Pioneering a greener future for South Africa, Growthpoint Properties (JSE: GRT), the country’s leading real estate investment trust (REIT), is set to transform the commercial real estate landscape with the introduction of a clean, green energy benefit scheme called e-CO2 at 10 of its properties in Sandton, Johannesburg. This significant milestone is part of its renewable energy transition—a first for South Africa.

With the major elements in place, the groundbreaking scheme will debut in July 2025, delivering the first green energy to office buildings through wheeling, reducing carbon footprints and generating Renewable Energy Certificates (RECs) for tenants using the latest blockchain technology. Growthpoint is leading the way in offering certified green energy solutions in South Africa’s commercial property sector.

The e-CO2 Green Energy Benefit Scheme

The e-CO2 green energy benefit scheme (short for "electricity minus carbon dioxide") is an innovative solution that will deliver green energy from multiple renewable sources—including water, wind, and solar—directly to commercial properties. This initiative is made possible through Growthpoint’s Power Purchase Agreement (PPA) with Etana Energy, signed at the end of 2023. The agreement enables Growthpoint to wheel electricity generated by independent power producers to its buildings across various locations.

The wheeling model allows the buying and selling of renewable energy using the existing distribution network, giving more users, especially in urban areas with limited on-site renewable energy production, greater access to clean energy.

Renewable Energy Through Etana Energy

Through its agreement with Etana Energy, Growthpoint has secured exclusive rights to 30GWh of clean energy generated annually by a hydroelectric power plant developed by Serengeti Energy. This plant, located on the Ash River within the Lesotho Highlands Water Scheme, will generate 24/7 baseload power and is set to commence operations on 1 July 2025. Additional renewable energy sources, including wind and solar, will be added from 2026.

A Major Step in Sustainability

Paul Kollenberg, Growthpoint Properties’ Head of Asset Management: Offices, explains:
"This agreement secures us a significant 195GWh of clean electricity annually for Growthpoint and our tenants. It represents an important step 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."

Delivering Savings and ESG Benefits to Users

The e-CO2 scheme will help businesses achieve their ESG targets, as at least 70% of their electricity will come from renewable sources. Depending on availability, some businesses can elect to receive 100% renewable energy. The programme will help reduce companies’ Scope 2 emissions, which cover indirect carbon emissions from electricity use, as outlined in the Greenhouse Gas Protocol.

Additionally, tenants can benefit from long-term cost savings. The fixed escalation rate for renewable energy will shield tenants from full municipal or Eskom electricity price increases. The longer a lease is in place, the greater the cost savings over time.

Growthpoint’s Sustainability Vision

Growthpoint’s goal is to achieve carbon neutrality by 2050, committing significant resources to drive sustainability within its operations and across its supply chain. The company’s leadership in green building practices and renewable energy projects is setting a precedent for sustainable business in South Africa.

Participating Properties and Expansion

The initial rollout of the e-CO2 green energy benefit scheme will cover 10 properties in Sandton:

• 138 West Street
• The Annex
• The Place
• Fredman Towers
• The Towers
• Grayston Office Park
• Sandown Mews
• 12 Alice Lane
• Advocates Chambers
• Pinmill Farm

This programme will initially be available for new leases or renewals in specific buildings, but Growthpoint plans to expand it further.

Kollenberg concludes:
"We are incredibly proud of this innovative initiative, made possible by a visionary team, dedicated partners, and many passionate people over a number of years. It not only benefits the immediate occupants of Growthpoint’s properties but helps to create a brighter and more sustainable future for South Africa."

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