AnnaStills/Envato
At this year’s Expo Real in Munich, logistics real estate emerged as a key player in Germany’s drive toward a sustainable, fossil-free future. At an event organized by Panattoni, a leader in logistics and industrial real estate development, and SUNROCK, a major developer of photovoltaic systems for large-scale installations, the panel discussion examined the role of logistics facilities in the energy transition.
Titled "Logistic Real Estate as the Enabler of the Energy Transition for the Economy of the Future," the session included insights from Fraunhofer’s Dr. Anna Heimsath, LOGIVEST CEO Kuno Neumeier, Jeroen Gerritsen of Panattoni Belgium & Netherlands, and Sunrock Germany’s Georg Brenninkmeijer, moderated by Charles Kingston, publisher of REFIRE.
Dr. Heimsath opened the well-attended event with a keynote on Germany’s ambitious climate targets, aiming for CO2 neutrality by 2045. She highlighted the viability of photovoltaic (PV) systems as a competitive, resilient energy source that already rivals conventional power options. “Decisive action is essential to achieving a fossil-free economy,” she noted, emphasizing that the property and logistics sectors must take bold steps toward renewable energy integration. Battery storage, in particular, offers a path to more flexible energy solutions, enabling properties to meet their own energy needs and become less dependent on the grid.
Industry reports widely acknowledge that PV installations can significantly reduce operational energy costs for logistics facilities by covering up to 60% of their energy needs, with battery storage boosting efficiency further. Also accepted is that combining PV systems with battery storage can raise energy self-sufficiency significantly, covering up to 80-90% of total needs. This approach helps logistics facilities manage energy costs more effectively by storing excess power for peak price periods.
Addressing logistics sector challenges
The discussion then moved to the logistical and regulatory challenges facing the sector. With energy costs soaring, logistics operations are under pressure to integrate energy management into their processes. The panelists underscored the potential of PV systems in not only supporting green energy goals but also powering on-site e-mobility charging stations. As regulations tighten, an integrated approach that includes PV and battery storage can offer local energy generation, greater independence, and cost efficiency while fulfilling ESG requirements.
Kuno Neumeier of LOGIVEST pointed out that, between 2012 and 2022, Germany has seen the creation of around 30 million square meters of roof space suitable for PV installation. “If equipped, these rooftops could generate up to 2.5 terawatt-hours of solar energy—enough to power Germany’s electric vehicle fleet for 18,000 kilometers annually and offset nearly one million tonnes of CO2,” Neumeier explained. Yet, not all buildings are PV-ready, and many lack the necessary grid infrastructure to fully utilize generated energy. Simplifying regulatory processes and increasing grid flexibility are seen as vital steps in maximizing PV’s potential. The panel highlighted that, while PV systems can cover up to 60% of a facility's energy needs, battery storage can boost this figure by an additional 15–25%, creating significant value for property owners and tenants alike.
Showcasing PV’s transformative potential
Jeroen Gerritsen illustrated PV's transformative potential with Panattoni Park Heerlen in the Netherlands, where Sunrock has installed a solar system across 65,000 square meters. This installation not only powers the park’s operations but also supplies clean energy to the Ikazia Hospital in Rotterdam, over 150 kilometers away. “This example shows how logistics properties can assume a new, sustainable role that goes beyond the immediate tenants and owners,” Gerritsen explained.
PV installations typically pay back within 7-10 years, offering annual returns of 10-15%. For logistics operators, these savings go directly into boosting profitability and asset value. PV systems also aid in meeting stringent ESG standards, lowering carbon footprints, and enhancing appeal to eco-focused tenants—vital advantages as logistics companies face rising expectations around emissions and sustainability.
But challenges persist. Grid capacity constraints, particularly in the Netherlands, are a limiting factor. According to Brenninkmeijer, 100% of the available grid capacity is already in use. He emphasized the need for solutions that accommodate large-scale installations and called for governmental support to navigate these infrastructure bottlenecks. “To make real progress, we need collaboration with policymakers,” he said, adding that grid expansion and more accessible feed-in licenses are necessary to unlock PV's full potential.
A path forward in logistics real estate
In summary, the logistics real estate sector is fast evolving from a mere facilitator to a dynamic enabler of Germany’s green transition. With photovoltaic systems and battery storage increasingly essential to meet ESG goals and operational resilience, logistics properties are positioning themselves as a key pillar in the nation’s sustainable infrastructure. Panelists were clear that, while challenges persist—from regulatory roadblocks to infrastructure limits—the commitment to innovation and collaboration offers a promising pathway forward. As Dr. Heimsath aptly concluded, overcoming these hurdles will require both vision and decisive action, ultimately redefining logistics real estate as a cornerstone of a fossil-free future.
