Growthpoint Properties, a leading real estate company, has inked a historic Power Purchase Agreement (PPA) with Etana Energy for an annual supply of 195 GWh of renewable energy. This amounts to 32% of Growthpoint’s total current annual electricity consumption, marking a significant stride towards sustainability.
In November 2023, Growthpoint entered into a PPA with Etana Energy, a licensed electricity trader, to facilitate the wheeling of electricity to its commercial properties across various jurisdictions. This groundbreaking deal represents the country’s first multi-jurisdiction, multi-building, multi-source renewable energy wheeling arrangement, enabling tenants to access green energy and reduce carbon emissions.
Under the agreement, Etana Energy will cover 70% of the power consumption of Growthpoint’s participating buildings, with the option for some buildings to offer tenants the opportunity to purchase 100% renewable energy for a more active role in carbon reduction.
The renewable energy mix includes predominantly wind, supplemented by hydro and large-scale solar electricity. This diverse combination ensures comprehensive coverage of Growthpoint’s energy needs throughout the day and night.
A key element of the agreement grants Growthpoint exclusive rights to procure approximately 30GWh annually from a 5MW hydroelectric power plant developed by Serengeti Energy. Located near Clarens in the Free State, South Africa, within the Lesotho Highlands Water Scheme, the plant is strategically positioned to provide reliable baseload power, operating 24/7. The hydroelectric power plant, expected to commence operations on July 1, 2025, is part of the LHWS Phase 2 future expansion.
Following the hydro plant’s commissioning, Etana will initiate the inclusion of wind and additional solar production from its portfolio of renewable energy projects connected to the national electricity grid. Etana Energy specializes in providing cost-competitive clean energy from large-scale renewable projects and has collaborations with Independent Power Producers (IPPs) for various wind, hydro, and solar projects set to come online between 2025 and 2026.
This strategic collaboration not only advances Growthpoint’s commitment to sustainability but also sets a precedent for innovative and comprehensive renewable energy solutions in the real estate sector.
