Logical Buildings, a leading provider of decarbonization technology and ESG solutions for the built world has announced the successful closing of a $110M virtual power plant (VPP) project facility with Keyframe Capital. This funding will be used to pursue VPP projects within New York City- and New Jersey-based multifamily residential buildings, driving energy savings, reducing greenhouse gas emissions, and establishing new channels for grid services revenue.
The funding will be repaid through energy savings and grid revenue, providing a unique first-of-its-kind funding channel for deploying energy transition projects in the previously untapped multifamily housing market. This comes at a time when many operators seek solutions to comply with upcoming emissions reduction and energy efficiency regulations.
With no upfront capital required, upgrades facilitated by the project facility will instantly reduce carbon emissions and create revenue-earning opportunities for residents and building owners alike. Using connected smart thermostat upgrades that integrate with Logical Buildings’ two proprietary demand response platforms: GridRewards™ for residents and SmartKit AI™ for operators.
The Multifamily Market
“Imagine providing residents with smart thermostats that reduce building energy usage, lower resident utility bills, and generate cash rewards, while simultaneously enhancing comfort and convenience. With our new project facility this is now a reality,” said Jeff Hendler, CEO at Logical Buildings. “The multifamily market remains largely untapped when it comes to impactful decarbonization and energy transition projects. Our project facility provides building owners with access to new opportunities to create thousands of grid-connected smart apartments at once, instead of the traditional ‘one home at a time’ approach to residential energy savings.”
The building’s utility smart meters will link to each apartment’s smart thermostat, generating grid services revenue in utility and wholesale grid-level programs. Logical Buildings will also provide engineering expertise to help identify the highest ROI projects and measure, verify, and continuously maximize the VPP operational value for each building.
Specifics for Residents and Operators
Through this project, rewards are available to both residents and operators, aligning incentives and addressing the “split incentive” problem commonly found in multifamily energy efficiency efforts. Building owners can bundle several projects within one building or use project facility funding to pursue upgrades across an entire portfolio. Allowing stakeholders to maximize utility, state, and federal incentives as well as tax credits.
By implementing an innovative structure, Logical Buildings enables its clients to implement decarbonization measures and align incentives across all stakeholders. Furthermore, the Climate Mobilization Act and its equivalents will go into effect on January 1, 2024. Starting next year, every kilowatt-hour and therm used by a multifamily building and its residents will count against new carbon emissions caps.
By providing access to the multi-million dollar project facility, thousands of multifamily buildings will be able to decarbonize through the deployment of breakthrough, high ROI, rewards-driven technologies that seamlessly integrate with smart meters and thermostats.