The SRI measurement is coming, are you ready?
– How the ‘smart’ building can achieve competitive advantage and new incomes with battery energy storage system (BESS)
Environmental values, the green transition and energy efficiency are positive drivers, but they will certainly cause more gray hairs for property owners and developers. How can a real estate developer best take into account ESG perspectives, when they increasingly influence the obtaining of financing as well as the decisions of investors and eventually also the residents of the properties?
Is there any smartness?
One of the metrics created to meet the requirements is the Smart Readiness Indicator (SRI), which tells you how well your property meets the needs of the future. The measurement evaluates the current state of the real estate’s intelligence, between 0% and 100%.The indicator tells, among other things:
- whether the property’s energy use is flexible
- whether the use of energy can be adapted along with the supply
- whether the property can store energy in different ways
In all of the above, battery energy storage system (BESS) plays a central role. In the calculation, the subject of the evaluation is the ability of the technical systems of the properties to operate energy-efficiently, to adapt to the needs of the users of the property and to implement energy demand flexibility.
A smart property is also able to utilize the information collected by the systems. Based on the information collected in this way, it is easier to make decisions and improve resource efficiency and support the operation of the distributed energy system. This is significant when, for example, the availability of energy will vary in the future. This is affected by the uneven production of weather-dependent solar and wind power, which you can prepare for by investing in BESS – battery energy storage system.
Benefits for the owner and users of the property include energy savings and preparation for climate change. Battery energy storage can store electricity when it is cheap and release energy back into use when the price of electricity is high. The BESS also functions as a clean energy back-up power station in exceptional situations – reducing risks and improving the property’s safety.
How to make new incomes with BESS?
In the best case, the fulfilment of SRI requirements increases the resale value of the property, but how do you build new earnings alongside savings and optimization.
Real returns are generated when smart buildings become part of the energy system. In this case, income is obtained by supporting the electricity grid by smoothing out demand and production peaks. BESS is needed because electricity production must be equal to electricity consumption at all times. Battery Energy storage system enables a completely new annual earning logic for properties at the frequency reserve market. By joining the energy storage reserve, you get a steady return throughout the year and at the same time you are supporting the energy transition towards clean and flexible energy system.
Renewable forms of energy will displace fossil fuels, so investments in the future are essential. At the same time, the need for energy storage will increase by more than 600% in the next few years. This is a clear place for real estate to promote its operations from an ESG perspective, while improving its own competitiveness and creating new business. We are happy to help.