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Electricity for tenants: key to a carbon-neutral housing industry and affordable rents

The housing industry is faced with the dual challenge of achieving climate neutrality and ensuring affordable housing. In this area of conflict, rental electricity is increasingly emerging as a promising solution that appears to be able to combine both objectives. Dr Dirk Then, CEO of the noventic group, sees rental electricity as a key building block in the transformation of the industry: "The integration of renewable energy into the building supply is essential. Digitalisation is a key component: it creates the necessary transparency of consumption and optimises energy flows in order to realise economically attractive and climate-friendly offers for owners and residents."

The energy transition affects everyone

Widespread acceptance is the key to success. Rental electricity reduces energy costs for tenants, increases the attractiveness of the property and involves landlords and tenants as partners in climate protection," explains Dr Then. The economic viability of the projects is based on a balanced cost-benefit ratio:

Success depends on keeping investment and operating costs low and consuming as much of the electricity generated locally as possible.

Dr Dirk Then

A new role for the property industry

For the real estate industry, this means a fundamental change: from pure electricity consumers to prosumers. The main challenge is to implement new concepts in an economical and legally compliant manner, from grid efficiency to load control and storage solutions, to the integration of services such as dynamic tariffs. "If buildings not only consume energy, but also produce it, use it locally and feed it back into the grid, the importance of real estate in the energy transition will increase manifold. This will also ensure their long-term viability for housing companies by making the best use of local resources and creating new revenue streams", Dr Then emphasise.

Solutions are already available

The technology for this transformation is available today. "Much of what will be needed along the way is already available today - from smart metering and metering technology to prosumer and tenant electricity models. There is a partner for every need", Dr Then explains. "In this way, housing associations are creating the necessary structures at an early stage to efficiently integrate future business models. These will become increasingly important for the successful management of their own properties."

Electricity for tenants: key to a carbon-neutral housing industry and affordable rents

Tenant electricity offers housing companies the opportunity to provide their tenants with locally generated, sustainable electricity. However, the realisation of such projects requires an in-depth understanding of technical, legal and economic aspects. Christian Wehrmaker, Head of Product & Innovation at our subsidiary imovis, sheds light on the practical challenges and presents solutions for successfully realising tenant electricity projects.

Read the article in imovis Insights (German only)

Economical use of energy is essential

Particular attention will be paid to the interplay between decarbonisation and digitalisation. "We will never have a permanent surplus of energy", Dr Then points out. "That's why it's important to always use energy as economically as possible and to manage consumption and supply to optimise efficiency."

Digital infrastructure has a key role to play in this:

It creates transparency, enables the intelligent control of consumption and prepares the building for grid-friendly functions. In this way, the transition from fossil fuels to renewable energies in the building supply can succeed economically and resource-efficiently.

Dr Dirk Then

Regulatory requirements as guard rails

The regulatory framework for this development is provided mainly by the Renewable Energy Sources Act (EEG), the Metering Point Operation Act (MsbG) and the Energy Industry Act (EnWG). Dr Then argues for a balanced approach in this mixed situation: "Legislation should continue to develop proven technologies, but always ensure openness to new technologies." He cites the smart meter gateway as an example: "The smart meter gateway is an example of the high level of security that is important in the electricity sector. However, not all applications require such an expensive system. Depending on the application, more flexible and cost-effective solutions may be sufficient. Technological openness is therefore key. At the end of the day, the most economical approaches must prevail, as long as they meet the objectives - such as CO₂ reduction."

Conclusion

Looking to the future, Dr Then sees rental electricity as an integral part of climate-neutral buildings: "These concepts not only create the basis for the integration of renewable energies, but also stabilise local electricity grids and thus contribute to security of supply." The key is to plan from the ultimate goal: a viable roadmap to carbon neutrality and the integration of renewable energy into building supply. The combination of decarbonisation and digitalisation creates a forward-looking model that reconciles economic and environmental goals.

To overview

Dr. Dirk Then

CEO der noventic group und Geschäftsführer der KALORIMETA GmbH

Dr. Dirk Then ist promovierter Physiker. Vor seinem Eintritt in die noventic GmbH im Dezember 2019 war er fünf Jahre operativer Geschäftsführer verschiedener mittelständischer Beteiligungsgesellschaften der Lübecker Possehl Gruppe. Hier verantwortete Dirk Then in verschiedenen Branchen die strategische Neuaufstellung und digitale Transformation der von ihm geführten Unternehmen.

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