Westbridge Advisory (Westbridge), a leading energy and sustainability advisor to the real estate industry, has advised Hines Real Estate (Hines), a property manager, developer and investor, on optimizing sustainable power supply for properties managed by Hines.
Westbridge further developed Hines' green power sourcing strategy in tranches to align with the future requirements of the CRREM pathway. As part of this process, Westbridge has brokered a more climate-friendly power supply on the basis of an off-site Power Purchase Agreement (PPA).
A PPA is a long-term direct contract model between the energy producer and a buyer that guarantees stable prices and direct guarantees of origin for the energy. A key aspect of the PPA between Hines and Westbridge is the use of wind turbines in Germany. In contrast to the certified electricity supply, in this case the energy is only generated when it is actually consumed. The use of sustainably generated energy that is actually fed into the German power grid is a key element of Hines' sustainability strategy and the achievement of its Net Zero target by 2040.
Through the cooperation with Westbridge, Hines has so far purchased green electricity for general consumption for around 30 assets. The PPA share currently stands at 70 percent. This figure is particularly high in relation to the purchase profile of commercial properties.
Simon Szpyrka, Managing Director at Westbridge, emphasizes: "Hines' commitment represents a significant step towards carbon neutrality in the German real estate sector. The use of wind energy is one of the most sustainable energy solutions available to us in Germany."
Ulrike Dreykluft, Director ESG at Hines, added: "The consistent transformation of our portfolio towards carbon neutrality is a key focus for Hines. By ensuring that our Scope 2 emissions are reduced, we are making an active contribution to climate protection while meeting the requirements for low-emission green electricity in accordance with CRREM regulations. The cooperation with Westbridge will enable us to reduce our CO₂ emissions by around 16,360 tons over the term of the contract. As part of the PPA, we also offer our tenants the option of covering their electricity requirements via the PPA."