Hot Button Topic: Navigating Energy Solutions (VenuesNow Conference Recap)

There are a number of spinning plates one deals with when operating a venue that hosts live entertainment, from seating to food and beverage to air conditioning to sound. It takes a village to put on a sports game or a concert in a building, but it also comes with a hefty bill.

That bill is estimated to significantly go up in the future because of the ever-evolving energy market, and it’s an issue that a group of executives tackled at the VenuesNow Confernece during a panel titled Hot Button Topic: Navigating Energy Solutions.

“There’s cataclysmic things coming in the energy market,” Michael Decaluwe, president of Nania Energy Advisors, said at the conference, which was held at Conrad Las Vegas at Resorts World. “Demand is the largest source in the near term. It’s estimated that by 2030, demand is going to increase by 25% and 80% by 2050.”

There are various factors driving this demand, from data center construction to crypto mining to EV charging, Delacuwe added. Larger arenas are currently paying upwards of $2 million a year, and with a 30% spike, a venue’s utility expense could go up by $600,000.

Delacuwe suggests that effective supply procurement and the installation of onsite generation are most impactful, but it isn’t so easy for venues in densely populated areas and regulated states. Kelly McGrath, general manager of Grand Casino Arena in St. Paul, Minnesota, says it’s not easy for venues to plan for the reality in increasing energy costs that Delacuwe presented because solutions like solar panels aren’t options for aging buildings.

Utility rebates can offset the costs, but every building is a different case. Nicholas Gordon, head of business analytics at Future Energy Solutions, says his company performs an audit of the site to determine where venues can get the most savings. Some changes in lighting, HVAC and even restrooms can go a long way and not even incur out-of-pocket expenses for venues.

“Typically, what we see is the old technology provides enough energy savings that we are actually able to fully fund the project from just those savings,” Gordon said. “So, we don’t take any out-of-pocket expenses from each month that you receive energy savings on your electricity bill. We will take a portion of that savings, and you will keep a portion of that savings.”

But not all buildings are the same. All the aforementioned factors are being considered by Charlotte’s Spectrum Center as it goes through extensive renovations. Ashley Gladney, sustainability program manager for Charlotte Regional Visitors Authority, which manages five facilities, says the city has set carbon neutrality goals that directly reflect the CRVA venues, including the 70-year-old Bojangles Coliseum, and it can be challenging to reduce carbon at such a venue compared to a 20-year-old arena like Spectrum Center.

Achieving those goals and getting certification is no easy feat. Jamy Bacchus, associate principal at ME Engineers, says that there is no real benchmark from the Department of Energy, so buildings have to work with other organizations for certifications, and that can be difficult because of various factors like the number of events, scheduling and climate zones.

That’s why Green Operations & Advanced Leadership, or GOAL, was launched three years ago by Oak View Group, Pollstar’s parent company, and other venues and sports groups like the Atlanta Hawks and State Farm Arena and Fenway Sports Group. Kristen Fulmer, head of sustainability at OVG and GOAL, said the organization wanted to “help to recognize not the building’s performance as the leadership but the tactics you’re taking to achieve those things and recognize that leadership so that a building that is 35 years old or a building that’s 2 years old can actually be doing the same things operationally, be recognized in the same way.”

It’s a lot to consider for old and new venues, but help from the companies Bacchus, Decaluwe and Gordon represent and GOAL are doing their part to assist buildings in finding ways to not only save costs but also help the environment.