Growthpoint Properties has finalised a significant Power Purchase Agreement (PPA) with Etana Energy, marking a significant step forward in sustainable energy procurement.
Under this agreement, Growthpoint will purchase 195GWh\ of renewable energy annually from Etana Energy, accounting for 32% of its total current annual electricity consumption (612GWhs in FY23).
195GWh: If generated by rooftop solar power, it would equate to approximately a 130MWp solar installation, assuming a generating yield of 1,500kWh/kWp annually.
However, the PPA generation profile would exhibit relative flatness over a 24-hour period due to the predominant wind generation and smaller hydro component.
In November 2023, Growthpoint signed a PPA with licensed electricity trader Etana Energy to facilitate the delivery of electricity to its commercial properties across various regions in the country.
This groundbreaking deal establishes the nation’s first multi-jurisdiction, multi-building, multi-source renewable energy wheeling arrangement. It will enable Growthpoint's tenants to access environmentally friendly energy sources and reduce their carbon footprint.
Through this partnership, Etana will supply 70% of the power consumed by Growthpoint's participating buildings. In certain buildings,
Growthpoint will offer tenants the opportunity to purchase 100% renewable energy, thereby actively contributing to carbon reduction efforts.
"The renewable energy supplied will predominantly come from wind sources, supplemented by hydro and large-scale solar electricity. This diverse generation mix ensures extensive coverage of Growthpoint's energy needs, as electricity is generated around the clock," explained Estienne de Klerk, SA CEO of Growthpoint Properties.
As part of the agreement with Etana Energy, Growthpoint has secured exclusive rights to purchase approximately 30GWh of electricity annually from a 5MW hydroelectric power plant developed, owned, and operated by Serengeti Energy.
This project, located on the Ash River within the Lesotho Highlands Water Scheme (LHWS) near Clarens in the Free State, is expected to generate baseload power effectively round the clock.
Growthpoint has also expressed interest in investing in the power plant, as evidenced by the signing of a Memorandum of Understanding with Serengeti Energy.
Serengeti Energy specialises in developing and managing renewable energy projects, primarily hydro, of up to 50MW in sub-Saharan Africa and currently operates nine plants across five countries.
Originally targeted for South Africa's Renewable Independent Power Producer Programme (REIPPPP), which supplies privately produced electricity to the national grid, Serengeti shifted its focus for this hydro plant towards commercial and industrial sectors.
The hydroelectric power plant, situated within the LHWS water transfer scheme between Lesotho and South Africa, is strategically positioned to provide reliable baseload power. It is also poised to benefit from future expansion plans of LHWS Phase 2.
The project has reached financial close and is currently under construction. Commercial operations are expected to commence on July 1, 2025, with the plant supplying its first electricity to Growthpoint, facilitated through the Eskom grid and traded via Etana.
Subsequently, the commissioning of wind and additional solar power from Etana's portfolio of renewable energy projects connected to the national electricity grid will begin.
Etana Energy specialises in delivering cost-effective clean energy from new large-scale renewable energy projects connected to the South African grid.
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