Abu Dhabi-based Mubadala Investment Company and France-headquartered technology firm Schneider Electric plan to work together in several areas, including the provision of energy as a service (EAAS) globally, as well as manufacturing opportunities in the UAE.

As a new business model, EAAS is expected to optimise energy costs through “long-term, fixed-priced subscription-based electricity services” that can include energy management services.

The model offers the potential to eliminate capital outlay when updating or upgrading infrastructure and enable customers to have better visibility of their budget, in addition to improving operational efficiencies.

The firms signed a memorandum of understanding (MoU) on 20 January and indicated that they plan to explore multifaceted collaboration across a number of business opportunities, including EAAS in Europe, the Middle East, Africa and elsewhere globally, as well as manufacturing opportunities in the UAE

The MoU entails pursuing development of education and research initiatives with leading academic institutions in Abu Dhabi, and exploring additional areas for collaboration in the areas of clean energy and sustainability.

CEO of UAE Investments at Mubadala Investment Company, Musabbeh al-Kaabi, said the agreement “is an important development in Mubadala’s strategy of advancing the development, commercialisation and deployment of clean energy solutions and innovative technologies globally”.

It also adds to Abu Dhabi’s position as a global centre of excellence in the sector, he said.