Lumen Energy's software simplifies the process of determining the optimal clean energy mix for commercial real estate buildings, addressing the challenge of reducing emissions without exhaustive analysis.
The motivations and incentives for pursuing clean energy projects in commercial real estate vary depending on building type and sector, but the financial aspect is a common factor that drives value and net operating income.
Lumen Energy leverages comprehensive data and financial models to assist commercial real estate owners in making informed decisions about decarbonization, providing a streamlined and efficient way to prioritize and select renewable energy projects.
Deep dives
Loomin Energy's software helps commercial real estate portfolio managers
Loomin Energy's software assists commercial real estate portfolio managers in determining the appropriate clean energy mix for each building in their portfolio. Their auto PPA feature generates power purchase agreements for buildings using software. This addresses the challenge faced by commercial real estate companies, who want to reduce emissions in their buildings but struggle to know where to start and don't want to invest in exhaustive building-by-building analysis. Loomin Energy simplifies the complexities of the commercial real estate market, such as understanding energy usage responsibility and motivations for pursuing clean energy projects.
Understanding the complexities of commercial real estate and clean energy
Commercial real estate is a diverse industry with different buildings, tenants, and lease structures that impact energy usage responsibility. The motivations and incentives for pursuing clean energy projects also vary depending on the commercial property sector. However, a common factor in the industry is the financial aspect, as increasing a building's value and net operating income is a shared goal. Loomin Energy aims to help commercial real estate owners and tenants navigate these complexities, providing them with actionable pathways for profitable decarbonization.
The importance of data and financial modeling in decarbonizing buildings
Loomin Energy leverages comprehensive data sources and sophisticated financial models to assist commercial real estate owners in making informed decisions about decarbonizing their buildings. By analyzing factors like energy usage, physical building characteristics, and tax credit incentives, Loomin Energy helps identify the most financially viable path towards clean energy adoption. Their software platform streamlines the process, providing a reliable and efficient way to prioritize, analyze, and select renewable energy projects for multiple properties in parallel.
Auto PPA: Simplifying the procurement of clean energy projects
Loomin Energy recently released their Auto PPA feature, which allows commercial real estate owners to solicit and analyze power purchase agreement bids for clean energy projects directly through their software platform. This eliminates the need for manual procurement processes and helps building owners secure clean energy projects without upfront capital investment. Loomin Energy's Auto PPA streamlines the financial reconciliation and simplifies the decision-making process by providing accurate data, ensuring the projects deliver the intended financial and environmental benefits.
Future plans and raising capital to drive growth
Loomin Energy recently raised a Series A financing round to accelerate its growth and expansion. With the raised capital, the company aims to further commercialize its Auto PPA offering and continue refining its software platform. Loomin Energy's main focus is to scale its services and make it even easier for companies to profitably decarbonize their commercial real estate portfolios. By providing a comprehensive suite of tools and services, Loomin Energy aims to be a trusted partner in the ongoing efforts to reduce carbon emissions in the commercial real estate sector.
Peter Light is the CEO and Co-founder of Lumen Energy. Lumen Energy's software enables commercial real estate portfolio managers to identify the optimal clean energy mix for their buildings, then deploy via their marketplace. Lumen's Auto PPA product automatically generates power purchase agreements via software, eliminating the drudgery of bespoke underwriting.
In this conversation, Peter notes that many companies want to improve portfolio emissions for competitiveness but don't know where to start or invest in building-by-building analysis. He explains how energy responsibilities vary by lease and tenant type, and touches upon the motivation behind pursuing clean energy projects, all while drawing from his extensive experience in the clean energy sector.
In this episode, we cover:
[02:38]: Peter's perspective on addressing climate problems
[05:37]: His background in clean energy
[14:44]: How he met his Lumen co-founder Dave through the MCJ community
[18:22]: Overview of difference in energy billing structures by building type
[20:43]: Increasing demands from investors and tenants to decarbonize buildings
[28:45]: Key actors in commercial real estate decarbonization
[30:00]: Lumen’s customer base
[37:32]: Details of Lumen's financial modeling software for buildings
[40:05]: Lumen's use of public data to provide initial analysis for customers
[41:45]: The company's AutoPPA product for streamlined PPAs across portfolios
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Episode recorded on Oct 6, 2023 (Published on Oct 26, 2023)
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