Initiative boosts renewable energy, efficiency

The electricity minus carbon dioxide, or e-co2 (pronounced eco-two), green energy benefit scheme, introduced by real estate investment trust Growthpoint Properties, is driving a shift towards renewable energy and improved energy efficiency in South Africa’s real estate sector, says Growthpoint corporate advisory head Werner van Antwerpen.

The e-co2 initiative provides tenants with direct access to green energy, helping them achieve sustainability goals while enjoying cost savings.

A key component of this effort is a power purchase agreement (PPA) with renewable-energy trader Etana Energy, which facilitates the wheeling of renewable energy across Growthpoint’s buildings and paves the way for broader energy management innovations.

With e-co2 initially launched for ten buildings in Sandton, Van Antwerpen explains that the initiative is designed as a reward programme that increases cost savings the longer tenants stay in the building.

“This structure not only supports tenants in meeting their environmental, social and governance (ESG) goals but also encourages long-term occupancy, benefiting both Growthpoint and its clients,” he tells Engineering News.

Specifically, he highlights that the PPA, signed in November 2023, plays a critical role in scaling the initiative, enabling Growthpoint to wheel 195 GWh/y of renewable energy to more than 85 buildings starting in July 2025, while also providing tenants with renewable-energy certificates, or RECs.

The PPA signed with Etana Energy marks a milestone for Growthpoint, being the first of its kind in South Africa to involve multiple jurisdictions, buildings and sources.

Van Antwerpen highlights that this agreement secures Growthpoint exclusive rights to purchase electricity from a 5 MW hydroelectric power plant developed by independent power producer Serengeti Energy.

This plant, located within the Lesotho Highlands Water Scheme, will generate 30 GWh/y of renewable energy, providing a steady 24/7 supply, which is essential for Growthpoint’s operations.

The hydroelectric power will be complemented by wind and solar energy from Etana’s portfolio, covering 70% of the energy needs of Growthpoint’s participating buildings. This reliable mix of renewable-energy sources is expected to significantly advance Growthpoint’s progress towards achieving carbon neutrality by 2050.

However, implementation was not without its challenges, says Van Antwerpen, who notes that primary hurdles were the legal and logistical complexities involved in structuring contracts across multiple jurisdictions.

This process took over a year of negotiations and required extensive input from legal experts to create a framework that could accommodate the complexities of renewable-energy transactions in South Africa’s real estate sector.

This pioneering contract structure has set a new benchmark for managing such transactions in the future, he tells Engineering News.

Another significant challenge was securing the renewable- energy supply from producers, which involved extensive coordination from Etana Energy. Additionally, Growthpoint must ensure that all identified buildings are on a time-of-use tariff and amend the electricity supply agreements to allow for electricity from different sources.

These steps were essential in laying the foundation for the e-co2 initiative and scaling it beyond the initial ten Sandton buildings, Van Antwerpen explains, adding that initial feedback from tenants has been positive, with many businesses eager to participate in the scheme to meet their environmental objectives.

Looking ahead, Growthpoint is focused on integrating additional renewable-energy sources, such as wind and solar, to further improve energy management.

Van Antwerpen emphasises the importance of differentiating between energy efficiency and energy management, as Growthpoint continues to monitor energy intensity in its buildings and benchmark performance across sectors such as office, industrial and retail.

New technologies are constantly being explored to enhance efficiency.

As renewable-energy regulations evolve, particularly concerning wheeling within municipalities, Growthpoint plans to increase its procurement of renewable energy, ensuring that an even greater proportion of its electricity consumption is derived from sustainable sources.