JSE-listed real estate investment trust (Reit) Growthpoint Properties has acquired a 30% stake in independent power producer Serengeti Energy’s operational Boston Hydro plant near Clarens, in the Free State.

The plant is a new R390-million development with an operational lifespan of over 40 years.

As early as 2023, Growthpoint secured exclusive access to about 30 GWh/y of renew-able electricity generated by the plant, through its landmark 195 GWh power purchase agreement (PPA) with licensed energy trader Etana Energy.

In a joint media release, Serengeti, Growthpoint and Etana explained that Boston Hydro was the first project to come online in a mix of cost-saving, certified zero-carbon hydro, wind and solar electricity generation projects powering the PPA.

Together with its rooftop solar, when its PPA with Etana Energy is fully operational, about 40% of Growthpoint’s total electricity demand will be supplied from renewable energy.

Serengeti is the developer, builder and operator of the Boston Hydro project, a 5 MW run-of-river hydropower plant located on the Ash river within the Lesotho Highlands Water Project. 

Boston Hydro is the largest of six hydropower facilities along the Ash river and represents Serengeti Energy’s fourth operational hydro plant in South Africa.

The plant will generate about 30 GWh/y of renewable electricity, providing reliable 24/7 baseload power to Growthpoint’s e-co2network through Etana Energy’s wheeling framework. This makes Boston Hydro a cornerstone of Growthpoint’s renewable supply mix.

The e-co2 initiative – short for electricity minus carbon dioxide and pronounced “eco two” – is Growthpoint’s wheeled renew-able energy initiative -and is built around the company’s tenants, which include thousands of businesses, big and small, in all sectors of South Africa’s economy.

The companies explained that e-co2 will deliver wheeled renewable electricity directly to ten flagship office buildings in Sandton, Gauteng, and their tenants from this month, with the first electrons coming from the operational Boston Hydro over the national electricity grid.

Growthpoint noted that the e-co2 wheeled green electricity is stable and cost competitive for Growthpoint tenants. It also has a zero-carbon footprint and is certified with tradable digital Renewable Energy Certificates (RECS).

It noted that businesses can, for the first time in South Africa, cut their Scope 2 emissions from bought electricity in select Growthpoint buildings, thereby enabling them to save money, advance their sustainability goals and report certified emissions reductions aligned with evolving International Financial Reporting Standard sustainability reporting standards.

Additionally, the companies explained that e-co2 was built on collaboration and “leading-edge” skills, and was cemented by deep environmental stewardship that forme a connected ecosystem.

Together, Serengeti Energy’s independent power generation at Boston Hydro, Etana Energy’s wheeling offering and PPA, Growthpoint’s renewable energy offtake for its commercial properties and Fuel Switch’s digital REC registration had formed a pioneering collaboration advancing South Africa’s renewable energy transition, they added.

Growthpoint sits at the centre of this transparent ecosystem, demonstrating how the property sector can lead the shift towards energy security and sustainability, while unlocking shared value for stakeholders.

The Reit verifies its renewable energy by registering the electricity generated on the International Renewable Energy Certificate (I-REC) registry through Fuel Switch, Africa’s first blockchain-enabled REC exchange.

Growthpoint South Africa CEO Estienne de Klerk noted that clients using electricity generated from the e-co2 project could obtain renewable-energy certificates in return, thereby aiding their carbon neutrality objectives.

“We are providing our little part in contributing to improving the energy situation in South Africa.”