The United States had record-breaking renewable energy growth in 2024, with renewables—including wind, solar, geothermal, and hydropower—and battery storage making up 30 percent of the country’s large-scale power-generating capacity. Real estate is on board, positioned to confront some of the challenges facing clean energy in the U.S., especially as electricity demand is predicted to soar during the next five years.
For the building sector to hit the coveted target of net zero emissions by 2050, however, real estate cannot act alone. Collaboration is key, particularly with energy providers and utilities.
For too long, utilities and real estate owner/developers have operated in isolation with regard to renewable energy goals and programs. In the current landscape, closing this gap is essential for hitting emissions reduction goals. On-site renewables can cover only so much energy use by buildings, and off-site power purchase agreements (PPAs) can get complicated. Sourcing renewable power directly from a utility can fill the gap by presenting a streamlined, scalable solution for whole-building decarbonization.
To support collaboration, the Urban Land Institute (ULI) is convening regional utilities and real estate leaders to discuss challenges and solutions. The first event occurred during November 2023 in Denver, Colorado. Following up on its success, ULI recently hosted the second convening in Nashville, Tennessee, on February 3, 2025.
Facilitated by ULI’s Randall Lewis Center for Sustainability and ULI Nashville, the convening coincided with the Information Management Network ESG and Decarbonizing Real Estate Conference, which attracts hundreds of sustainability leaders nationwide. Plus, with its booming real estate market, an influx of transplants, and rising electricity demand, Nashville exemplifies the urgent need for green power solutions—making it the ideal host city for the ULI event.
The convening, numbering more than 30 attendees, featured experts from the Nashville Electric Service (NES), which provides electricity to Nashville County, Davidson County, and parts of six surrounding counties; and leading real estate owner/developers such as Prologis, Equity Residential, and DWS.
After introductions and networking came a level-setting discussion on the current state of green power, with perspectives from both the utility and real estate. Carla Nelson, engineering supervisor at NES, shared how, as an energy provider, it is helping to lead the charge toward a greener grid. Nelson noted that, through the Tennessee Valley Authority, the utility is on track to source 54 percent of its energy from carbon-free resources by 2030 and is working collaboratively on numerous green energy programs. They include the Green Invest Program, a utility-scale solar initiative that allows large customers to partner in bringing new-to-the-world green power to the Tennesee Valley and in generating renewable energy certificates to meet their corporate goals.
Real estate owner/developers Ethan Gilbert, ESG director at Prologis; Kyle Hendricks, head of sustainability at Equity Residential; and Hyon Rah, head of sustainability of real estate Americas at DWS, took the stage to discuss solutions and obstacles.
Cost proved to be a pervasive concern—green power must be economically viable for real estate owner/developers to gain traction. Return on capital and resident cost sensitivity are important considerations in multifamily estate, Hendricks noted.
Equity Residential focuses on cost-saving renewable projects such as on-site solar. Prologis, meanwhile, is pursuing an ambitious net zero target for Scopes 1, 2, and 3 emissions by 2040. The company is expanding its energy business in markets where production of green power makes financial sense, such as in jurisdictions with higher utility electricity rates.
Beyond cost, communication remains a hindrance. Real estate and utilities “speak different languages,” which makes collaboration around split incentives and contractual limitations tricky, Rah says. Misalignment on interconnection timing, data-sharing, and incentives further complicates efforts to integrate green power into commercial portfolios.
Separating into roundtables, attendees shared barriers to green power procurement, as well as to cost and communication, including limited data access, infrastructure constraints, on-site concerns with limited roof space, and grid-level concerns over upgrades associated with increased electricity demand.
Searching for Solutions
With all cards on the table, the discussion shifted to solutions. Several real estate owner/developers mentioned targeting on-site solar, which in turn brought up the pivotal question of “What makes a utility on-site solar-friendly?” The answer proved to be not straightforward.
“Utilities get a lot from utility-scale solar,” Rah noted. “Rooftop, even if it is industrial, is peanuts in comparison.” Real estate owner/developers around the room agreed. Nelson, however, noted that utilities are interested in rooftop solar projects, especially because utility-scale solar can take a long time to develop and implement. Communication about such priorities for both parties remains pivotal in orienting toward solutions.
The group affirmed that data-sharing is critical to model for new projects and to meet compliance standards. “It’s big to have a receptive utility partner who is willing to share data,” Gilbert noted. “That can reduce risk—if you can work with utilities and building occupants to get access to actual energy usage.” The real estate owner/developers in attendance confirmed the need for greater transparency in utility data-sharing to make better-informed energy decisions.
To end the day, participants were tasked with identifying the respective roles of utilities and owner/developers in green power procurement, and the room grew animated as they shared thoughts:
Utilities are ready to step up to the plate. Nelson responded to the exercise with resounding commitment to collaboration: “We work collaboratively with our customers to create and continually improve programs and solutions that meet their short-term and long-term needs.”
Clearly, real estate developers need utilities to share more data; clear guidelines; and offer cost-effective, scalable, renewable energy solutions. Utilities, in turn, need real estate leaders to engage with them and other parties to share specific challenges and needs. Both have the goal of renewable energy growth.
Finally, after closing remarks from the office of Nashville’s mayor that emphasized the importance of green power in the city, the group identified concrete next steps for collaboration. ULI was recognized as a crucial player in centralizing knowledge and developing resources to provide insights on effective utility/developer engagement.
The conversation is not just continuing—it’s also gaining steam. With new convenings already in the works, the path to a greener future is clear. ULI is returning to Denver at ULI Spring Meeting 2025 to discuss updates since the first utility and real estate convening.
Get involved. Share your experience in engaging with local utilities on green power procurement via feedback to [email protected] or [email protected]; visit our website for updates, to join a scheduled convening, or to sponsor a convening or workshop in your utility territory.
