Microgrids can deliver dependable, local, economically salable clean energy. Microgrids are decentralized energy systems that operate with traditional grid-based utilities, and if required, could power a campus, a neighborhood, or a small region independent of the primary grid.

For real estate owners and/or local apartment or office park developers, microgrids carry the potential to reduce energy costs while improving dependability and allowing rental premiums to take place in certain scenarios. The following would be some of the ways in which that would be possible:

  • Clean Energy Production: Hand in hand with California’s energy reduction goals, microgrids would represent a point of consolidation for clean energy efforts to come to fruition. Microgrids would facilitate meeting clean energy goals by providing the flexibility to receive energy from clean sources, and even leveraging from the recent mandates to have solar energy production in all low-rise residential projects. In other words, the city itself could be part of the microgrid. Through this, site owners could participate in financial incentives that would justify having (or not having) certain energy features in buildings.
  • Environmental and Economic Resiliency: In a macro scale, microgrids point towards the alleviation of environmental and economic impacts derived from old infrastructure. Fire hazards, expensive repairs and upgrades, are amongst the issues that could be reduced by the operation of microgrids.
  • Better Distribution: Microgrids, as being closer to the point of energy use when compared to power plants, represent a more efficient way of using energy. Less energy will be wasted in the process and opportunities for better pricing are considerations derived from this.
  • Decentralized Energy Production: Microgrids, by virtue of being able to interconnect different sources of energy production, provide a more robust and reliable energy supplying system; mitigating potential outages and liabilities could increase the value of real estate properties.

Understanding the ways in which utility companies will seek to satisfy the demands of consumers in the future will facilitate the process of planning and investing in new properties in the years ahead. Here at VCA, we believe that a proactive attitude towards helping clients navigate the rapidly changing waters of the energy sector is crucial for the successful planning of future projects. For more information on how to understand the energy implications in your projects, contact Moe Fakih below.

Contributing Writer: Alejandro Gamas, Energy Modeling Coordinator

Moe Fakih, Principal

Resiliency and Microgrids (ca.gov)
California To Fight Wildfires With Microgrids And Batteries (forbes.com)
https://microgridknowledge.com/microgrids-economic-development/#:~:text=Microgrids can be used as a good marketing,attracting potential tenants that need
Microgrids – 3 Commercial Real Estate Benefits & Advantages (aipcommercialrealestate.com)