Electrifying and retrofitting the millions of buildings in Canada is a “massive, investible opportunity,” says Steven Pacifico, associate executive director of the Building Decarbonization Alliance (BDA).

“Right now, about $6 billion is being invested in the building sector towards retrofits and electrification. We need to triple that,” Pacifico told The Energy Mix. “And why would investors do this? Because it’s going to make them a lot of money.”

Pacifico said 20-plus years of evidence shows that green buildings command a green premium: “They have higher rents, higher property values, happier tenants and homeowners.”

To date, we’ve seen buildings as “kind of passive investment assets and high energy users,” he added. But “building heating is going to be one of the biggest things we have to tackle in decarbonizing our economy.” The solution is a move toward “smart”, electrified buildings that function as “grid-enabled infrastructure”, with smart controls to reduce consumption during periods of peak electricity demand and onsite power generation.

“Most exciting is the bidirectional flow of electricity,” Pacifico said. “If there is a peak incident, buildings can actually contribute their electricity back into the grid by curtailing their energy use and providing their supply,” an ability that will become “a cornerstone of our economic electrification.”

The Building Decarbonization Alliance is working to put that opportunity on the radar of governments as an industrial policy priority that mobilizes public investment, private finance, and institutional leadership, Pacifico said. The alliance sees building electrification as a “no-regrets” choice for households, a business opportunity for commercial buildings, and an investment opportunity where the value stays in Canada.

That’s because buildings are “concentrated in community,” and “they’re going to create hundreds of thousands of jobs in communities,” he said.