News Feb 02 24

Renewable Energy in Factory for Lease: A Boon for Tenants

Shared
Post Image

With rising stakeholder demand for sustainable real estate and a growing emphasis on achieving net-zero goals, industrial zones are increasingly implementing renewable energy methods to attract investors and renters. This article explores the importance of incorporating renewables into industrial spaces and how they can benefit businesses looking for a factory for lease

Let’s delve into the future where factory for rent isn’t just about space but about sustainable, cost-effective, and environmentally conscious operations.

What is renewable energy?

Renewable energy is defined as energy produced from natural sources that can be regenerated faster than they are used up. Incorporating renewable energy into industrial real estate involves using these sources to power manufacturing processes, reducing dependency on traditional, often environmentally harmful, energy sources. 

Here are some typical sources of renewable energy:

Solar power

Solar technologies use photovoltaic panels or mirrors to concentrate solar radiation and transform it into electricity. Installing solar panels on roofs or open areas of a factory for lease offers a consistent and clean power source to meet energy needs.

Wind power

Wind power utilizes wind turbines to convert the kinetic energy from the turning motion of blades, propelled by moving air, into electrical energy, thereby generating electricity.

Geothermal energy

Geothermal energy harnesses the Earth’s natural heat beneath its surface to generate power. By tapping into the Earth’s internal heat reservoirs, this renewable energy source provides a sustainable and eco-friendly solution for electricity generation.

Hydropower

Renewable Energy in Industrial Real Estate: A Boon for Tenants
Hydropower. Photo from Wikimedia

Hydropower refers to the generation of electricity through water movement, typically harnessed in dams or flowing rivers. Currently outpacing all other renewable technologies combined, hydropower is anticipated to maintain its status as the leading source of renewable electricity worldwide through the 2030s.

The current landscape of industrial energy consumption

For decades, most industrial activities have relied on traditional energy sources. Factory for lease, essential hubs of production and manufacturing, have taken electricity from conventional energy grids dominated by fossil fuels. Despite their efficiency, these energy sources have left a notable environmental footprint, substantially contributing to carbon emissions and other pollutants. 

The negative impacts of traditional energy consumption, such as greenhouse gas emissions, air pollution, and resource depletion, are becoming more apparent. Aware of the alarming environmental situation, global organizations, countries in general, and businesses in particular are increasingly concerned about replacing fossil fuels with renewable energy sources.

According to the International Energy Agency, renewables will account for 35% of global power generation by 2025, up from 29% today. Therefore, the proportion of electricity generated by coal and gas will decrease.

Benefits for industrial tenants using renewable energy in their factory for lease

Cost savings

Renewable energy provides significant long-term cost savings to industrial tenants, making it an appealing alternative when considering a factory for lease. Tenants that adopt sustainable energy measures can significantly reduce operational costs.

For example, installing solar panels or wind turbines can reduce dependency on traditional energy sources, cutting electricity expenses. These savings build over time, resulting in more predictable and sustainable operational budgets over the lease period.

Environmental benefits

One of the standout features of renewable energy is its capacity to address climate change by curbing carbon emissions, reducing dependency on finite resources. The utilization of clean energy sources substantially lowers greenhouse gas emissions, contributing to a healthier environment.

For example, solar panels generate electricity without releasing any pollutants, and wind energy is also a low-carbon source, with ongoing technological advancements enhancing the efficiency of wind turbines while minimizing their impact on local ecosystems.

factory for rent
Solar panel. Photo from Pxfuel.

Tenants opting for a factory for lease using renewable energy not only decrease the ecological impact of industrial activities but also contribute substantially to achieving sustainable development goals.

Positive impact on a company’s image 

In addition to cost savings, tenants using renewable energy significantly enhance their company’s image. Operating from a sustainable facility powered by renewable sources demonstrates a commitment to environmental responsibility. This positive image not only aligns with the growing demand for environmentally friendly practices but also positions the tenant as a socially responsible entity.

As sustainability becomes a core company value, tenants choosing a factory for rent equipped with renewable energy gain a competitive advantage while contributing to a greener industrial landscape.  

CORE5 Vietnam sets new standards in industrial sustainability by utilizing renewable energy

Vietnam’s energy sector was predicted to produce an average of 224,000,000 tonnes of CO2 emissions annually by 2020, with other key industries adding around 10,000,000 tonnes.

Additionally, the country’s carbon intensity per GDP increased by 48% between 2000 and 2010, and CO2 emissions nearly quadrupled in the following decade, primarily due to coal-based power generation, industrial expansion, and a growing transport sector.

Renewable Energy in Industrial Real Estate: A Boon for Tenants
Photo from CORE5 Vietnam

In comparison, CORE5 Vietnam’s Hai Phong project zones 1A and 1B report operational energy carbon emissions of just 976.3 and 934.7 tCO2e per year, respectively. These figures are notably lower than national averages, indicating a strategic and substantial reduction in emissions and highlighting CORE5’s commitment to environmentally friendly industrial solutions.

With such low CO2 emission levels, the Hai Phong project not only supports Vietnam’s national objectives for a sustainable low-carbon economy but also establishes an environmental responsibility precedent in the industrial real estate industry. This project emphasizes CORE5’s dedication to sustainability and positions us as a leader in eco-friendly factory for lease solutions.

factory for rent
CORE5 Hai Phong – LEED-certified green factory for rent in Vietnam. Illustration from CORE5.

Read more:

In conclusion, using renewable energy in industrial real estate benefits tenants significantly. By harnessing sustainable energy sources, factory for lease can enjoy numerous benefits, including reduced operating costs, enhanced brand image, and environmental responsibility. The shift towards renewable energy not only aligns with global sustainability goals but also positions industrial tenants as responsible corporate citizens.

Are you keen to explore eco-friendly, energy-efficient industrial factories in Vietnam? Delve into the details of CORE5 Vietnam, the factory for lease with world-class standard facilities in the country’s northern region.

Background contact us

Accelerate your business with Core5 Vietnam – Industrial Property is our game

Click to make an appointment with one of our specialist to visit sites or schedule call to receive a more comprehensive presentation of our industrial properties and development capabilities to offer either a soft-landing at start up and accelerate your business from commencement with Core5 as your industrial partner.