1,250%: The Key Number Cannabis Companies Need To Know

We’ve made the pun plenty of times, but the reality is simply too strong to ignore. Cannabis is a growing industry, and companies across the United States are learning that their energy news isn’t just substantial, but often prohibitive. As big as cannabis is right now, we’re only scratching the surface of its true potential. Experts predict it to be a $47 billion industry by 2025. At the start of 2020, recreational marijuana use is legal in 11 states, while 33 states have medical marijuana laws firmly on the books. Recent local and state elections, too, indicate that more legalization is on the way, and the support of politicians at the federal level points to nation-wide legalization sooner rather than later. That astronomical growth comes in spite of many hurdles placed in front of young businesses. From inconsistent and changing regulations from county-to-county and state-to-state to variable access to investment, to supply chain and distribution issues, it hasn’t been smooth sailing for many growers. Perhaps one of the biggest challenges is energy. The electrical impact of marijuana cultivation is massive. Producing one pound of cannabis produces requires roughly 2,000 kWh, which is the equivalent of two and a half months of energy consumption by a normal household. That’s big. Multiply that to industrial-levels of production in facilities that can fill thousands of square feet and you can begin to see just how much strain cannabis could put on the grid. In fact, marijuana caused seven blackouts in California alone back in 2015. The demand is high now, but it’s only expected to grow. Canada, for example, expects cannabis power consumption to increase by 1,250% between 2020 and 2024. That would make cannabis production alone a total of 1% of the country’s entire energy market. Not only is it massive, but the source of that huge energy draw is also primarily fossil fuels. With a rise in demand will come a rise in pollution just as the world looks to drastically reduce its carbon footprint to fight climate change. By waiting for governments to shift grid-scale electrical production to renewable sources, the world might be putting a nail in its own coffin. Instead, growers are investing in themselves to incorporate renewable energy created from wind and solar, as well as integrated energy storage systems to offer flexibility. Retrofitting isn’t a viable option; many growers say the expense of trying to work with older lighting and irrigation systems isn’t cost-effective, and replacing the whole set-up makes more financial sense. Lighting is a huge element to both a healthy crop and to energy efficiency. With the switch flipped on between 18 and 20 hours a day, light fixtures account for approximately 70% of electricity consumption. We’ve been working with growers to create smart, dynamic systems that use the most efficient materials and intelligent automation to control climate. If over two-thirds of consumption comes from a single source, it’s where we can make the biggest difference. We’re working with growers across the state and around the country to implement the sort of systems that will keep companies competitive, sustainable, and comfortably within the patchwork of local guidelines. Getting started? Start with a call to Keen Technical Solutions.