JSE-listed real estate investment trust (Reit) Redefine Property has revealed that its total renewable-energy component, which includes wheeling and further expansion of its rooftop solar PV portfolio, is expected to reach 25.14% by the end of next year.

Speaking at the Redefine Property capital markets day in Sandton, on August 27, Redefine developments and industrial asset management head Johann Nell provided updates on the company’s progress.

He revealed that the Reit currently had 3.6 MW of embedded solar PV generation systems installed, at a capital expenditure (capex) of R39-million, achieving a return on investment (ROI) of 20%.

A further 5.6 MW is under construction, at an R81-million capex and an expected ROI of 18% and Redefine has budgeted a further R136-million in capex for the construction of another 7.5 MW, which is currently in the feasibility stage, with an anticipated ROI of 12%.

Wheeling opportunities were also being explored for Redefine’s sites that were directly supplied by State-owned utility Eskom. These sites, situated primarily in Gauteng, would receive 39 MWh/y for a 20-year period starting at the end of 2025. This supply represented 7.9% of the portfolio's current yearly energy requirement. Redefine Property would buy this renewable energy at a rate 44% lower than the Eskom tariff, Nell explained.

A significant portion of the Reit’s energy supply was currently sourced from local municipalities, which restricted its ability to expand renewable-energy generation for wheeling purposes, he noted.

However, once local municipalities establish wheeling frameworks, he said, Redefine would be able to use rooftops where embedded generation was not currently feasible owing to low load requirements. These sites, typically featuring large roofs with minimal electrical load demands, are well-suited for exporting energy as generator sites, Nell said.

Redefine is also considering expanding its renewable energy generation capacity by developing solar farms on undevelopable land for wheeling purposes exclusively. The wheeled energy initiative is expected to result in a reduction of 41 694 t/y of CO₂-equivalent (CO₂e).

In addition to the Eskom-supplied sites, Redefine is participating in the City of Cape Town’s wheeling pilot project. The company is constructing a 6.2 MW rooftop solar plant on one of its large distribution centres in Brackengate, Cape Town.

The energy generated would supply two of Redefine’s retail centres, the Kenilworth Centre and Blue Route Mall. The system would produce more than 9 900 MWh/y, offsetting more than 25% of the combined energy requirements of these shopping centres and reducing CO₂e emissions by 10 200 t/y. The Brackengate rooftop plant is expected to be operational in the second half of next year, Nell said.

The City of Cape Town pilot, however, requires the relocation of the system connection to another council substation owing to misaligned design principles between the City of Cape Town’s requirements and those of the National Energy Regulator of South Africa and the Renewable Energy Technology Centre for plants exceeding 5 MW.

Nell said that, as such, the revised commissioning date for the project was set for the fourth quarter of 2025.

He noted that Redefine remained in regular contact with city officials to ensure the process progressed towards completion.