Australian property companies are at a pivotal moment in the energy transition, facing a multitude of opportunities to create new value while grappling with significant challenges, according to a new Procore and Property Council report.
Power Play: Energising Opportunities for Property and Renewables explores how collaboration between property and energy companies can help Australia achieve the 82 per cent renewable energy target by 2030.
“With billions flowing into renewable energy projects, the net zero transition is as much about seizing business opportunities as it is about reducing emissions,” says Mike Zorbas, Chief Executive of the Property Council of Australia.
“Australian property companies are global leaders in sustainability, positioning us to support the nation’s net zero goals.
“While the decarbonisation challenge is profound, our research finds property companies can create new financial and social value when they work in partnership with energy companies.”
The report draws on insights from a survey of 403 leaders in the property and energy industries, with 84 per cent holding senior positions.
An overwhelming 92 per cent of respondents prioritise investment in renewable energy, with a focus on battery storage, energy management systems and smart grid technologies.
Promising avenues for revenue generation include offering energy storage solutions, partnering with energy companies to create virtual power plants, and developing community solar projects.
Property companies are also exploring options to sell surplus solar energy back to the grid, establish peer-to-peer energy trading platforms, lease rooftop space for solar installations, provide electric vehicle charging services, advise tenants on renewable energy options, and monetise renewable energy certificates.
“To succeed, multi-tasking must shift into overdrive, and property leaders are feeling the pressure to do ‘everything, everywhere, all at once’,” says Jeremie Henry, Industry Partnerships Manager, APAC, Procore.
“While the most frequently cited obstacle, noted by 15 per cent of respondents, is the high initial capital costs of renewable energy projects, there are a multitude of complex adoption and innovation challenges to be overcome.”
These barriers include technology gaps and reliability issues, uncertain returns on investment and lengthy payback periods, complex integration processes, regulatory and compliance issues, physical constraints, grid connection and capacity limitations, and a lack of market incentives.
“Despite the obstacles, Power Play suggests now is the time for the property and energy leaders with vision to proactively forge alliances that create shared value for businesses, tenants and society,” Mr Henry says.
Government incentives, regulation and building codes are the three biggest factors likely to drive integration between the property and renewable energy industries.
“Collaboration is our superpower,” Mr Zorbas concludes. “Dismantling the big barriers and creating the right incentives matched by smart policies is the key to unlocking energy market opportunities. With just six years left to meet Australia’s ambitious renewable energy target, let’s get on with it.”
Download Power Play: Energising Opportunities for Property and Renewables.