Gridium Software builds value from what you currently have. Our new Gridium Alpha offering develops upgrade projects for your building, measures the results, and sells these harvested efficiency resources back to the Grid. All with zero upfront costs.
Gridium now services over 1,500 commercial buildings with our market leading software for operational analytics and data-driven sustainability. To date, our customers have powered expansion in building value with Gridium software and advice, helping them get more from their existing buildings and equipment already in place.
Today, we are officially launching Gridium Alpha, a new unit designed to bring costless upgrades to Gridium buildings, and to help building owners generate differentiated market returns. Just like active investors seeking above average returns, we believe investors that recognize the power of energy efficiency will generate true Alpha for their assets.
Across our base of buildings spanning 200 million square feet, we’re frequently reminded of the opportunity for deep upgrades. Our customers are constantly dealing with antiquated equipment and struggling with painful workarounds to try to reduce energy use. We hear many stories of high return projects that are denied in budget approvals year after year.
Researchers agree. McKinsey & Company estimates there is a massive $252B of energy efficiency trapped in the US commercial building stock. The question has always been how to unlock that value, especially in commercial real estate where ESCO models have failed.
The secret for Gridium buildings is in the Grid.
Across the nation, the electricity grid is transitioning from dirty to clean energy, and from centralized to distributed supply. Advanced utilities are now setting in motion programs where commercial buildings can sell their extra energy back to the Grid.
Instead of anemic, widget-based incentives, utilities pay for reduced energy, just like they pay for energy from a wind or solar farm. Instead of spreadsheet-based calculations, savings are measured with Advanced Measurement and Verification technology, providing a reliable stream of payments that fully values the energy upgrade. Buildings then sell these efficiency resources back to the Grid via a power purchase model that works for tenants, owners and investors, and the local utility.
Because the Grid is involved, the model also unlocks project financing. Longer payback projects qualify, and we can start a project with zero budget impact no matter where you are in the capital cycle of your building. Energy payments from the Grid are on the utility bill, allowing for maximum cost recovery and structured for compatibility with commercial real estate owners.
We’ve been studying how to improve project economics for a long time, but other teams saw this before we did. Earlier this year, we executed a transaction with Engie Services U.S., and brought the key principals Aaron Panzer and Ian Guerry to Gridium, along with their entire pipeline of efficiency resource projects.
Over the coming months, we’ll be sharing our progress and announcing program details as our contracts finalize. We’re in touch with some customers already, and the Gridium customer reception has been strong. Our analytics coupled with our knowledge of the building can help identify measures, and qualify projects. All of this is built on a foundation of compelling financial models.
We look forward to expanding that conversation in the future and deepening the value we can provide to Gridium building owners pursuing data-driven sustainability goals.
As always, please reach out to discuss if you’d like to learn more, and stay tuned.
Congrats on embarking on a new and exciting journey, Tom. Very promising. Looking forward to following the roll-out progress. Best, Olav