South African real estate company signs offtake agreements for wind, solar and hydroelectric power generation
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South African real estate investment trust Growthpoint Properties has signed an offtake agreement for 195 GWh of renewable power with local power trader Etana Energy.
The contracted power will come from wind, with smaller portions of hydro and large-scale solar capacity.
Growthpoint Properties has signed a power purchase agreement (PPA) with South African green energy provider Etana Energy to provide 195 GWh of annual renewable energy capacity. This represents 32% of Growthpoint's current annual electricity consumption and will be used for its commercial property buildings in multiple jurisdictions across the country.
The agreement, described as South Africa's first multi-jurisdictional, multi-building, multi-source renewable energy power delivery agreement, will give Growthpoint's tenants access to green energy.The term and financial terms of the PPA were not disclosed.
Etana will cover 70 percent of the electricity consumption of Growthpoint's participating buildings and enable tenants in some of those buildings to purchase 100 percent of their electricity from renewable sources. The renewable energy delivered will be primarily wind, with smaller portions of hydro and large-scale solar.
Growthpoint will have the exclusive right to purchase all of the approximately 30 GWh of electricity generated annually from a 5 MW hydroelectric power plant developed, owned and operated by Serengeti Energy.
The plant is located on the Ash River in the Lesotho Highlands Water Project, near Clarence in the Free State Province of South Africa. The hydroelectric plant is currently under construction with financing completed. It is expected to be operational in July 2025, when it will supply its first power to Growthpoint.
Reyburn Hendricks, Director of Etana Energy, said, "This transaction plays a clear role in addressing the biggest challenges we face. It is a highly replicable and scalable example of how we can achieve our electricity targets while creating value for all parties involved." .
Progress continues to be made on South Africa's hybrid generation projects.2023 In August, the government announced that it had awarded project agreements to two wind, solar and storage hybrid generation facilities as part of South Africa's Risk Mitigation Independent Power Producer Procurement Program (RMIPPP). The facilities are expected to produce a total of 203 MW of energy.
Data from the International Renewable Energy Agency (IRENA) puts South Africa's installed solar capacity at 5.8 GW by the end of 2022.
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