INCORPORATING COLD CHAIN
CONTRIBUTORS operational risk , energy efficiency and sustainable business .
SERVITISATION OVERVIEW
Servitisation fundamentally redefines the relationship between suppliers and customers by offering outcomes rather than products . Under the CaaS model , customers enter into partnerships where suppliers own and operate cooling or heating systems , assuming all associated risks and responsibilities during the life cycle of the system . Customers do not need to make a large initial investment , but , for example , pay a fixed rate per kW of cooling capacity . This rate includes maintenance and repairs – the supplier guarantees availability and may even have to pay penalty fees for any downtime . Such a shift from ownership to usership represents a paradigmatic change and inherently leads to reduced life cycle costs , enhanced operational efficiency and a focus on sustainable practices .
IMPACT OF COOLING AS A SERVICE
CaaS is primarily a risk transfer product and not merely a tool to finance equipment . It is driven by operational efficiency , which ensures the lowest life cycle cost and unlocks profitability for both supplier and end user , while ensuring environmental sustainability . By transferring operational risks to suppliers , customers can focus on core activities , while suppliers ensure optimal system performance , uptime and compliance . Moreover , the CaaS income model incentivises the supplier to ensure efficiency improvements , reduces energy consumption , and promotes the adoption of sustainable technologies . Thus , with improved temperature compliance , product quality is improved , leading to increased profitability for both customer and supplier .
ENABLING INNOVATION
With energy efficiency a key competitive advantage in CaaS , suppliers are driven to lead in technological innovation and smart energy asset management . They manage the complex challenges of addressing diverse equipment needs , ensuring compatibility , and meeting stringent regulatory requirements . Suppliers are prompted to enhance their service through comprehensive data management , real-time performance monitoring , and centralised asset management . Because they have commissioned the system and continuously collect operating data , they can advise customers on how to further improve efficiency or reduce energy waste . At the same time , such a stringent customerfocused approach limits their own investment risk , because they have much to lose if the customer gets into financial difficulties .
ENVIRONMENTAL IMPERATIVE
The environmental impact of traditional refrigeration systems underscores the urgency for more sustainable solutions . CaaS addresses this imperative by prioritising efficiency improvements and the adoption of natural refrigerants : not only do they comply with all legal regulations , but they are the most cost-effective for the foreseeable future . With its highquality data , CaaS also aligns with ESG
reporting requirements , enhancing the environmental credentials of customer companies and contributing to the broader goal of sustainable development . CaaS is therefore a winwin-win situation : for the customer , the supplier and the environment .
CaaS IN AFRICA
Africa offers good examples of the benefits of CaaS : the continent faces unique challenges in electricity supply , cold chain infrastructure and food security . With CaaS , even small companies and projects can invest in cold rooms , storage and transport , and are less affected by power outages . Food and other perishable items stay fresh for a much longer time , which reduces postharvest losses , waste of energy and land , and promotes economic development . By providing efficient and affordable cooling solutions , CaaS has the potential to transform the agricultural sector and improve livelihoods across the continent ( Image 3 ). It is however just as relevant in developed countries with the need for increased sustainability .
CASE STUDY : CLOVER SA
The adoption of CaaS at Clover SA , one of South Africa ’ s largest dairy processors , serves as a compelling example of the transformative impact of servitisation models . Energy Partners provided a 10 MW two-stage ammonia cooling plant with a 1.6 MW solar power system for the factory in Queensburgh ( Image 4 ). It achieved 40 % cost savings , improved efficiency , and reduced carbon emissions through heat recovery and the use of solar power . It is now the first fully servitised refrigeration , steam and power plant , highlighting the potential of CaaS to drive sustainable growth and innovation in the dairy industry and setting a precedent for other companies to follow .
FINANCIAL PERSPECTIVE AND FUTURE OUTLOOK
Financial institutions play a crucial role in facilitating the adoption of CaaS by providing innovative financing solutions . Investors are looking for investments in viable energy sector projects , and CaaS provides reliable returns in sustainable technology . As the industry continues to evolve , the integration of heat pump technologies and continued collaboration between stakeholders will further enhance the value proposition of CaaS , driving sustainable growth and innovation .
The shift towards Cooling as a Service represents a transformative opportunity for the refrigeration and heat pump industry . The combination of heating and cooling as well as , possibly , power generation will provide still new opportunities . By embracing servitisation models , stakeholders can unlock new avenues for efficiency , sustainability and shared success . As we navigate this paradigm shift , let us seize the opportunity to build a more resilient , innovative and sustainable future for all , harnessing the power of CaaS to drive positive change on a global scale . CLA
COLD LINK AFRICA • September 2024 www . coldlinkafrica . co . za 27