New technologies in renewable energy storage for real estate

The global transition from fossil fuels to renewables hinges on our ability to safely and reliably store energy produced by sustainable means. Oil goes in tanks, coal in sheds, and pipelines can easily transport natural gas. Yet, despite the rapid deployment of renewable power sources worldwide, storing their energy in the same way has hampered their growth and widespread adoption.

Battery electricity storage (BES) and thermal energy storage (TES) systems are the most widely used technologies for preserving power from renewable sources. In previous years, the prohibitive costs and extraction of minerals such as lithium, nickel, and copper made battery storage adoption challenging. However, the International Renewable Energy Agency (IRENA) predicts that BESS costs will decrease by 50-60% by 2030, potentially widening their market use scope.

Geothermal energy is also surging in popularity; the global market is set to triple in size by 2030. In the next five to ten years, global investment in TES solutions could range between $13 billion and $28 billion. The advancement of thermal storage tank technology has enhanced its business case, making it attractive to the real estate sector for its use in energy saving for large commercial buildings.

The decarbonization of commercial property is now well underway, with proptech solutions able to tackle a wide range of environmental and practical building management challenges. CRE businesses must continue to find long-term savings to meet regulatory compliance thresholds and ESG targets. This article will explore the scope of renewable energy storage and its application potential within your commercial portfolio. 

Commercial building energy storage: Systems and solutions that work

Investment and growth in clean energy solutions are accelerating in Europe and the US. The European Green Deal will invest €1 trillion in sustainable investments by the end of the decade, and in 2022, the Biden administration in the US pledged $370 billion in green energy technology. Renewable storage is central to this debate; without cheap and reliable methods for businesses to retain power using on-site solutions, adapting to clean energy without the need for fossil fuels will become more challenging. 

Battery electricity storage (BES) systems 

When Alessandro Volta first discovered battery technology in 1800, he could not have imagined the scale of demand from advanced economies some 225 years later. McKinsey analysis predicts that global battery usage will reach 4.7 TWh by 2030, around a fifth of the world’s total electricity usage in 2019.

The primary application for BESS technology is the lithium-ion battery (LIB), which has been around in the commercial market since the early 1990s. However, the technology behind them has advanced rapidly in the last 10 years, and prices are now 20% lower than in 2023. The emergence of cheaper lithium-iron-phosphate batteries offers a low-cost alternative, and can be used in everything from electric vehicles (EVs) to commercial buildings.

In commercial properties, BES systems are intended to overcome the issue of variable renewable energy supply. In other words, they answer the question of what keeps the lights on when the sun isn’t shining on solar panels or the wind isn’t blowing on turbines.

Batteries can be charged from the grid when renewable sources are abundant and discharged when supply is limited. The scale of battery application in commercial buildings will depend on the structure’s size and dependence on renewables. However, the largest utility-scale batteries can store up to 10 MWh—enough to power 2,000 homes.

Fire is a primary concern for building managers when adopting LIBs. While research and development are ongoing to minimize the risk of battery failure and explosions, fire services are seeing increased callout rates in response to battery fires. Thorough maintenance and proper end-of-life recycling are best practices to help mitigate the risk of emergencies and ensure safer usage.

Thermal energy storage (TES)

Heat, ventilation, and air conditioning (HVAC) systems contribute up to 40% of a building’s energy consumption. In the harsh winters of northern Europe and North America, the demand for electricity to heat indoor spaces typically increases by a third or more. Geothermal energy generation through ground-source heat pumps (GSHPs) is becoming more commercially viable, with an additional 10 million units expected to be installed across the EU by 2027.

TES relies on capturing excess heat from a range of sources, including solar panels and geothermal extraction, and storing it in highly insulated tanks to be converted into use throughout a building, supplementing its HVAC system. This is known as sensible heat storage; its primary advantage is that it decouples heating and cooling demand from power supply.

There is a wide variety of sensible heat storage applications, from conventional water tank heating to molten salt storage, which involves heating liquid salt to 565°C. While these applications each have their own use cases, it is still an emerging market with cost and adoption practicality challenges. 

The EU is still in the process of exploring measures to accelerate TES adoption across the bloc, and regulate the sector to ensure standardization and high safety standards.  Combined, each of these solutions has the potential to contribute to decarbonizing Europe’s heating and cooling supply. 

The business case for on-site energy storage

Imagine that your CRE business had access to an unlimited power source without tapping into the national grid. Instead of a monthly gas and electricity bill for you and your tenants, your site would be able to heat and cool itself while generating the energy required to keep the lights and devices on. This is the ideal that underpins the case for on-site power storage.

Regulatory landscape and green building requirements

On-site storage on a scale that could power a portfolio may be out of reach. However, the rapid advancement of technology and the desire of legislators to decarbonize the built environment might mean that on-site energy storage may happen sooner than you think. 

The European Green Deal aims to make Europe the first net-zero continent by 2050, achieved in part by ensuring that 80% or more of the bloc’s energy supply is generated through renewable sources. In 2023, the Commission set out guidance for its member states on adopting clean energy storage, recommending expanded efforts to fund renewable energy projects and support businesses by eliminating regulatory barriers to energy storage adoption.

In the US, the 2022 Inflation Reduction Act afforded tax credits to CRE businesses that install renewable energy sources and on-site storage at their properties. This includes a reduction of up to 30% on investments in energy storage, plus a credit of 2.75¢ per KWh for regenerative energy.

Real numbers from real buildings

Major players in commercial real estate are already making moves to implement renewable energy storage. MGM Resorts, one of the largest real estate operators in Las Vegas, has been using a 100MW solar array to power 90% of its 13 signature properties on the world-famous Las Vegas Strip. In 2024, it completed an additional 115MW solar array with a 440 MWh BES system, generating and storing enough electricity to power 28,000 average-sized US homes. 

Widely regarded as one of the world’s most advanced ESG green buildings, the Edge complex in Amsterdam was built with 65,000ft2  of solar panels on its south facade, generating enough electricity to power every electronic device and vehicle charging station in the building.

It also stores thermal energy generated by the panels in an aquifer 129m below the ground. This allows excess energy to be stored according to seasonal needs – extracting heat for winter and releasing it in summer. The overall result is that the building consumes 70% less electricity than buildings of its size. It has been awarded the BREEAM Outstanding classification, achieving the highest overall score of any BRE-rated building.

Turning your property into a power trader with energy storage

If your CRE organization is serious about harnessing renewables to lessen reliance on the grid and generate on-site electricity, then energy storage is worth considering. The European solar BESS market is experiencing rapid growth, with usage increasing by 94% in 2023. The regenerative benefits of battery and thermal storage, as well as experimental technologies such as hydrogen fuel cells, can offer long-term energy savings and turn your CRE business into a green leader.

Demand response programs and renewable storage revenue

The major benefit of energy storage is the medium and long-term cost reductions as a result of lower energy consumption. Studies show that the EU could save as much as €9bn per year by 2030 if battery storage is adopted across the continent. Per building, projections based on US infrastructure show that capital costs can be reduced by as much as 75% by 2050 with efficient BESS adoption.

Proptech can take this further by utilizing demand response programs to optimize building energy use. With IoT sensor data and energy management control systems offering real-time power reduction by adapting energy usage according to demand, your commercial building becomes much more economical with its power consumption. 

Not only will this plug-and-play connectivity free up excess energy capacity that can be stored, but it can also relieve the strain on battery storage and increase its life cycle, reducing operational costs further.

Integration with building management systems 

Energy storage systems can be synchronized with a building’s energy management infrastructure. Yet, advanced proptech solutions can further support automated and optimized battery and thermal storage usage by integrating them into a building management system (BMS), driving further energy savings and optimization benefits.

AI-ready solutions can help the built environment move toward a modern grid with advanced algorithms that predict future energy demand based on data trends and seasonal metrics. This real-time machine learning can deliver much more effective storage utilization, with BMS software able to quickly analyze storage data and allocate energy resources throughout the building most efficiently.

Digital twins and predictive analytics in storage systems

Complex energy infrastructure can be challenging to maintain efficiently without effective resource management. Digital twin technology simplifies this process by utilizing real-time data to inform the full-scale virtual recreation of a building’s systems in software. 

Use cases in the energy sector already highlight the capabilities of digital twins; Askelos, a digital twin market leader, created the world’s first structural copy of a hydroelectric power station in Ireland using its digital twin platform. 

This technology can further enhance renewable energy storage through its AI-led simulation of real-world data to analyze and predict performance outcomes. It can enhance the day-to-day running of energy systems, drive operational efficiency, and improve the system’s long-term operational health.

Enhance your energy storage with ProptechOS

The rapid growth of geothermal solutions and battery technology has brought energy storage closer to utility-scale reality. CRE organizations are already starting to reap the benefits of renewable implementation, not just for their sustainability goals but through operational efficiency gains that reduce energy costs by magnitudes. 

Proptech has a vital role in supporting the effective rollout of this exciting technology across the commercial landscape. ProptechOS is at the forefront of this digital revolution in Scandinavia and beyond. Our portfolio-scale suite of energy management programs targets operational efficiency by identifying energy-saving opportunities without expensive retrofits. 

Our proptech solutions can make your CRE organization a market leader in operational efficiency. With renewable systems and demand response programs, your business will hold greater energy flexibility, relying less on the grid and driving long-term sustainability.

Your CRE business can sign up for a free demo of ProptechOS today.