents a fundamental shift from selling products to selling outcomes. In a traditional transactional model, the end-user bears the brunt of the cooling system ' s capex, operational costs, maintenance, electricity consumption and post-warranty repairs. Kriel summarised the limitations of a standard warranty, stating:
“ Traditional warranties acknowledge that equipment will eventually require maintenance or experience faults. Our responsibility for these costs is typically limited to the initial warranty period.”
Under the servitisation model, Energy Partners assumes these responsibilities. They carry the capex risk, operational costs and maintenance expenses, offering customers extensive 15- to 20- year warranties on their plants. Critically, Energy Partners also covers the electricity consumption of the plant, meaning the customer solely pays for the cooling consumed. This model echoes successful servitisation examples across various industries, such as Rolls-Royce ' s ' power by the hour ' for aircraft engines.
LIFECYCLE COSTS: THE CASE FOR SERVITISATION
Kriel underscored the economic rationale behind CaaS by examining the true lifecycle cost of a cooling system. Over a typical 15- to 30-year lifespan:
• Capex accounts for only approximately 20 % of the total cost
• Service and maintenance represent about 15 %
• Electricity consumption makes up a significant 65 %
Traditional models often incentivise customers to opt for lower capex solutions, even if they are less energy-efficient, due to an upfront cost focus. This overlooks the substantial long-term savings achievable through more efficient, albeit initially more expensive, plants.
The servitisation model directly addresses this disconnect. By taking on the capex and operational risks, Energy Partners can install more energy-efficient plants, ensuring that the savings in electricity costs are realised from day one by the customer. The customer ' s cost of cooling is inherently lower from the outset.
COMBATTING EFFICIENCY LOSS OVER TIME
A critical risk in the industry that Energy Partners mitigates is the natural decrease in cooling efficiency over time. Kriel noted that refrigeration systems typically experience an efficiency degradation of between 1.5 % and 3 % per year. This gradual decline can lead to operational costs increasing by as much as 100 % over 10 – 15 years.
Through its servitisation model, Energy Partners leverages advanced data analytics, machine learning and digital twins to optimise system performance, guaranteeing a remarkable 99.3 % uptime and absorbing the risks associated with declining efficiency. CaaS contracts typically span 10 – 20 years, with tariffs structured to cover capital, service and electricity costs, providing customers with predictable and optimised cooling solutions.
ADDRESSING THE SKILLS GAP IN HVAC & R
Another critical challenge facing the HVAC & R industry globally is a severe skills shortage. There ' s a growing preference among younger generations for computerbased work over hands-on technical roles, exacerbating the scarcity of skilled technicians capable of performing essential maintenance and repairs.
GUARANTEED PERFORMANCE AND SUSTAINABILITY FOCUS
“ We guarantee a 99.3 % uptime for our plants, a commitment legally enshrined in our contracts,” says Kriel.“ Beyond operational reliability, compliance with regulatory standards is paramount, as noncompliant systems risk shutdown. From an environmental perspective, we are strongly committed to natural refrigerants, believing they offer a responsible and viable path forward for almost all applications.”
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COLD LINK AFRICA www. coldlinkafrica. co. za March / April 2026