Dive Brief:
- CBRE has acquired NRG Energy’s renewable advisory group to bolster the capabilities of its sustainability solutions business, according to a news release Wednesday.
- NRG Energy’s renewable advisory group specializes in brokering and advising on renewable energy transactions, focusing on structuring community solar and utility-scale deals such as virtual power purchase agreements. The group, which has facilitated over 5,000 MW of clean power, is led by Miro Sutton who will take charge as CBRE global head of renewables and energy and report to CBRE Chief Sustainability Officer Robert Bernard, per the release.
- “Our unit is already working to integrate into various other teams that are assisting clients with their transitional energy needs. Over the next [five] years, many expect U.S. electricity consumption to skyrocket (after a decade of stagnation),” Sutton said in an email. “The renewable industry is at the heart of the solution to this complex problem. ... With the transition to CBRE, so much more will be possible.”
Dive Insight:
Market demand for renewable energy continues to grow rapidly as it plays a central role in helping companies meet their net-zero and other energy-related commitments, Bernard said in the release. Renewable energy growth is also being driven by increasing regulatory requirements and “compelling economics with using renewable energy,” with solar power generation alone expected to grow by more than 30% annually over the next two years, CBRE said, citing data from the U.S. Energy Information Administration.
A survey of over 200 U.S.-based C-suite executives, conducted by Carrier in July, found that 83% of executives plan to boost their sustainability spending over the next two years, with 57% listing sustainability as a top priority. Only 44% of executives responding to the survey expressed strong confidence in reaching the global net-zero emissions goal outlined in the Paris Climate Accord by 2050, however.
“CBRE targeted this specific advisory team because of their unique approach to renewable procurement and expansive coverage of renewable offerings. They have enabled hundreds of projects and thousands of MWs through their innovative contract structures that reduce risk and enhance economics for their customers,” Bernard said in an email.
While companies can reduce energy consumption by as much as 30% through physical interventions, getting to net-zero requires addressing 100% of companies’ energy use, according to Bernard. Integrating renewable energy into organizations’ real estate can be a complex process, however, Bernard said.
As the renewable energy industry continues to evolve rapidly, CBRE’s clients are in need of partners that can help them to navigate complexity while improving their economic and risk positions, Bernard said. The acquisition will enable CBRE to provide these clients with holistic guidance and options for addressing the full extent of their commercial real estate sustainability needs, he said.
“The ability to assist clients with community solar, transferable tax credits, utility-scale power purchase agreements and distributed generation such as onsite solar, enables the team to efficiently identify the appropriate solution set for each client,” Bernard said.
The renewables team that reports to Bernard is part of CBRE’s sustainability organization, which works across its Advisory Services, Global Workplace Solutions and Real Estate Investments segments, Bernard said.
CBRE said it currently has hundreds of professionals working on renewable energy and sustainability for clients, and will continue to work closely with NRG Energy to help both companies’ customers achieve their energy ambitions.
CBRE declined to disclose the financial terms of the acquisition.
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