Property Australia

Solving the energy finance problem

PROPERTY AUSTRALIA December 3, 2019

Financed energy solutions are not simply about the availability of funds. The risk profiles of distributed energy are diverse, so it pays to have a partner. Yurika’s Victor Young explains why.

As part of Energy Queensland, Yurika was established to give customers greater choice and control, drive down costs, and generate economic growth and jobs.

Young, general manager for commercial and industrial energy services, says Yurika’s pedigree – a 100-year legacy, government ownership and assets of more than $24 billion – presents huge advantages for partners.

“We are determined to drive a whole new way of thinking about energy – how we generate, store, consume and pay for it. We are working with a wide range of customers, including large-scale property owners,” Young says.

“It makes sense to have a partner with the capability, expertise, investors and understanding of the electricity business to stand alongside you. Together, we can leverage our specialised expertise and financial backing to solve your business energy challenges.”

Property companies are proactively embracing distributed energy solutions to drive down costs, lower their exposure to volatile energy markets, and reduce carbon emissions.

There’s rooftop solar and micro-turbines, digital metering and electric vehicle charging stations, battery storage, onsite embedded networks, offsite renewable energy supply through corporate power purchase agreements, GreenPower and more.

“The energy market is incredibly complex – and it’s becoming more complex by the day,” admits Young.

“Australia’s real estate investment trusts and funds have highly-refined investment criteria, risk profiles, investment cycles and return expectations.”

Young says there are “several disadvantages associated with property companies self-funding distributed energy solutions through existing cashflows or debt facilities”.

“Self-funding means property companies have less capital for investment in core business activities – and the owner retains the installation and operating risk.

“Importantly, the business models – and risk profiles – of each technology and payback can vary enormously.”

“An investment in EV charging infrastructure is a very different business model to, say, a retail business focused on providing a great customer experience to retail tenancies against a revenue certainty provided by lease agreements.”

What happens if a technology choice proves obsolete or evolves rapidly? What happens when new entrants move into the energy market? What happens in the case of regulatory change?

“These are all questions that specialists in the energy industry are thinking about every day – while property industry professionals may not.”

Find out more about Yurika’s innovative energy solutions.