Growthpoint Properties is introducing a clean, green energy benefit scheme called e-CO₂ at ten of its properties in Sandton, Johannesburg – a first for South Africa and the next step for the REIT in its rollout of its innovative renewable energy transition.
The scheme will debut in July 2025 with Growthpoint delivering the first green energy to its office buildings through wheeling, reducing its carbon footprint and generating Renewable Energy Certificates (RECs) for tenants using the latest blockchain technology.
The Growthpoint e-CO₂ green energy benefit scheme (short for electricity minus carbon monoxide) will deliver green energy through wheeling from multiple renewable sources – water, wind, sunshine – directly to its commercial assets, made possible by its 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 across the country.
Since this can be done over long distances, it gives more users greater access to renewable energy, which is an especially scarce commodity for offices in central business districts. Buildings in these areas, almost without exception, have insufficient roof space for meaningful on-site renewable energy production.
Through the agreement with Etana Energy, Growthpoint has secured exclusive rights to purchase all 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 the 1st of July 2025.
Following this, most of the wind and some solar production from Etana’s signed generating portfolio will be added to the grid from 2026, and further sources could be added in future.
“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,” comments Paul Kollenberg, Growthpoint Properties Head of Asset Management: Offices.
Being part of the e-CO2 green energy benefit scheme makes it easier for businesses consuming clean, wheeled power to achieve their ESG targets because at least 70% of their electricity will be from renewable sources such as wind, hydro and solar. Depending on availability, a select few businesses will also be able to elect to receive 100% renewable energy. Growthpoint has already started registering businesses eager to receive clean, green energy to meet their environmental goals.
“Opting into e-CO2 gives users access to certified RECs that can be used for annual emission reduction in ESG reporting to contribute towards tenants’ environmental goals or can be traded in the open market,” notes Werner van Antwerpen, Head Corporate Advisory at Growthpoint.
Consuming electricity in this way can significantly reduce a company’s Scope 2 emissions (as outlined in the Greenhouse Gas Protocol), which include indirect carbon emissions from electricity used by a company. Scope 1 involves direct emissions, while Scope 3 covers associated and indirect emissions in the supply chain. All three are essential to address in the journey to net zero carbon emissions.
Building occupants also benefit directly from e-CO2 in terms of a reduction in the cost of occupation. The tenants’ monthly renewable electricity allocation is used to calculate the benefit, and the longer a tenant stays in a building, the greater the savings.
“Growthpoint is also passing on cost benefits it receives from signing the PPA to the tenant. The cost benefit for a tenant opting for e-CO2 is the difference between the full increase in the electricity price applied by the local municipal authority or Eskom approved by NERSA annually and a fixed escalation rate for the renewable energy part of their electricity cost over the duration of the lease. This guarantees long-term savings. The longer your lease, the more the cost benefit saving becomes each year,” adds Kollenberg.
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
e-CO2 is initially available for new leases or renewals only in specific jurisdictions and to select buildings within the Growthpoint portfolio, but this will be expanded over time. The first buildings part of e-CO2 – all located in Sandton – are 138 West Street, The Annex, The Place, Fredman Towers, The Towers, Grayston Office Park, Sandown Mews, 12 Alice Lane, Advocates Chambers and Pinmill Farm.
