Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year, according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions along with New Frontier Data and the Resource Innovation Institute. With this amount of energy being expended, cleaner and more efficient options are being sought after by cannabis producers. Indoor growers are looking to cut spiraling electricity consumption with custom-built microgrids in U.S. states where cannabis cultivation is legal.
While several microgrid companies are working towards a solution, there is one company that already has it. CleanSpark, Inc. (CLSK) has developed a custom power solution and mPulse software for cannabis producers that cuts the monthly electricity bill of indoor grow-houses by up to 82%.
Their latest press release stated, "(The company) is currently focusing our marketing efforts on the largest users in the cannabis market, the agricultural (grow) facilities." CEO S. Matthew Schultz also stated, "opportunity in the cannabis market is unprecedented due to the high energy usage of these facilities in both the US and Canada. In many cases our solution is capable of virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility. The cannabis market continues to grow at a rapid rate, and as a result the significant and growing energy demands of the industry also continue to increase.
"We are currently focusing our marketing efforts on the largest users in the cannabis market, the agricultural (grow) facilities. In addition to cost savings, the loss of power can be extremely detrimental to an agricultural (grow) facility's production and an extended outage can even cause a full loss, especially when the facility is growing a medically-certified crop. Energy resiliency is critical for these operations. We believe our solution will find a strong foothold in the market as many solutions currently available to the market provide either resiliency or energy savings but very few provide both."