Lower costs and improved technology are creating a promising environment for building operators to work with power producers to reduce their grid exposure, says David Streier of Fredrikson & Byron.
What Happened
The maturation of on-site energy and storage technology presents a significant opportunity for building operators. David Streier, a shareholder at Fredrikson & Byron, highlights how advancements in power generation and storage have made these technologies more accessible and economically viable for facilities. Over the past few years, the cost of implementing on-site power systems has significantly decreased, making it a more attractive investment for companies. Streier notes that the bids from contractors for adding power or storage have dropped since he began working in the field 15 years ago. This cost reduction is largely due to state and federal incentives that have accelerated the manufacturing of renewable energy technologies and energy storage solutions.
Despite some federal tax credits phasing out, the long-term trajectory for renewable energy technology remains strong. Independent power producers continue to develop projects, providing opportunities for building operators to reduce their reliance on the traditional power grid. Streier emphasizes that many facilities now incorporate on-site generation and storage into their business strategies, driven by sustainability goals and competitive pressures.
What This Means for Your Business
For businesses in the architecture, engineering, construction, and manufacturing (AECM) sectors, the maturation of on-site energy solutions can mean substantial long-term savings and a competitive edge. Cost reductions in on-site power and storage systems allow building operators to incorporate these technologies into new constructions or renovations as a line-item expense with a clear return on investment. By integrating these systems, companies can achieve energy savings over time and enhance their sustainability credentials.
Furthermore, the evolving landscape of energy storage technology provides companies with a broader array of options. While lithium-ion remains dominant, innovations in long-duration iron-air batteries and thermal storage technologies, such as graphite blocks, offer new possibilities for efficient energy management.
What US Operators Should Watch
US operators should monitor the development of federal and state incentives related to renewable energy projects, as these can impact the financial feasibility of on-site energy investments. Additionally, staying informed about advancements in battery storage technologies will be crucial for making informed decisions about energy management strategies. As federal investment and production tax credits phase out, businesses must evaluate how these changes affect their energy projects and seek partnerships with power companies that can provide innovative solutions to meet their needs.
Source: https://www.facilitiesdive.com/news/facilities-could-benefit-as-on-site-energy-matures-attorney-says/833098/. Read the original story ->
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