18 / 08 / 21 - 2 minute read
The recent Intergovernmental Panel on Climate Change report starkly highlights the pressing reality of climate change and the need to focus on sustainability in the business world. PATRIZIA is aware of real estate’s impact on the environment and is determined to maximise sustainability throughout its portfolio while delivering value for our clients.
To this end, the company has been rolling out a green energy programme across Europe since 2017, with Spain the latest market to benefit. The programme harmonises energy procurement by reducing suppliers and switching exclusively to energy generated from renewable sources.
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Starting in 2022, buildings in Barcelona, Madrid and Malaga will receive power from a single supplier – a reduction from four separate electricity providers and two natural gas suppliers.
“This is an important step as none of our incumbent providers could deliver sustainable energy reliably,” says Jörg Müller, Head of Asset Operations Excellence at PATRIZIA.
Between 2022 and 2025, switching to a green electricity supply will save 349 tonnes of CO2 emissions each year. A carbon-neutral gas supply will save a further 100 tonnes of CO2 emissions annually across the same timeframe.
The financial impact will be mixed. Renewable and non-renewable energy prices are rising across Europe for several reasons, including higher carbon prices and increased demand. Prices in Spain have recently hit record highs. The country is particularly vulnerable due to its reliance on liquified natural gas, increasingly in demand in Asia.
Nevertheless, by switching to green natural gas from a single supplier, PATRIZIA will save a reduction in costs of 14% between now and the end of 2025. For electricity, the net energy costs will rise by 17% across the same timeframe.
PATRIZIA’s green energy programme started in Germany and the Netherlands before rolling out in France, Italy, Denmark and Sweden.
“There’s no question: bundling energy suppliers and switching to renewable energy has brought extremely positive results so far,” says Jörg Müller. “We expect Spain to be no different.”
The next country on the list for PATRIZIA is Poland, adds Müller, with further details to be announced later this year.