Property Week: Insights from OakTree Power CEO Chantel Scheepers
In the face of escalating energy costs and economic uncertainty, the commercial real estate sector finds itself at a crossroads. Chantel Scheepers, CEO of OakTree Power, recently highlighted in a Property Week article how advanced technologies can not only cut building energy usage but also improve property marketability and financial performance. Here’s a deeper look at the untapped potential of energy flexibility and why it’s crucial for property owners today.
The Current Landscape
As the UK experiences its highest inflation rate in four decades, the looming threat of a recession adds further strain on landlords and property managers. While the post-Covid era seemed promising, skyrocketing energy prices have cast a shadow over what was thought to be a clear path forward for the real estate sector. In such a competitive landscape, ensuring that properties remain attractive to tenants and investors is more crucial than ever.
The Role of Demand-Side Response (DSR)
One of the key solutions Scheepers discusses is Demand-Side Response (DSR) technology. DSR allows commercial and industrial buildings to detect non-essential electricity usage and effectively ‘sell’ this unused energy back to the National Grid during peak times. This not only provides a new revenue stream but also enhances the building’s energy efficiency and BREEAM rating—a benchmark for assessing an asset’s environmental, social, and economic sustainability performance.
The Benefits of Adopting DSR
Adopting DSR technology can significantly cut baseline energy consumption—by as much as 28% according to Scheepers. This reduction not only helps mitigate the impact of high energy costs but also positions properties as more appealing and sustainable investments. In a market that may slow down due to economic pressures, properties equipped with such innovative technologies are likely to outperform those without.
Why It Matters
While a recession is not a certainty, high energy prices are expected to persist, making it imperative for property owners to explore every avenue to control costs and boost property appeal. Buildings with integrated energy flexibility solutions like DSR stand a much better chance of thriving in a tightened economic environment.
Conclusion
As Chantel Scheepers astutely points out, embracing technologies like DSR is not merely about coping with current challenges but about strategically positioning real estate assets for long-term success and resilience. Property owners and managers looking to stay competitive should consider how energy flexibility can be leveraged to enhance their property’s appeal and operational efficiency.
