The balancing act: sustainability and power in I&L developments
Sustainability was at the heart of the I&L sector in 2025, with moves across the industry to reduce emissions and carbon footprint. This was shown in no small part by KSP’s sale of PR1, a 60,000 square foot warehouse in Park Royal, to Tritax London Logistics Fund. The £43.9 million deal was a sign of the times. PR1 has capacity for an all-electric fleet and sustainable power output, attributes that are in high demand as a reflection of that trend.
I’m expecting fleet sustainability and power generation to reshape the sector in tandem, in 2026 and beyond. These two issues are linked by sustainability progress alongside issues with power supply and generation, making them two sides of the same coin.
The power paradox
It’s widely understood that the transition to electric vehicles is essential for meeting net zero targets, but what’s spoken about far less is the demand this places on power. The likes of electric HGVs and delivery vans need a large power supply, as well as charging points to draw from. This means the power requirements for operators running large and growing fleets are increasing.
This comes at a time when grid capacity in London’s industrial spaces is increasingly constrained. Facilities that can’t guarantee reliable power risk becoming operationally unviable, regardless of location or specification. Developers must adapt to meet this new wave of demand, meeting the needs of future occupiers.
Regulatory reality
Compliance in the sector is now more important than ever. From the government’s commitments to net zero to the tightening of emissions standards and sustainability reporting, buildings designed with sustainability at their core provide occupiers with clear advantages.
Putting the infrastructure in place which doesn’t just meet – but surpasses – regulations and supports sustainable operations across our sites not only helps meet standards but gives us the competitive edge.
Development through diversification
From solar panels to battery storage systems, KSP’s developments generate and store significant portions of their own energy, supporting the net zero transition and reducing exposure to volatile, geopolitically driven energy costs. This adaptability strengthens sustainability and improves viability at a time when land values remain high.
Solar power delivers both sustainability and commercial benefits. It cuts emissions while increasing self-sufficiency and energy security, easing operational pressures created by grid capacity constraints.
With stubborn economic forecasts and growth minimal, resilient solutions are needed to maintain profitability through this period of stagnation. From warehouses to data centres, adding on-site power capacity gives occupiers confidence, even as energy costs continue to fluctuate.
Our next‑generation logistics sites are designed to generate the power required for electric fleets through sustainable means like solar, delivering performance gains and a clear competitive advantage for occupiers.
A future rooted in flexibility
From Park Royal and Enfield to Charlton, Croydon and Mitcham, KSP is applying sustainable principles to our developments across the capital – not as last minute additions, but as fundamental design features, including maximum solar panel coverage, addressing the issues facing developers and operators in the I&L sector.
For the next year and beyond, we’ll be working to scale up our model while keeping flexibility at its core. The occupiers and investors who understand that power access and sustainability are inseparable will be those who define the next phase of the logistics market.
The future of I&L belongs to buildings that help generate the energy their operations demand. That’s not a sustainability statement. It’s a business imperative.
