Why Utilities Are Becoming Developers

The U.S. energy sector is undergoing a historic transformation, driven by soaring electricity demand from new technologies, ambitious corporate sustainability goals, and major federal roadblocks. This has triggered a nationwide land rush, placing real property at the center of the energy transition conversation in the U.S. With the existing grid struggling to keep up with increasing power demands, utilities are aggressively shifting from passive energy procurement to direct real estate acquisition and development. For corporate leaders, understanding this new utility strategy is essential for strategic site selection and competitive positioning.

The Utility Shift to Real Estate and Development

Historically, regulated utilities often met renewable energy needs through long-term power purchase agreements, or PPAs, with independent producers. Today, utilities are increasingly pursuing direct asset ownership.

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