Growthpoint Properties is set to transform the commercial real estate landscape by introducing a clean, green energy benefit scheme called e-CO2 at ten properties in Sandton, Johannesburg. This milestone is the next step in the rollout of its innovative renewable energy transition – a first for South Africa.
With all major elements already in place for the scheme to debut in July 2025, Growthpoint will deliver the first green energy to its office buildings through wheeling, reducing carbon footprints and generating Renewable Energy Certificates (RECs) for tenants using the latest blockchain technology.
The Growthpoint e-CO2 green energy benefit scheme (e-CO2 stands for electricity minus carbon dioxide and is pronounced “eco two”) is an innovative solution that delivers green energy directly to commercial properties through wheeling from multiple renewable sources—water, wind, and sunshine. It is made possible by Growthpoint’s Power Purchase Agreement (PPA) with Etana Energy.
At the end of 2023, Growthpoint signed the landmark PPA with licenced electricity trader Etana Energy to wheel electricity generated by independent power producers to its buildings in several locations nationwide. Wheeling involves the buying and selling sustainably sourced electricity between private parties using the existing transmission or distribution network.
Since this can be done over long distances, it gives more users greater access to renewable energy, an especially scarce commodity for offices in central business districts. Buildings in these areas, almost without exception, have insufficient roof space for meaningful onsite renewable energy production.
Through the agreement with Etana Energy, Growthpoint has secured exclusive rights to purchase all of the roughly 30GWh that will be generated annually by a hydroelectric power plant developed and operated by Serengeti Energy. The hydroelectric project, which will effectively generate 24/7 baseload power, is located on the Ash River within the Lesotho Highlands Water Scheme (LHWS) near Clarens, in the Free State. Construction of the plant is well underway as it is readied to commence operation officially on 1 July 2025.
Following this, most wind and solar production from Etana’s signed generating portfolio will be added to the grid in 2026, and further sources could be added in the future.
Paul Kollenberg, Growthpoint Properties Head of Asset Management: Offices, says, “This agreement secures us a significant 195GWh of clean electricity annually for Growthpoint and our tenants at specific buildings and represents an important step forward in our sustainability journey. Over the past decade, we have prioritised the advancement of environmental, social and governance (ESG) strategies, and we understand how important it is for our clients to do likewise.”
Users at qualifying properties will receive their power, as they always have, through the existing power grid. While this does not directly shield them from load shedding, Growthpoint is increasing generating capacity in the larger South African electricity network, reducing the likelihood of load shedding in the long term.
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