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Evaluating Properties for Energy Projects

As the global demand for energy continues to rise, so does the need for efficient and sustainable energy projects. One of the critical aspects of successful energy projects is the identification and acquisition of high-value properties.

Energy efficiency, decarbonization and energy storage have become important for all levels of government not only to support growing populations but also to expand the renewable energy portfolio to meet state and federal energy goals.

LandGate provides data and analytics to integrate renewable energy and commercial real estate across the United States. Professionals that are interested in utilizing these data sets can book a demo to learn more about the platform.

The Importance of High-Value Properties and Location for Energy Projects

Location plays a critical role in the success and effectiveness of commercial real estate projects involving clean energy projects that involve a better electric system or storage system. In order to have distributed energy across populated areas, it is important to identify properties that have the potential to handle electrical infrastructure.

Accessibility and Convenience:

  • Proximity to High-Traffic Areas: The strategic placement of commercial real estate properties intended for EV charging stations and battery storage facilities is crucial. These properties should be located near busy areas such as vibrant shopping centers, thriving business districts, and heavily traveled major highways.

  • The reason for this deliberate choice is to make it easier for electric vehicle owners to access the charging infrastructure, which will ultimately increase their usage and generate more revenue for the property owner.

  • Accessibility for Grid Operators: In order to ensure seamless integration and effective functioning within the electrical grid, the positioning of battery storage facilities necessitates careful consideration of their geographic location. By locating these facilities near substations or areas with high demand for grid services, it is possible to establish efficient connections to the electrical grid.

  • This optimizes grid management operations and reduces transmission losses that may occur during energy transmission.

Grid Support and Stability:

  • Grid Constraints: Accurately detect and identify areas that are afflicted with grid constraints, which may manifest as recurring power outages or voltage fluctuations.

  • The strategic positioning of battery storage facilities plays a crucial role in not just stabilizing the grid, but also improving its overall reliability for the numerous commercial and residential consumers it serves.

  • Grid Services: Battery storage facilities harbor immense potential to offer a plethora of invaluable services to the grid. These services encompass a wide range of functionalities, including but not limited to peak shaving, load shifting, and frequency regulation.

  • To maximize their effectiveness, it is imperative that these facilities are strategically situated. This will enable their seamless integration into demand response programs and grid-balancing services that strive to optimize the grid's efficiency and productivity.

Market Demand:

  • Demographics and EV Adoption: Ensuring a successful return on investment for EV charging infrastructure, it is crucial to thoroughly comprehend the demographics of the local market and the rate at which electric vehicles are being adopted.

  • It has been observed that areas that have a higher concentration of electric vehicle owners tend to yield a more profitable outcome for such investments.

  • Future Growth Potential: It is equally important to take into account the future growth potential of the area in question when considering the establishment of EV charging infrastructure. Locations situated in regions that are experiencing a steady increase in population and witnessing a surge in the adoption rate of electric vehicles might present long-term and sustainable revenue opportunities.

Infrastructure and Zoning Regulations:

  • Infrastructure Availability: Thoroughly evaluate and assess the availability of the essential infrastructure required for a successful project. This includes important aspects like electrical connections and road access.

  • By doing so, one can avoid unexpected and expensive upgrades or potential delays that may arise if the infrastructure is found to be inadequate or insufficient.

  • Zoning and Permitting: It is crucial to understand the local zoning regulations and permitting prerequisites that specifically pertain to commercial real estate ventures involving EV charging and battery storage. Zoning laws aim to establish a comprehensive framework for the overall character and ambiance of neighborhoods.

  • Typically, lawmakers craft these regulations to strike a harmonious balance between economic considerations, historical preservation, social considerations, and aesthetic preferences.

Grid Integration Opportunities:

  • Grid Interconnection: One of the key factors to consider in determining the suitability of a location for electrical grid integration is its proximity to substations and grid interconnection points. If a location is situated near these crucial infrastructural elements, it can lead to significant benefits such as reduced infrastructure costs and enhanced grid management capabilities.

  • This is because being close to substations and interconnection points allows for easier and more efficient integration with the local electrical grid, leading to a smoother and more streamlined operation overall.

  • The ease of interconnection facilitates the seamless flow of electricity between the location and the grid, ensuring reliable and consistent power supply. The proximity to these grid elements enables better management of the grid system, making it easier to monitor and control the distribution of electricity. By maximizing the utilization of these essential grid components, a location can contribute to the stability and efficiency of the overall electrical grid network.

LandGate’s data is able to provide platform subscribers with unique searching capabilities to locate property that is close to electrical infrastructure like substations and distribution lines.

Environmental Considerations:

  • Environmental Impact: Through a detailed examination of land use, it becomes possible to determine the extent to which the project influences the surrounding environment and ecosystem. A focus on emissions reduction ensures that the project actively contributes towards minimizing its carbon footprint and promoting cleaner air quality.

  • The incorporation of sustainable development practices plays a pivotal role in ensuring that the project aligns with long-term environmental goals, such as preserving biodiversity and utilizing renewable resources. By considering each of these factors, the project can establish a holistic understanding of its environmental impact, allowing for informed decision-making and the potential for positive change.

By opting for environmentally friendly locations to implement the project, the organization not only fulfills its corporate social responsibility goals but also enhances its potential to attract a customer base that is environmentally conscious and values sustainable practices. The strategic choice of these locations demonstrates the organization's commitment to minimizing negative environmental impacts and fostering a greener future.

Economic Factors:

  • Cost of Land and Utilities: When considering the potential profitability of such a venture, it is essential to take into account not only the purchase price of the land but also the ongoing expenses related to utilities such as electricity, water, and other essential services. These expenses can add up quickly and potentially eat into any potential profits.

  • Carefully evaluate and compare the costs of land and utilities in different locations to ensure the project's financial viability and maximize potential returns. By selecting a location with competitive utility rates and reasonable land prices, developers can increase their chances of success and improve the overall financial outlook of the project.

Efficient and accurate site selection is a pivotal factor in the success of commercial real estate projects involving energy related development. LandGate provides data and analytics to link renewable energy with commercial real estate. The trillions of renewable energy data points appended to every parcel across the U.S. allows users to quickly analyze the renewable energy potential of assets.

Book a demo with us to learn how our platform is currently being leveraged to:

  • Prioritize site selection based on renewable energy considerations

  • Calculate risk profiles for portfolios that have potential or existing renewable assets

  • Estimate the value of energy projects like solar, wind, EV charging and battery storage

  • Access proprietary marketplace for both buyers and sellers of renewable energy projects

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