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The Emergence of Energy-positive Buildings: A Catalyst for the New Urban Economy

The Emergence of Energy-positive Buildings: A Catalyst for the New Urban Economy

In the shadows of the current energy landscape, a transformative trend is discernible—energy-positive buildings (EPBs) are moving from rarities to the avant-garde of urban architectural design. These structures are not only self-sufficient but generate surplus energy, creating a ripple effect with potential industrial disruptions. This trend alert delves into the emerging trajectory of EPBs, spotlighting the nascent innovations and their far-reaching implications.

29 February 2024
Tags: energy

Introduction

Recent shifts in the geopolitical and energy sectors—ranging from gas supply uncertainties to retiring traditional power plants—are creating a fertile ground for the rise of EPBs. This novel architectural paradigm is shifting the focus from energy-efficient buildings to structures that become net energy producers. The convergence of technology, policy, and economic drivers is setting the stage for EPBs to play a pivotal role in the future's urban infrastructure.

What's Changing?

The world of infrastructure is currently witnessing the convergence of several key developments:

  • The impending availability of areas previously dependent on natural gas and other fossil fuels is driving interest in alternative energy sources.

  • In India, a country poised for urban transformation, there's a $700 billion investment forecast for low-carbon, climate-resilient urban infrastructure between 2021 and 2031. 

  • The energy industry is witnessing a substantial retirement of coal and natural gas-fired power plants in the United States.

  • Globally, there is an intensified race to leverage green hydrogen as part of a clean energy solution, despite its complexities.

  • Increased attention on renewable energy technology transfer from lab research to real-world application.

Collectively, these developments are coalescing into a strong undercurrent for the rise of EPBs.

Why is this Important?

EPBs are poised on the brink of revolutionizing our built environment for several reasons:

  • EPBs address the urgent need for energy resilience amid volatile fossil fuel markets and intensifying climate change effects, signaling a shift toward more sustainable urban developments.

  • The energy surplus generated by EPBs can be redirected into the grid, contributing to energy security, and potentially reducing reliance on external energy imports.

  • These buildings position themselves as a novel asset class in real estate, embodying sustainability while also offering a tangible return on investment through energy production.

  • Their rise may stimulate advancements in associated technologies, such as energy storage and smart grid systems, signalling a nascent market opportunity for innovation.

Implications

The ascendancy of EPBs presents several implications across various sectors:

  • Real Estate and Development: The standard for high-value properties may shift increasingly towards EPB certifications, leading to a redesign of construction practices and a rise in corporate investments in sustainable infrastructure.

  • Energy Sector: Utility companies must adapt to a changing landscape where urban buildings transform from energy consumers to producers, potentially disrupting traditional energy business models.

  • Policy and Regulation: With the proliferation of EPBs, governments may need to establish new regulations and incentives to promote and manage energy distribution from these decentralized sources.

  • Technology Companies: A demand surge for innovative building materials, efficient energy management systems, and renewable energy technologies will offer lucrative opportunities for tech companies.

  • Environmental Impact: EPBs play a significant role in reducing urban carbon footprints, bolstering efforts to combat climate change and promote environmental sustainability.

Questions

To harness the potential of EPBs, strategic planners should consider the following questions:

  • How might utilities redesign their business models to incorporate the surplus energy generated by EPBs?

  • What kind of policies and incentives are necessary to accelerate the adoption of EPBs?

  • Which technological innovations can further enhance the efficiency and viability of EPBs?

  • In what ways can the real estate market capitalize on the value proposition offered by EPBs?

  • How can institutions foster collaboration among urban planners, technologists, and policymakers to ensure the seamless integration of EPBs into the urban landscape?

Summary

Energy-positive buildings are emerging as a critical component of the urban fabric, laying the groundwork for a future where self-sustained and energy-generative architectures are the norm. With the right confluence of policy support, technological innovation, and market forces, EPBs could herald a new epoch in energy and urban planning, characterized by a greater emphasis on sustainability and resilience.

Bibliography

Sources referenced in this trend alert:

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