Growthpoint Pioneers Green Energy Revolution with Strategic Hydro Investment and Tenant-Focused E-Co Platform

Strategic Stake Acquisition in Renewable Power

JSE-listed property giant Growthpoint Properties has made a significant move into renewable energy infrastructure by acquiring a 30% stake in Serengeti Energy’s Boston Hydro plant. This strategic investment represents a major commitment to sustainable energy solutions within South Africa’s commercial property sector. The newly developed R390-million hydroelectric facility near Clarens in the Free State boasts an impressive operational lifespan exceeding 40 years, positioning it as a long-term sustainable energy asset., according to industry developments

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Exclusive Renewable Energy Access Through Innovative PPA

What makes this transaction particularly noteworthy is Growthpoint’s foresight in securing exclusive access to approximately 30 GWh/year of renewable electricity through its groundbreaking power purchase agreement (PPA) with licensed energy trader Etana Energy. This arrangement, established as early as 2023, forms part of a larger 195 GWh PPA that represents one of the most substantial corporate renewable energy commitments in South Africa’s recent history., according to recent developments

The Boston Hydro facility stands out as the first operational project within a diversified portfolio of cost-saving, certified zero-carbon energy generation assets that include hydro, wind, and solar power installations. This diversified approach ensures consistent renewable energy supply regardless of weather conditions or seasonal variations., according to recent studies

Transforming Commercial Property Energy Landscape

When combined with Growthpoint’s existing rooftop solar installations and the full implementation of its Etana Energy PPA, approximately 40% of Growthpoint’s total electricity demand will be supplied from renewable sources. This achievement marks a watershed moment for South Africa’s commercial property sector, demonstrating that large-scale renewable energy integration is both feasible and commercially viable., according to recent innovations

The 5 MW run-of-river hydropower plant, developed and operated by Serengeti Energy, leverages the Ash river within the Lesotho Highlands Water Project infrastructure. As the largest of six hydropower facilities along the river, Boston Hydro represents Serengeti Energy’s fourth operational hydro plant in South Africa, showcasing the growing maturity of the country’s independent power producer ecosystem., according to market developments

E-Co Initiative: Revolutionizing Tenant Energy Solutions

At the heart of Growthpoint’s renewable energy strategy lies its innovative e-co initiative (electricity minus carbon dioxide), a wheeled renewable energy program specifically designed to benefit the company’s diverse tenant base. This groundbreaking approach delivers renewable electricity directly to ten flagship office buildings in Sandton, Gauteng, with Boston Hydro serving as the foundational power source.

The e-co platform offers multiple advantages for tenants:

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• Stable, cost-competitive green electricity through the national grid
• Zero-carbon footprint with certified Renewable Energy Certificates (RECs)
• Verified Scope 2 emissions reduction for sustainability reporting
• Auditable environmental benefits aligned with international standards

Pioneering Certification and Transparency Framework

Growthpoint has established a robust verification system for its renewable energy claims, registering electricity generation on the International Renewable Energy Certificate (I-REC) registry through Fuel Switch, Africa’s first blockchain-enabled REC exchange. This ensures complete transparency, traceability, and accountability across its clean energy portfolio, addressing growing investor and regulatory demands for verifiable environmental credentials., as detailed analysis

Growthpoint South Africa CEO Estienne de Klerk emphasized the broader significance of this initiative, stating that the company is “providing our little part in contributing to improving the energy situation in South Africa.” He highlighted how this project distinguishes Growthpoint by delivering baseload and long-term energy solutions that guarantee clients both green power supply and enhanced energy security.

Catalyzing South Africa’s Renewable Energy Transition

This collaborative model—combining Serengeti Energy’s power generation expertise, Etana Energy’s wheeling capabilities, Growthpoint’s commercial property platform, and Fuel Switch’s digital certification—represents a pioneering approach to advancing South Africa’s renewable energy transition. The partnership demonstrates how cross-sector collaboration can accelerate the adoption of clean energy solutions while creating shared value for multiple stakeholders.

De Klerk revealed that the PPA with Etana Energy will facilitate the development of additional generating plants, including wind and solar facilities, further diversifying Growthpoint’s renewable energy portfolio. “Our contribution really is to help facilitate the development of these plants which add, clearly, significant capacity to the grid and helps us as a country, alleviate the challenges we’re having with consistent energy supply,” he explained.

Setting New Standards for Commercial Property

Growthpoint’s e-co initiative establishes the company as South Africa’s first provider of commercial-scale wheeled renewable energy specifically designed for multi-tenanted commercial properties. The building-level certification and auditable benefits represent a significant advancement in how commercial property owners can support tenant sustainability goals while contributing to national energy security.

As de Klerk concluded, “Growthpoint’s objective is to provide a space to thrive, and innovative projects like these really enhance those efforts.” This comprehensive approach to renewable energy integration not only positions Growthpoint as an industry leader but also creates a replicable model for other commercial property owners seeking to navigate South Africa’s evolving energy landscape while meeting growing tenant demands for sustainable operations.

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