GTC has finalised a three-year electricity purchase agreement under a PPA structure. As a result, all GTC office buildings and shopping centres in Poland will be powered predominantly by electricity sourced directly from renewable energy providers – photovoltaic installations and wind farms. The agreement was concluded with Ekovoltis, one of the leaders in green energy trading. The transaction was advised by Westbridge, a company specialising in key areas of the energy transition.
A PPA (Power Purchase Agreement) is a long-term contract concluded between an electricity producer (or intermediary) and the end customer. Under such an agreement, the customer receives a fixed amount of energy, at a fixed price, over a defined period and from a specified source. In the case of the agreement between GTC and Ekovoltis, 62 percent of the energy supplied will come from renewable sources, delivered directly from photovoltaic installations and wind farms.
“Energy is one of the dominant cost items faced by tenants and owners of commercial buildings. The agreement we have signed reduces electricity costs and limits price risk, providing greater security for the users of our properties. Purchasing energy that in large part genuinely comes from renewable sources is also an important step towards decarbonising GTC’s property portfolio in Poland. This initiative fully aligns with our ESG strategy and the expectations of our stakeholders,” says Witold Rafalski, Head of Asset Management at GTC.
In Poland, GTC currently manages a portfolio of 16 office buildings with a total area of nearly 200,000 sqm, located in Warsaw and the largest regional cities. The company also owns two major shopping centres – Galeria Północna in Warsaw and Galeria Jurajska in Częstochowa – with a combined gross leasable area of over 110,000 sqm.
“From the very beginning of the process, GTC clearly communicated that the key criterion in selecting the energy procurement structure was real environmental impact and alignment with ESG goals, rather than price alone. This approach had a significant influence on the final shape of the PPA and was one of the factors behind its success. As transaction advisor and broker, we supported the client in designing a solution that combines cost security with an actual share of renewable energy and measurable decarbonisation benefits for the real estate portfolio,” says Tomasz Kwiatkowski of Westbridge.
Under the signed agreement, the remaining portion of electricity will be purchased in an offset formula, with guarantees of origin, via the Polish Power Exchange.
