- Growthpoint Properties in South Africa has introduces a green energy benefit scheme called e-CO2 at 10 of its properties in Sandton, Johannesburg.
With all major elements already in place for the groundbreaking scheme to debut in July 2025, Growthpoint will deliver the first green energy to its office buildings through wheeling, reducing carbon footprints and generating Renewable Energy Certificates (RECs) for tenants using the latest blockchain technology.
The Growthpoint e-CO2 green energy benefit scheme (e-CO2 is short for electricity minus carbon dioxide and pronounced “eco two”) is an innovative solution that will deliver green energy through wheeling from multiple renewable sources — water, wind, sunshine — directly to commercial properties. It is made possible by Growthpoint’s Power Purchase Agreement (PPA) with Etana Energy.
At the end of 2023, Growthpoint signed the landmark PPA with licenced electricity trader Etana Energy to wheel electricity generated by independent power producers to its buildings in several locations across the country. Wheeling involves the buying and selling of sustainably sourced electricity between private parties, using the existing transmission or distribution network.
Since this can be done over long distances, it gives more users greater access to renewable energy, which is an especially scarce commodity for offices in central business districts. Buildings in these areas, almost without exception, have insufficient roof space for meaningful on-site renewable energy production.
Through the agreement with Etana Energy, Growthpoint has secured exclusive rights to purchase all of the roughly 30GWh that will be generated annually by a hydroelectric power plant developed and operated by Serengeti Energy. The hydroelectric project, which will effectively generate 24/7 baseload power, is located on the Ash River within the Lesotho Highlands Water Scheme (LHWS) near Clarens in the Free State. Construction of the plant is well underway as it is readied to commence operation officially on 1 July 2025.
Following this, the majority of wind and some solar production from Etana’s signed generating portfolio will be added to the grid from 2026, and further sources could be added in future.
Consuming electricity in this way can significantly reduce a company’s Scope 2 emissions (as outlined in the Greenhouse Gas Protocol), which include indirect carbon emissions from electricity used by a company. Scope 1 involves direct emissions, while Scope 3 covers associated and indirect emissions in the supply chain. All three are essential to address in the journey to net zero carbon emissions.
Building occupants also benefit directly from e-CO2 in terms of a reduction in the cost of occupation. The tenants’ monthly renewable electricity allocation is used to calculate the benefit, and the longer a tenant stays in a building, the greater the savings.
Users at qualifying properties will receive their power as they always have, through the existing power grid. While this does not directly shield them from load shedding, Growthpoint is increasing generating capacity in the larger South African electricity network, reducing the likelihood of load shedding in the long term
e-CO2 is initially available for new leases or renewals only in specific jurisdictions and to select buildings within the Growthpoint portfolio, but this will be expanded over time. The first buildings part of e-CO2 – all located in Sandton – are 138 West Street, The Annex, The Place, Fredman Towers, The Towers, Grayston Office Park, Sandown Mews, 12 Alice Lane, Advocates Chambers and Pinmill Farm.
Author: Bryan Groenendaal
