Burges Salmon’s recent report discusses energy challenges and opportunities for industrial and logistics sectors.
- The need for energy resilience is growing due to rising energy costs and environmental awareness.
- Industrial buildings are vital in the economy but face high energy demands and operational costs.
- Meeting the UK’s 2050 Net Zero targets is crucial for the sector’s success.
- The report highlights the importance of onsite energy generation as a futureproofing strategy.
Burges Salmon’s new report illuminates the pressing energy challenges confronting industrial and logistics developers amidst escalating energy prices and heightened environmental awareness. The report underscores the critical need for energy resilience, particularly as these sectors strive to align with the UK Government’s Net Zero ambitions. Industrial and logistics facilities have surged in importance due to the ecommerce boom, becoming indispensable intermediaries in supply chains, yet grappling with significant energy consumption pressures.
The mounting costs and sustainability concerns have shifted energy supply from a secondary consideration to a primary concern. Buildings of substantial size invariably demand vast energy resources, exacerbated by requirements for heating, lighting, and operational activities. Historically, energy expenses were a minor element of overall operational costs, but now they are pivotal due to skyrocketing prices and increased scrutiny on ecological impacts.
Achieving energy security, affordability, and sustainability are paramount for the continued success of the industrial and logistics sectors. Futureproofing assets to attract tenants and comply with regulations, while meeting the 2050 Net Zero objectives, is a non-negotiable imperative. The report identifies the considerable opportunities present in onsite energy generation, offering a viable path for developers and investors to adapt and thrive amidst these challenges.
Contributors to the report, including influential figures from the Greater London Authority and British Property Federation, elucidate that although a universal solution is elusive, onsite generation holds promise for cementing energy resilience. This strategy aligns with increasing regulatory demands and tenant expectations.
Ross Polkinghorne, from Burges Salmon, articulates the tangible challenges facing the sector, stressing the momentum in advancing on-site renewable energy initiatives. “Futureproofing is essential,” he asserts, acknowledging the sector’s proactive steps towards Net Zero objectives, albeit amidst uncertainties regarding grid capacity and costs.
Burges Salmon’s report crucially examines the sector’s challenges and underscores onsite energy generation as a strategic imperative for achieving energy resilience and meeting Net Zero targets.
