This session from the 2024 NABERS + CBD Conference covers practical examples of how buildings are making the switch and discusses the opportunities, challenges and insights on electrification.
“The future is all electric,” emerged as a key theme throughout the 2024 NABERS + CBD Conference.
In some sectors, the commercial imperatives are clear. JLL’s Early mover advantage report, published in November 2023, found 74% of large office occupiers in Sydney and 67% in Melbourne have set net zero targets and will soon be on the hunt for electrified buildings – if they aren’t now. But electrification projects are “scarce”, said JLL’s Head of Strategic Research for Australia, Annabel McFarlane. JLL found 2028 and 2030 will be “critical years” and landlords must start thinking about what they plan to do now.
JLL’s report also confirmed buildings with a NABERS Energy rating of 5.5 stars or more present clear financial benefits: 10% higher net face rents; 39 basis points sharper yields and a 2.7% lower vacancy rate than the wider market. “That is what will matter to landlords,” Annabel observed.
Nathan Rosaguti, Manager, Sustainability Integration at GPT spoke to some of the challenges of electrification and how they can be overcome.
“A lot of the challenges boil down to the costs of technology, which is rapidly evolving. Business continuity and competing priorities do have significant financial impacts but one of the most important ones is around timing. It’s important to get your ducks lined up in a row so you’re ready to pull the trigger by the time your boilers fall over, otherwise you’re going to get stuck with a like for like gas boiler system and it’s back at square one.” - Nathan Rosaguti
Supratik Ghosh, Head of Market Transformation, NABERS looked ahead to what the impact of a rapidly decarbonising grid will mean for NABERS Energy ratings. “How do we adapt to the decarbonising grid and in that process support buildings in their electrification journey?”
Watch ‘All-electric buildings’ and other sessions from the 2024 NABERS + CBD Conference here.