Growthpoint Pioneers Commercial Green Energy with Strategic Hydro Stake and Innovative Wheeling Platform

Strategic Investment in Renewable Infrastructure

JSE-listed property giant Growthpoint Properties has made a strategic move into renewable energy infrastructure by acquiring a 30% stake in Serengeti Energy’s Boston Hydro plant. This 5 MW run-of-river facility represents a significant step in the real estate investment trust’s broader sustainability strategy and positions the company at the forefront of South Africa’s commercial renewable energy transition.

The R390-million hydroelectric plant, located on the Ash River within the Lesotho Highlands Water Project, boasts an operational lifespan exceeding 40 years. What makes this investment particularly noteworthy is Growthpoint’s foresight in securing exclusive access to approximately 30 GWh of annual renewable electricity through its pioneering power purchase agreement with licensed energy trader Etana Energy, finalized as early as 2023., according to recent research

The e-co Initiative: Revolutionizing Commercial Renewable Energy

Growthpoint’s e-co initiative (electricity minus carbon dioxide) represents a groundbreaking approach to renewable energy distribution for multi-tenanted commercial properties. This wheeled renewable energy platform directly connects tenants with clean power sources through the national grid, creating what the company describes as a “connected ecosystem” of environmental stewardship.

“The launch of e-co positions Growthpoint as South Africa’s first provider of a commercial-scale wheeled renewable energy solution for multi-tenanted commercial properties,” the company stated, emphasizing the program’s building-level certification and auditable benefits for tenants.

Beginning this month, the initiative will deliver renewable electricity directly to ten flagship office buildings in Sandton, Gauteng, with the Boston Hydro plant serving as the foundational power source. This marks the first time in South Africa that businesses can systematically reduce their Scope 2 emissions from purchased electricity in commercial properties while receiving certified documentation of their environmental progress., as covered previously, according to recent research

Technical Specifications and Operational Advantages

The Boston Hydro facility stands as the largest of six hydropower plants along the Ash River and represents Serengeti Energy’s fourth operational hydro plant in South Africa. As a run-of-river hydropower plant, it generates electricity using the natural flow and elevation drop of the river without requiring large-scale water storage, minimizing environmental impact while providing reliable baseload power., according to market developments

Growthpoint South Africa CEO Estienne de Klerk highlighted the strategic importance of this investment: “This project sets Growthpoint apart by providing a baseload and long-term energy solution that can guarantee our clients supply of green power, as well as greater energy security.”, according to technological advances

The plant’s 24/7 power generation capability addresses one of the critical challenges in renewable energy adoption – intermittency – making it a cornerstone of Growthpoint’s renewable supply mix. When combined with the company‘s existing rooftop solar installations and the full implementation of its PPA with Etana Energy, approximately 40% of Growthpoint’s total electricity demand will be supplied from renewable sources.

Certification and Transparency Framework

A crucial component of Growthpoint’s renewable energy strategy involves the verification and certification of its green power supply. The company registers electricity generated through the Boston Hydro plant on the International Renewable Energy Certificate (I-REC) registry via Fuel Switch, Africa’s first blockchain-enabled REC exchange.

This certification process ensures:

• Global transparency in renewable energy attribution
• Traceability of clean energy from generation to consumption
• Accountability across Growthpoint’s clean-energy portfolio
• Tradable digital certificates that businesses can use for sustainability reporting

The digital RECs enable tenants to report certified emissions reductions aligned with evolving International Financial Reporting Standard sustainability requirements, providing tangible evidence of environmental progress to stakeholders.

Broader Implications for South Africa’s Energy Landscape

Growthpoint’s investment and the subsequent e-co initiative demonstrate how the property sector can lead South Africa’s transition toward energy security and sustainability. De Klerk emphasized the broader national benefits: “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.”

The collaboration between Serengeti Energy as developer and operator, Etana Energy as energy trader and wheeling provider, and Growthpoint as offtaker represents a model for future renewable energy projects. This partnership approach combines specialized expertise across the renewable energy value chain, creating a blueprint that other commercial property owners might emulate.

De Klerk confirmed that the PPA with Etana would enable development of additional generating plants, including wind and solar facilities, further diversifying Growthpoint’s renewable portfolio. While the company remains focused on its core real estate business, it will continue exploring energy projects that align with its mission to “provide a space to thrive” for tenants.

As South Africa continues grappling with energy challenges, Growthpoint’s comprehensive approach – combining strategic infrastructure investment with innovative energy distribution and certification – offers a replicable model for commercial sustainability that balances environmental responsibility with business practicality.

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