Mediclinic Inks Renewable Energy Deal With Energy Exchange

  • Mediclinic, the diversified international private healthcare services group has announced that its Southern Africa division has entered into an agreement with Energy Exchange to procure electricity from renewable sources.
  • Energy Exchange acts as a market place where independent generators can sell their surplus energy to the industrial and commercial entities who need it. 
  • The Agreement, worth £110m, will likely provide an economic benefit as the annual tariff increases are expected to be inflation-linked.

As part of the Group’s broad environmental, social and governance strategy, Mediclinic has set an ambitious target to become carbon neutral by 2030.

Procuring renewable energy, specifically electricity, forms part of this Group strategy. Mediclinic Southern Africa has agreed to acquire electricity through Energy Exchange, a platform where independent power producers (“IPPs”) in South Africa can sell renewable energy.

Energy Exchange is currently the only platform able to connect businesses with electricity generated by IPPs and which will have the necessary agreements in place with the state utility provider and local municipalities to make use of their networks for the distribution of renewable electricity.

Commenting today, Dr Ronnie van der Merwe, Group Chief Executive Officer, said: “Mediclinic is committed to ensuring that every day we improve sustainability by managing our resources responsibly and efficiently to the benefit of our stakeholders and the environment.

The Agreement’s total value is limited to £110m. Entering into the Agreement is a smaller- related party transaction under Listing Rule 11 of the Financial Conduct Authority’s (“FCA”) United Kingdom (“UK”) Listing Rules, as Remgro Ltd is both a substantial shareholder in Mediclinic, and one of the founding partners and 35% shareholder in Energy Exchange. The Agreement is therefore subject to the requirements of FCA Listing Rule 11.1.10R.

Author: Bryan Groenendaal

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