‘Don’t waste logistics assets’ scope for power generation’

Owners and occupiers of logistics real estate could be missing an opportunity by allowing third party companies to benefit from the potential for electricity generation that the large roof areas of modern warehouse buildings provide, particularly as energy costs are escalating at present.

The lost opportunity is likely to be exacerbated by the fact that logistics operators’ electricity needs are growing, because of increasing use of electric delivery vehicles, electronic sorting systems etc.

Producing energy for use on site could also free up power generation capacity elsewhere for more appropriate uses.

“We think the best thing is not to rent out your roof to a company, because that’s not self consumption, that’s only production. You have to do it behind the meter and then the building is the most sustainable and you have an energy source,” said Joost Leendertse, founder & CEO of Netherlands-headquartered VerusSol.

He also explained that while another company may be using your roof to make money from electricity generation, you will then have to buy power from the grid at a higher price with tax also.

Self generation also has the benefit of making the tenant carbon neutral. Electricity is likely to be one of their main costs “so cheap, green, self-produced energy will absolutely make their case,” Leendertse told Real Asset Insight’s Richard Betts.

But he added that forthcoming regulation, that will range from the regulatory to the mandatory, will mean that whether power is produced behind or before the meter will make a big difference.

Click on the video to watch the full interview or listen to the podcast below.