What is the energy transition for production of cannabis?
First and foremost it is a disruption that other high intensive energy-use industries will take note - as some bold change is mandatory. Cannabis producers have a vital role to play in the energy transition, and are among key players on the global stage that must lead the energy transition by reducing its reliance on fossil fuels by 50% in the next ten years.
Cannabis Producers will disrupt the cost of cannabis production using emerging new energy sources. Leaders in cannabis will make structural and permanent change in the supply, demand, and the energy mix and will benefit as the pricing of cannabis continues to lower.
Cannabis production will transition, and switch away from fossil fuels for the lowest cost of operational efficiency using renewables and clean resources (solar, wind and biofules to name a few). More efficient use of energy using technology such as LEDs, DC Microgrids, water reuse, hybrid Greenhouses, efficient sensors for smart grows as well as novel use of biofuels will drive leaders into building climate smart cannabis brands.
How will cannabis make the current energy transition?
Cannabis producer’s use of renewables is lagging behind its dependence on the grid and fossil fuels, but, in time, the two will converge- I propose 50% reduction in the next ten years. This is the ‘point of no return’, and it is closer than we ever expected, and leaders of cannabis are now welcoming the future of alternative energy. This blog will continue to follow and highlight clients, and trends we see, and Zam Energy hopes to collect players and drive the conversation with gatherings designed to move the needle faster as climate change is enveloping us in a must move now shift.
What does the energy transition mean for cannabis?
The cannabis industry can set a standard for energy intensive industries to witness, and show strong economic cases for the use of renewables. Creative financing, and use of incentives are in play, but the core driver is lowering the cost of operational expenses, and gaining resiliency from grid interruptions, all key influencers to scale with highly efficient operations.