Questions
& answers
What is electric.nyc?
electric.nyc is a joint initiative led by Hudson Square Properties - Hines, Trinity Church Wall Street and Norges Bank Investment Management - and urbs, supported by NYSERDA. By showcasing solutions and the business case behind decarbonization, we empower all stakeholders to propel the New York real estate industry into the future.
What is the problem?
New York is one of the oldest cities in America. Many buildings date back over a century. They add a unique character to the city, but the energy grid and infrastructure that supports them was built for a very different New York. The majority of buildings are still powered, heated and cooled with natural gas and steam. The steam grid dates back to the 1800s, the gas infrastructure is over 60 years old, and the way we generate energy is more than 40 years old. The city’s energy infrastructure is aging, leaking, and increasingly strained by the growing population. To sustain the city’s long-term growth, the energy grid must supply 75% more power and become vastly more efficient and dynamic.
What is the solution?
To replace the outdated city-wide energy infrastructure would be an enormous task. It would be extremely expensive, time consuming and almost impossible to manage without major disruptions to life in the city.
We are promoting a solution that is tailored specifically to New York’s century-old buildings. The solution introduces renewable energy and increases electrification using proven technology and existing infrastructure. It can be implemented and tailored for each specific block, building - or even floor, making it a cost- and resource efficient answer to our urgent challenges.
Our solution is currently being implemented in New York City at 555 Greenwich, with ongoing concept development for 345 Hudson. Follow the development here.
How does the solution work?
The most sustainable buildings are the ones already built. From a climate smart, cost- and resource efficient perspective, we need to retrofit and introduce renewable energy and increase electrification to New York’s century-old buildings.
The solution lies in replacing outdated heating, ventilation, and air conditioning systems powered by steam and natural gas with electric-powered systems. It can be implemented and tailored for each specific block, building - or even floor. It is also possible to connect adjacent buildings to further extend the compound efficiencies of the “intra-floor energy exchange” – basically creating micro-grids within NYC.
Why do we need to act now?
Every year, New York emits 56 million tons of Carbon Dioxide Equivalents (CO2e) into the atmosphere, of which almost 70% comes from the buildings. In fact, New York City has the largest carbon footprint of any city in the U.S and the third largest of any urban cluster in the world. To curb the increasing climate emergency and align with the UN Paris Agreement, New York State has set clean energy goals, aiming to achieve a carbon-free built environment by 2040.
In response, the city of New York has enacted a local law that places carbon caps on most buildings. When the caps come into effect in two years, many property owners will face annual penalties for emissions exceeding a certain amount. To put it simply, the infrastructure that New York is built on pollutes the air, harms the climate and does not live up to new state regulations. To remain the cultural and economic center it is for another century, we need to completely transform the way we power, heat and cool our buildings.
What is the potential?
We have a huge potential to reduce carbon footprint through real estate electrification and renewable energy. A market transformation from fossil to renewable energy would reduce New York’s real estate emissions by 85% and cut energy consumption in half. Real estate electrification has the potential of reducing the carbon emissions of existing office spaces by nearly 60% – instantly. The transformation would also create green jobs and support inclusiveness and social justice in local communities. Our solution will care for New York and New Yorkers for generations, bringing the real estate market into the future.
What is in it for me as a tenant?
As a tenant, you have the opportunity to:
Offer employees better health and well-being through a cleaner and more productive indoor environment, while reducing energy cost.
Be an attractive and progressive employer with a space to be proud of. Initiate change and be part of building a carbon free New York.
Meet climate demands and reflect the sustainability ambition of your company by eliminating on-site emissions.
What is in it for me as a lease advisor?
As a lease advisor, you have the opportunity to:
Gain a competitive advantage as a progressive advisor and attract the best tenants.
Meet new post-covid demands, with tenants requesting quality and sustainability at the core. Offer both existing and new tenants the chance to move into offices with zero on-site emissions.
Be part of building a carbon free New York.
What is in it for me as an investor?
As an investor you have the opportunity to:
Gain a competitive advantage as a progressive owner, increase the attractiveness of the properties by meeting new standards and climate demands.
Be part of building a carbon free New York. Strengthen your climate profile and future-proof the long-term value of your portfolio. With an investment as low as 1% in carbon reduction, you will reduce risk and operating costs with $1 per square foot, equating to an estimated added property value of 10%.
Unlock the value of the real estate market and avoid stranded assets. Stay ahead of the curve by connecting to the 2030 Agenda and avoid working with different standards for the EU and US.