Cooling as a Service (CaaS)

This case study describes the Cooling as a Service (CaaS) model, a pay-per-service approach designed to deploy energy-efficient cooling technologies by removing upfront investment costs for customers and incentivizing providers to maintain high efficiency.

• Cooling as a Service (CaaS) utilizes a pay-per-service model where customers pay for the cooling they consume rather than investing in the technology upfront. The service provider or financier maintains ownership of the equipment and pays utility bills, which incentivizes the use of the most energy-efficient technology.
• The CaaS model can be scaled through a sale-leaseback arrangement with commercial banks, where the bank purchases the equipment and leases it back to the provider to unlock necessary capital.
• In Nigeria, the social enterprise ColdHubs applies the CaaS model by operating solar-powered walk-in cold rooms in outdoor markets and produce aggregation centers. Farmers and retailers pay a fixed daily price per 20kg crate to store goods, while ColdHubs retains ownership of the assets.
• Successful implementation of CaaS requires several enabling factors: a clear cooling contract defining roles, a functioning legal and regulatory framework to enforce contracts, national energy efficiency policies, and the participation of local commercial banks and Development Finance Institutions (DFIs).
• The SADC Center for Renewable Energy and Energy Efficiency (SACREEE) launched the Industrial Energy Efficiency Program (SIEEP) for 2018-2023, which includes seed funding, project pipeline creation, and banker training, making participating countries potential candidates for CaaS.

APA

Climate Policy Initiative (2021). Cooling as a Service (CaaS). https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/cooling-as-a-service-caas-2/

Chicago

Climate Policy Initiative. Cooling as a Service (CaaS). 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/cooling-as-a-service-caas-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Cooling as a Service (CaaS) |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/cooling-as-a-service-caas-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021cooling, author = {{Climate Policy Initiative}}, title = {{Cooling as a Service (CaaS)}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/cooling-as-a-service-caas-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }