Posted by: Dave Gralnik
Energy & Sustainability Services
President Obama’s Power Plant Rule imposes greenhouse gas emission targets on utilities on a state-by-state basis.
While the target is fossil-fuel generating plants, the impact will reach owners of commercial real estate, and the opportunity could be a (sorry) windfall.
Of the many ways that utilities will respond, encouraging customers to use renewable energy on-site or through the growing trend toward “community solar gardens” that basically share renewable energy installations in a local area, will be a key strategy.
That means incredible incentives, as the utilities must shift generating capacity to alternate approaches. While utilities will probably build solar and wind farms, they will try to get their customers to do so, as well. And, the best way to do that is by making it economically attractive.
The other good news is that the cost of alternative energy is already falling – to the point that in 2013, for the first time ever, more of the new generating capacity added throughout the world was renewable than fossil-fuel based.
The trend to alternative energy for commercial real estate is already here, and the most forward-thinking owners are already jumping on the bandwagon.
The Obama Power Plant Rule is just going to accelerate the process, and few buildings will be left behind.
Interested in knowing how to take advantage? Contact JLL’s Dave Gralnik.