NOA Group to supply Old Mutual Real Estate portfolio with wheeled renewable power

Property fund Old Mutual Real Estate Holding Company (OMREHC) has entered into an energy supply agreement with commercial and industrial renewable energy company NOA Group Trading to provide electricity for its property portfolio.

The wheeling transaction will deliver more than 90% renewable energy penetration, thereby enhancing OMREHC’s renewable-energy strategy, which is aimed at decarbonising and reducing energy costs through this bespoke offering of blended solar PV and wind energy.

The ten-year contract is expected to start delivering energy in 2026, when the fleet of generation facilities reaches commercial operations.

This project marks OMREHC’s first wheeling transaction, and forms part of a broader strategy that seeks to roll out wheeled renewable energy solutions throughout its portfolio of commercial properties across the country, it said.

Sustainability and securing alternative energy sources are central to Old Mutual's strategy, said OMREHC CEO Sakina Nosarka.

“This wheeling agreement aligns with our commitment to climate-conscious practices that support a sustainable future, particularly given the energy challenges in our country. Through this initiative, we seek to ensure that our properties provide uninterrupted experiences for our stakeholders while contributing positively to broader energy security in South Africa,” she said.

Further, municipalities such as the City of Cape Town, Ekurhuleni and several others are advancing efforts to enable wheeling to their customers, thereby giving NOA and OMREHC the opportunity to deepen their partnership through additional municipal premises in due course, she added.

“This agreement showcases energy-intensive properties can reach close to 100% renewable energy penetration through a renewable energy product offering that ensures cost savings and substantial environmental benefits,” said NOA CEO Karel Cornelissen.

NOA is also exploring virtual wheeling as a means to deliver energy to municipal-connected customers. Virtual wheeling is anticipated to launch in 2025, following the conclusion of a pilot by State-owned utility Eskom and mobile network operator Vodacom.

This new wheeling framework would further enable renewable-energy access to municipal-connected businesses, expanding the company’s reach within the commercial property sector, he said.

“The property sector is a critical growth vector for energy traders and aggregators, which can offer renewable-energy penetration of over 80%, and flexible contract structures also enable clients to meet ambitious decarbonisation goals while achieving meaningful cost savings,” he added.