Paul Kollenberg
Growthpoint Properties
Head of Asset Management: Offices
Werner van Antwerpen Growthpoint
Head of Corporate Advisory
Growthpoint Properties is pioneering a clean and sustainable energy scheme called e-CO₂ in Sandton, Johannesburg, marking a significant milestone in South Africa’s renewable energy transition. Set to launch in July 2025, this groundbreaking initiative will bring green energy to Growthpoint’s office buildings through a process known as wheeling. This approach will significantly reduce the company’s carbon footprint and generate Renewable Energy Certificates (RECs) for tenants, leveraging advanced blockchain technology for tracking and validation.
The e-CO₂ scheme, short for “electricity minus carbon dioxide,” will directly supply renewable energy—sourced from water, wind, and solar—to Growthpoint’s commercial properties. This arrangement is facilitated by a Power Purchase Agreement (PPA) with Etana Energy, an electricity trader. Growthpoint finalized this agreement at the end of 2023, allowing it to transport electricity from independent power producers to its buildings nationwide. This innovative approach solves a common urban challenge: limited roof space for on-site renewable energy generation in central business districts.
Growthpoint has secured exclusive rights to purchase approximately 30GWh of electricity annually from a hydroelectric power plant operated by Serengeti Energy. Located on the Ash River within the Lesotho Highlands Water Scheme near Clarens, Free State, this plant will provide a steady 24/7 renewable energy baseload once operational on July 1, 2025. Following this milestone, Growthpoint plans to integrate wind and solar energy from Etana’s portfolio starting in 2026, with additional sources potentially added later.
Paul Kollenberg, Head of Asset Management: Offices at Growthpoint Properties, highlighted that securing 195GWh of clean electricity annually is crucial for their sustainability journey, benefiting Growthpoint and its tenants. This accomplishment aligns with the company’s decade-long focus on enhancing environmental, social, and governance (ESG) strategies.
The e-CO₂ scheme allows businesses to easily track and report reductions in Scope 2 emissions, including indirect carbon emissions from electricity usage, per the Greenhouse Gas Protocol. Under the scheme, at least 70% of tenants’ electricity needs will be met from renewable sources like wind, hydro, and solar. Select businesses may even opt for 100% renewable energy, facilitating their ESG targets.
Growthpoint is already registering companies interested in aligning with this clean energy initiative. Tenants opting into the e-CO₂ scheme gain access to certified RECs for annual emission reductions, which can contribute to ESG reporting or be traded in the open market, according to Werner van Antwerpen, Head of Corporate Advisory at Growthpoint.
Financially, e-CO₂ offers tenants savings by passing on cost benefits from the PPA. The tenants’ electricity cost savings will be calculated as the difference between municipal or Eskom price increases (approved by NERSA) and a fixed escalation rate for renewable energy. Over time, these savings grow, which is particularly beneficial for long-term leases.
While the initial phase of e-CO₂ is limited to specific jurisdictions and updated leases within Growthpoint’s portfolio, an expansion is planned. Initially, the Sandton buildings included 138 West Street, The Annex, The Place, Fredman Towers, The Towers, Grayston Office Park, Sandown Mews, 12 Alice Lane, Advocates Chambers, and Pinmill Farm. This scheme supports tenants in achieving their green goals and enhances the resilience of the broader South African energy network by fostering increased generating capacity, thereby reducing the risk of load shedding over time.