{"id":1004267483,"date":"2018-09-26T22:15:09","date_gmt":"2018-09-27T06:15:09","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004267483"},"modified":"2022-12-09T01:48:39","modified_gmt":"2022-12-09T09:48:39","slug":"the-power-to-change","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-power-to-change\/","title":{"rendered":"The Power to Change"},"content":{"rendered":"

By Jeffrey Steele<\/p>\n

 <\/p>\n

\"\"The greater accessibility of battery storage is accommodating such increased use of alternative energy sources in commercial properties that they are rapidly becoming mainstream solutions. Jonathan Maxwell, CEO of London\u2019s Sustainable Development Capital LLP, likens anticipated adoption to that of LED lighting. Six years ago, the latter\u2019s global penetration rate stood under 2 percent. Today, the number is close to 33 percent, and it is expected to reach 80 percent by 2025. \u201cThat gives you a feeling for scale<\/em>,\u201d he said.<\/p>\n

READ THE DIGEST VERSION<\/a><\/p>\n

The push to make alternative energy mainstream is being driven by 75 percent declines in battery costs<\/a>, propelled by electric vehicle technology. Batteries key renewables\u2019 success, as the latter are intermittent energy sources and need to be stored for when wind doesn\u2019t blow and the sun doesn\u2019t shine. <\/p>\n

\u201cWe\u2019re seeing more building owners incorporating batteries to shave use of peak power, or integrating them into fuel cells or solar power to store energy<\/em>,\u201d observed Jason Smith, Atlanta-based senior designer with Stevens & Wilkinson Architecture, Engineering and Interior Design, who reported a cost decrease from $1,000 to $250 per kilowatt-hour. \u201cBatteries are integral parts of the future success of renewables. \u2026 You need backup to store power from those renewables<\/em>.\u201d<\/p>\n

\"\"<\/a>

Solar farm, courtesy: NRG Business Solutions<\/p><\/div>\n

Fuel cells and co-generation are also attracting more interest as storage solutions, noted Matt Eggers, vice president at Yardi Energy, as they use the heat and electricity from on-site generation.<\/p>\n

These advances make more attractive an energy source that is already appealing because of the degree of independence and control it affords to property owners and managers. \u201cCompanies that own commercial property or that are tenants in commercial property want to be more independent in their energy consumption<\/em>,\u201d noted Jeremy Macdonald, global energy and sustainability director for ISS Facility Services. \u201cThat way they can ensure their operations continue in the event of interruptions to the grid. Companies can feel they can be a little more predictable because they’re independent of any of those problems that could occur<\/em>.\u201d<\/p>\n

Eggers added that \u201cCRE leaders are seeing that massive change is coming in our energy grid and there will be new ways to make money for large consumers of power. Energy efficiency and load shifting, or moving consumption from one period to another, play a large role here.  People now see that they aren\u2019t just passive consumers of energy, and the utility costs are not fixed like taxes and interest expense<\/em>.\u201d<\/p>\n

The Right Choice<\/h2>\n

Preferences vary among alternate energy options. \u201cRenewables tend not to be one size fits all or silver bullet, (but instead) very regional or local,\u201d <\/em>noted Smith. He advised building owners to inventory their assets and consider local options. \u201cA building owner might find there\u2019s a large wind farm resource near the building. Another might find solar sourcing more appropriate<\/em>.\u201d<\/p>\n

Property owners seeking energy cost reduction<\/a>, improved energy security and lowered carbon emissions are increasingly exploring natural gas co-generation, according to Maxwell, whose firm invests in sustainable energy solutions for buildings and infrastructure.<\/p>\n

\"\"<\/a>

NRG Business Solutions installed solar panels at Skybox Datacenters’ Houston One center as part of a larger energy initiative.<\/p><\/div>\n

Natural gas co-generation erases a number of inefficiencies, because it eliminates transmission and distribution losses. Generating energy onsite also produces heat, which can be used on premises.<\/p>\n

This combined electrical and thermal energy usage delivers double the efficiency of taking electricity from the grid, he said. In addition, co-generation can run parallel to the grid, improving energy security.<\/p>\n

Maxwell believes solar to be the other alternative energy<\/a> source with the greatest potential. \u201cIt\u2019s possible to generate electricity on the ground or on rooftops,\u201d <\/em>he said. \u201cIt\u2019s quite competitive and attractive compared with retail electricity prices<\/em>.\u201d<\/p>\n

New options<\/h2>\n

But whether property owners choose natural gas fuel cell or solar technology as an alternative source could depend on how much square footage is available, Smith said. Corporate campuses with large parking lots could install solar panels over the lots. For those with less space, natural gas fuel cells would be preferred. Some 200 kilowatts of power can be generated by a fuel cell in 25 square feet, but a solar panel would only provide 20 kilowatts using the same space, he reported.<\/p>\n

However, property owners need no longer generate solar on their own property. \u201cThe way customers can buy solar has changed<\/em>,\u201d said Lynda Clemmons, vice president with Houston-based NRG Business Solutions, the commercial and industrial service arm of NRG Inc. \u201cTraditionally, you put panels on your building or needed a big area of land for that solar farm. Now there are ways commercial properties can buy solar without those options. They can buy renewable solar power directly from an array<\/em>.\u201d<\/p>\n

\u201cWe see significant interest in solar installed directly on buildings. And there is some interest in real estate companies signing direct power purchase agreements with utility-scale solar and wind farms as has been done in the corporate market for several years<\/em>,\u201d Eggers agreed.<\/p>\n

\"\"<\/a>

NRG Business Solutions installed backup generator at Skybox Datacenters’ Houston One center as part of a larger energy initiative.<\/p><\/div>\n

Meantime, at property management firm ISS Facility Services in San Antonio\u2014which services the manufacturing, pharmaceutical and IT industries\u2014global energy and sustainability director Jeremy Macdonald helps his company\u2019s clients achieve alternative energy milestones on the way to full renewable energy solutions.<\/p>\n

In India, he helped owners implement geothermal solutions in which cooler air is delivered from subterranean reaches to chill buildings. This solution is particularly fitting in a water-constrained country like India, where solutions not requiring water are valued. On the other hand, in Costa Rica\u2014which only uses renewable energy sources\u2014some 78 percent of energy is hydroelectric, 1 percent is solar and the remainder comes from wind, he reported.<\/p>\n

\u201cWhere you have solar, solar energy is further along. And where you have wind, that\u2019s further along<\/em>,\u201d Macdonald said, noting \u201cnatural advantages call for using one alternative source over another, based on both geography and weather patterns<\/em>.\u201d<\/p>\n

A decade out<\/h2>\n

In the not-too-distant future, property executives will enjoy a \u201cmuch greater awareness of where their energy comes from and how it is produced, and the desire to make choices about which energy provider and energy source they use<\/em>,\u201d Clemmons said.<\/p>\n

In fact, Smith likens energy management five to 10 years from now as being somewhat akin to day trading the market. It will be real time and adapt to changing situations in order to constantly manage energy flows around buildings and building districts.<\/p>\n

\u201cSo you\u2019ll see much more sharing of energy resources from building to building, across property lines, and much more sharing of power from distributed energy sources back to the grid<\/em>,\u201d Smith said. \u201cSources of energy will be much more diverse and nimble. I see buildings themselves becoming like batteries in a large smart grid of networks<\/em>.\u201d<\/p>\n

\u201cA sense of control and ownership will grow,\u201d<\/em> Eggers said. \u201cMegatrends in cloud computing and artificial intelligence are allowing buildings to use far less energy. Solar is becoming cheap but it is intermitment, so it demands a flexible grid. Building owners can be part of that solution and both do good and make more profit.\u201d<\/em><\/p>\n

Added Maxwell: \u201cEnergy is coming into town. \u2026 You’re going to see a huge increase in local, on-site decentralized energy generation. And you’re going to see a much higher penetration of energy-efficient technology<\/em>.\u201d<\/p>\n

Read the October 2018 issue of CPE.<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Alternative energy sources are increasingly becoming mainstream. Are you choosing the right ones for your property?<\/p>\n","protected":false},"author":450,"featured_media":1004267486,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1521,21786],"tags":[42197,42200,39134],"class_list":["post-1004267483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","category-sustainability","tag-jason-smith","tag-stevens-wilkinson","tag-yardi-energy"],"acf":[],"yoast_head":"\nThe Power to Change - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/the-power-to-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Power to Change\" \/>\n<meta property=\"og:description\" content=\"Alternative energy sources are increasingly becoming mainstream. 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