• The agreement aims to provide locally produced renewable energy to both the Property Owner Associations of its shopping centres and their retailers at a competitive fixed price, with no requirement for them to provide up-front investment

• Up to 40 MW of capacity will be installed across Castellana’s portfolio of shopping centres, with panels placed on roofs and parking shelters

• The first phase of the project is already under way, with an initial investment of €2 million shared equally between the two companies

• Castellana Green takes the real estate company into new territory as it seeks to decarbonise its property portfolio and cut scope 2 and 3 CO2 emissions in line with its ESG strategy

Listed retail sector specialist Castellana Properties has joined forces with Sunbird Solar, a provider of solar energy and energy storage solutions for shopping centres. The two companies have agreed a joint venture to roll out photovoltaic panels across Castellana’s portfolio in an initiative dubbed “Castellana Green”.

This ambitious and innovative project will eventually allow Property Owner Associations of its shopping centres and their retailers to access locally produced renewable energy at a competitive fixed price. No initial investment will be required from users, and retailers will be under no obligation to extend their existing leases.

The project is intended to deliver an installed capacity of up to 40 megawatts across Castellana’s portfolio of shopping centres, with panels placed on roofs and parking shelters. Sunbird brings extensive experience in the photovoltaics industry, covering development, financing, design and construction.

The agreement marks the launch of the first phase, with an interim target of 2 megawatts of installed capacity split between five shopping centres: Puerta Europa, El Faro, Vallsur, Habaneras and Granaita. The electricity produced will be used on site to provide lighting, air conditioning and other services to common areas in each centre. So far, the partners have made an initial investment of €2 million, split equally between the two. The interim target is 3,258 MWh of clean, locally produced energy, avoiding 527,855 kg of CO2 emissions — equivalent to planting 1,760 trees.

The joint venture marks a new direction for Castellana Properties as it pursues its ESG strategy and promises to deliver a range of environmental benefits. A significant step towards decarbonisation, it will reduce Castellana’s scope 2 and 3 CO2 emissions while keeping its portfolio in line with the Paris Agreement, as assessed by CRREM (Carbon Risk Real Estate Monitor).

Jorge Orondo, Senior Energy & Utilities Manager at Castellana Properties, commented: “The retail sector is constantly evolving, and we work tirelessly to keep our centres at the forefront of sustainability as standards and expectations rise. Castellana Green is one of a new generation of innovative, ambitious projects that are lighting the way to a smaller carbon footprint. These initiatives represent an enormous opportunity to work together to find the best solutions, so we can bring down our energy consumption and meet the goals set out in the 2030 Agenda”.