Energy accounts for approximately 15% of total warehouse operating costs, and heating is the largest source of energy consumption — 39% of total usage. In Latvia, where energy prices are the highest in the Baltics, choosing the right warehouse can mean thousands of euros in savings per year.
Why is energy efficiency critical for tenants in Latvia?
In Latvia, gas prices in 2024 were €11.38/100 kWh — higher than in Lithuania (€7.66) and Estonia (€8.58). Electricity prices reached €29.48/100 kWh. Since the 2022 energy crisis, gas prices remain approximately 2x higher than pre-crisis levels. This means every kWh saved in Latvia is worth more than elsewhere in Europe.
Old vs. new warehouse comparison
Old buildings (pre-2000) consume 150–250 kWh/m² per year for heating due to poor insulation (U-value above 1.0 W/m²K). Modern Class A warehouses consume only 40–50 kWh/m² per year thanks to high-quality insulation (U-value 0.18–0.24 W/m²K), heat-recovery ventilation and efficient heating systems.
Practical example: 1,000 m² warehouse in Latvia
Old B/C class warehouse: Rent €3.00/m²/month = €36,000/year. Heating: 150 kWh/m² × €0.11/kWh = €16,500/year. Electricity: 80 kWh/m² × €0.15/kWh = €12,000/year. Total energy costs: €28,500/year. Total occupancy cost: ~€64,500/year.
New Class A warehouse: Rent €5.30/m²/month = €63,600/year (+77%). Heating: 40 kWh/m² × €0.11/kWh = €4,400/year. Electricity: 50 kWh/m² × €0.15/kWh = €7,500/year. Total energy costs: €11,900/year (–58%). Total occupancy cost: ~€75,500/year.
Result: Rent is 77% higher, but the energy saving (€16,600/year) offsets most of the difference. Moreover, the tenant gets a modern, EU-compliant building.
Impact of LED lighting
Installing LED lighting is one of the fastest-payback investments in a warehouse. According to an analysis of 50 commercial LED projects (Source: U.S. Department of Energy LED Case Studies), the average payback period in warehouses is 1.9 years with a 50–75% energy saving. LED also reduces maintenance costs by 60–80% thanks to a 50,000–100,000 hour lifespan.
A Prologis case study in a 74,000 m² distribution centre showed a 41% electricity saving after switching to LED. (Source: Prologis ESG Impact Report)
BREEAM and LEED certified warehouses
A Cushman & Wakefield study (1,800+ buildings, 5 years) (Source: Cushman & Wakefield, EMEA Sustainability Report) found that BREEAM-certified warehouses cost 19% more to acquire, but operating costs are 20–30% lower. An average investment of €113/m² in green upgrades yields €15/m² in energy savings per year — a payback of 7.5 years.
EU Energy Performance of Buildings Directive (EPBD) — what it means for tenants
The EU directive adopted in 2024 sets strict requirements: by 2030, 16% of the worst-performing non-residential buildings must be renovated; by 2033 — 26%. From 2030, all new buildings must be zero-emission. For tenants in old buildings this means: potential construction disruption risk, renovation costs passed on to rent, and non-compliance with client and insurer requirements.
Rooftop solar panels on warehouses
In Latvia, the levelised cost of solar energy (LCOE) is €0.08/kWh — nearly half the grid tariff of €0.15/kWh. Warehouse roofs are ideal for solar panels — large, flat and sun-facing. DSV Landskrona (Sweden) installed a 14 MWp system on a 100,000 m² warehouse roof — only 25% of the generated energy is needed for the building, the rest is sold to the grid.
In Latvia, the payback period for rooftop solar is approximately 10 years, but rising electricity prices are shortening this period.