Growthpoint Properties Partners with Tenants to Advance Decarbonization Initiatives
Growthpoint Properties, listed on the JSE, has launched a groundbreaking green energy initiative that allows tenants to source up to 100% of their electricity from renewable resources. This marks a significant advancement in the way the commercial real estate industry tackles ESG (environmental, social, and governance) objectives.
This initiative, known as e-CO₂ (pronounced “eco-two”), stands for electricity minus carbon dioxide and utilizes a wheeling model powered by wind, solar, and hydroelectric sources. This allows tenants to greatly reduce the emissions associated with their electricity usage.
The wheeling process enables businesses to access renewable energy via the national grid without needing to invest in additional infrastructure.
With carbon reporting facing heightened scrutiny under ESG standards, e-CO₂ provides an edge for companies seeking sustainable and future-ready workspaces.
At the close of 2023, Growthpoint entered into a pioneering power purchase agreement (PPA) with electricity trader Etana to enable the wheeling of electricity from independent producers across the country.
Werner van Antwerpen, head of corporate advisory at Growthpoint Properties, highlights the distinctiveness of this PPA due to its varied energy supply composition. “We sought an energy mix capable of delivering power around the clock. We found an electricity trader aligned with our needs,” he states.
“Our mix consists of hydro generation at about 15%, wind energy at roughly 67%, and a minor share of 18% solar.”
Through this PPA, Growthpoint has secured exclusive rights to the full 30GWh of electricity generated each year by the Boston Hydro facility, which is developed and managed by Serengeti Energy.
Located on the Ash River as part of the Lesotho Highlands Water Scheme near Clarens in the Free State, this facility is set to provide consistent, 24/7 baseload renewable energy.
“After finalizing the PPA, we developed the e-CO₂ offering. Our goal is to pass some of the benefits obtained by Growthpoint directly to our tenants, particularly emphasizing financial advantages and green attributes,” Van Antwerpen adds.
‘Certified green energy’
Green attributes refer to the environmental benefits linked to renewable energy generation, often symbolized by renewable energy certificates.
To illustrate, when a solar panel generates electricity, it produces two outcomes – actual power and a certificate confirming that ‘This energy came from a clean, renewable source.’
“Together with our green attribute trading partner FuelSwitch, we have harnessed blockchain technology to devise a tenant allocation and trading platform specifically designed for the real estate industry. This technology functions similarly to that utilized in cryptocurrencies, enabling tenants to redeem renewable energy certificates to reduce their Scope 2 emissions or trade them for financial benefits.”
Carbon neutral by 2050
In line with the Paris Agreement, a 45% reduction in emissions is required by 2030, reaching net-zero by 2050.
Achieving carbon neutrality for organizations, nations, and cities requires a comprehensive strategy, which includes transitioning to renewable energy sources and enhancing energy efficiencies throughout operations.
“Our ultimate goal for 2050 is to achieve carbon neutrality, prompting us to rigorously explore strategies to meet that target,” asserts Van Antwerpen.
Originally scheduled for launch in July 2025, the first-generation capacity of the e-CO₂ product is now expected to be operational by September 2025, thanks to the Boston Hydro facility—a 5MW run-of-river hydropower system.
“The complete PPA is anticipated to come online in the next two to three years, covering around 32% of our total consumption at Growthpoint, excluding any contributions from rooftop solar installations. This will represent a significant leap towards attaining our 2050 objectives,” he notes.
Scalability
Van Antwerpen emphasizes the distinct nature of this PPA, as the electricity trader combines multiple generation facilities into the trading platform, designed to supply 89 buildings within the Growthpoint portfolio.
Initial recipients of this renewable energy will include properties in Sandton Central CBD, such as 138 West Street, The Annex, The Place (Growthpoint’s headquarters), Fredman Towers, The Towers, Grayston Office Park, Sandown Mews, 12 Alice Lane, Advocates Chambers, and Pinmill Farm.
“We established an extensive IT system to enable this, utilizing robotic process optimization to automatically download, read, and reconcile invoices with minimal human intervention,” Van Antwerpen mentions.
He adds that the technology needed for this product has been fully developed and is ready for implementation.
“We will soon witness the first electricity wheeled into South Africa or our portfolio. With the technology set up, it can be easily scaled throughout our operations in South Africa, taking into account other regulatory challenges.”
This content is provided by Growthpoint Properties.
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