Growthpoint Properties has signed a power purchase agreement (PPA) with South Africa green energy supplier Etana Energy for 195 GWh of annual renewables capacity.
The total represents 32% of Growthpoint’s total current annual electricity consumption and will be used across its commercial property buildings in several jurisdictions across the country.
The deal is billed as South Africa’s first multi-jurisdiction, multi-building, multi-source renewable energy wheeling arrangement, and will enable Growthpoint’s tenants to access green energy. The duration and financial terms of the PPA were not disclosed.
Etana will cover 70% of the power consumed by Growthpoint’s participating buildings, and in some buildings, provide tenants with the ability to purchase 100% renewable energy.
The wheeled renewable energy will mainly consist of wind, with a smaller component of hydro and large-scale solar capacities.
Growthpoint will have exclusive rights to purchase all of the roughly 30 GWh that will be generated annually by a 5 MW hydroelectric power plant developed, owned and operated by Serengeti Energy.
The plant is located on the Ash River within the Lesotho Highlands Water Scheme, close to Clarens in South Africa’s Free State. The hydroelectric power plant has reached financial close and is currently under construction.
It is expected to be operational by July 2025, when it will supply its first electricity to Growthpoint.
“Business has a clear role to play in solving our biggest challenges, and this is a highly replicable, scalable example of how to achieve this while creating value for all involved,” said Reyburn Hendricks, director of Etana Energy.
Hybrid projects in South Africa are gaining ground. In August 2023, the government announced it had awarded project agreements to two wind-and-solar-storage hybrid facilities as part of its Risk Mitigation Independent Power Producers Procurement Programme (RMIPPPP). The facilities are estimated to generate 203 MW of combined energy.
South Africa recorded 5.8 GW of installed solar capacity at the end of 2022, according to the International Renewable Energy Agency (IRENA).