How real estate owners can meet rising energy demands while driving sustainability and profitability.
Author: Adam Woda, Dispatch Energy, Director, Strategic Development
Contributor: Alexi Makris, Dispatch Energy, Consultant
While these are uncertain times from a policy standpoint, the renewable energy industry has weathered shifting regulations before—multiple times. Historically, policy incentives have played a role in accelerating adoption, but today’s economic realities tell a different story. The value proposition for solar and energy storage has evolved beyond policy dependence, offering commercial and industrial users compelling financial and operational benefits. Rising electricity demand, grid instability, and the need for energy resilience drive businesses to invest in these technologies—not just for sustainability but for cost savings, price certainty, and long-term security of power supply. Here’s why the economics of solar and storage make sense, regardless of policy changes.
As electricity demand continues to surge, driven by the rise of data centers, electric vehicles, and increased industrial load, power grids are under unprecedented strain. Aging infrastructure struggles to keep pace with this increased demand, while peak usage times push systems to their limits, risking blackouts and costly inefficiencies.
For real estate owners, these challenges translate to rising volatility in operational costs and increased risk of power outages, which risks tenant dissatisfaction. Adopting clean energy solutions goes far beyond being a sustainability goal—it’s a business imperative. Imagine transforming your real estate portfolio into energy-resilient assets—cutting costs, mitigating supply risk, and reducing environmental impact.
The North American Electric Reliability Corporation (NERC) forecasts a 15.7% increase in summer peak demand over the next decade, with an anticipated rise of more than 122 gigawatts (GW). Notably, NERC's 10-year summer peak demand forecast has grown by over 50% within the last year. Meeting this demand will require reshaping how we approach energy management, reliability, and storage solutions in an increasingly electrified world.
The rapid expansion of AI and the accompanying surge in data center development have dramatically increased forward projections of load coming onto the grid. This new dimension is accelerating the grid's challenge. These energy-intensive facilities demand a continuous, massive power supply, exacerbating infrastructure challenges that are already failing to keep pace with growing load and delayed generation interconnections. This rapid growth not only complicates efforts to decarbonize electricity generation but also requires substantial investment in new energy generation, transmission, distribution, and storage assets.
Let’s take Virginia as an example. As a state, it houses the most data centers in the U.S., but cannot produce enough power to sustain the current demand. Northern Virginia currently constitutes 13% of all reported data center operational capacity worldwide and 25% of the capacity is used in the Americas. According to a recent report by JLARC, if unconstrained by regulators, lawmakers, or market factors, the industry is expected to drive a 183% increase in power demand in the state by 2040.
The concentration of industrial centers and automation-heavy manufacturing facilities in large, open areas is straining power grids as rising temperatures drive up air conditioning demand. With more extreme heat days expected in many regions, cooling needs are intensifying just as industrial operations require more energy for automation and manufacturing processes. This growing demand makes it increasingly difficult for businesses to secure reliable power. To sustain operations, companies must rethink location strategies for future development, focusing on access to power, local energy availability, and the feasibility of new interconnections.
One company thinking outside the box is the Bronx Logistics Center. Setting a new benchmark for industrial real estate, they demonstrate why location and energy innovation are critical considerations for real estate owners. Their 1.3 million-square-foot, multi-story warehouse in Hunts Point is equipped with a massive solar array to power EV charging for delivery fleets, as well as its own electrical substation to meet the increasing energy demands of warehouse operations. This thoughtfully designed distribution warehouse received the coveted LEED v4 Platinum rating from the U.S. Green Building Council and brought together equity partners, EPCs, and solution providers like Terrasmart to deliver a complete, end-to-end project.
With rising electricity costs, growing power demands, and increasing pressure to adopt greener operations, projects like this are a great example of how strategic investments can reduce operational risks and deliver long-term value. For real estate owners, this project highlights the growing need to future-proof assets by integrating sustainable energy solutions and addressing energy infrastructure challenges.
Even against this backdrop, a reliable, cost-certain energy supply doesn’t have to be a pipedream for real estate owners—it’s an achievable reality with the right strategy and delivery partners. You can take control of your destiny, mitigate risk, and build resiliency in the wake of an increasingly strained grid and potential and future rate hikes. But the big question is how? Here’s how you can take action:
Integrate Co-Located Renewable Generation Assets
Integrating on-site renewable energy sources, such as solar panels, can significantly reduce your facilities’ reliance on the grid while lowering exposure to rising electricity costs. Beyond cost certainty, these systems can provide resilience during grid outages by providing an alternative source of supply. For property owners, incorporating renewable energy also enhances marketability, as tenants increasingly prioritize spaces that align with their sustainability goals. This not only strengthens leasing appeal but also positions your property as a forward-thinking, environmentally conscious asset. Additionally, sourcing energy from clean technologies can ensure that assets meet building performance standards.
Invest in Battery and Energy Storage Solutions
Standalone or generation-coupled energy storage systems enable you to store excess energy for use during peak demand periods or emergencies, providing flexibility and resilience. These solutions help mitigate the risks of grid instability, fluctuating power costs, and unexpected outages. By pairing battery storage with renewable energy systems, your properties can maintain smooth operations during outages or high-cost peak pricing events. This capability is especially vital for tenants with critical energy needs—such as grocery stores that rely on refrigeration. Energy storage not only supports clean energy goals but also positions your assets as reliable, future-ready properties that meet the growing demands of today’s tenants.
Maximize Revenue Opportunities with Energy Exports and Demand Response
Monetize your energy infrastructure by selling excess power back to the grid during periods of high demand, turning surplus energy into a dependable revenue stream. Pairing this with demand response programs, which reward property owners for reducing energy use during peak times, provides an additional source of income. These proactive strategies not only generate financial benefits but also demonstrate your leadership in supporting grid stability and reliability. By optimizing your energy systems for both revenue generation and grid support, you can enhance your property’s marketability and revenue.
By investing in energy resilience today, you not only shield your properties from rising energy costs—historically increasing by up to 7% annually nationwide—but also position them to thrive in a future shaped by sustainability and economic efficiency.
Real estate owners have a unique opportunity to lead in creating energy-resilient properties that reduce costs and environmental impact. While the optimization process varies depending on location, site characteristics, occupancy models, and local policies, Dispatch Energy’s team is here to help you navigate these complexities and deliver tailored solutions for your assets.
Whether it’s securing creative financing, implementing cutting-edge technologies, or adapting to evolving policy landscapes, our experts are dedicated to crafting solutions for your unique challenges.
With extensive experience guiding clients in bringing projects online, we offer tailored advice based on your building’s rooftop space, energy consumption, and ownership or tenancy model. From navigating state-specific regulations to identifying financing opportunities, Dispatch Energy provides the expertise you need to get started.
Contact us today to discover how we can transform your properties into clean, resilient, and profitable energy hubs. (awoda@dispatchenergy.com).
Author Details:
Adam Woda, Dispatch Energy, Director, Strategic Development
Adam Woda plays an essential role as Director of Strategic Development at Dispatch Energy, creating new market strategies and executing the firm's growth plans by bridging the gap between development, project finance, and policy. Before joining Dispatch, Adam served as the Head of Community Solar at EDPR NA DG, overseeing community solar offtake, M&A, policy, strategy, and corporate partnerships. He gained expertise in prior roles at NYSERDA and Customized Energy Solutions, where he advised developers on overcoming development and economic issues. Throughout his career, Adam has directly fostered over $400MM in front-of-the-meter DG investment. Adam works across sectors, including commercial real estate, technology, heavy industrial, and retail, creating energy transition solutions that are scalable and executable. He holds a BS in Finance and Marketing from Binghamton University and a MS in Sustainability Management from Columbia University.
Alexi Makris, Dispatch Energy, Research
Alexi is responsible for researching market and policy trends to help ensure Dispatch is operating at the forefront of the DER space and brings forward the best possible solutions to customers navigating this fast-evolving market. He has worked across renewable energy sectors, including offshore and onshore wind, solar, storage, and novel technologies. As a strategy consultant, he has led economic analysis on major renewables projects for Equinor, TotalEnergies, and SSE, as well as for government bodies in the US, UK, Netherlands, Ireland, and Denmark. He develops insights driven by multiple data sources and market engagement that drive decision-making in project development strategy. He holds an MSc in Sustainability in Energy Provision and Demand Management from the University of East London.