From Creamer Media in Johannesburg, this is the Real Economy Report.

Sashnee Moodley:

JSE-listed real estate investment trust (Reit) Growthpoint Properties has acquired a 30% stake in independent power producer Serengeti Energy’s operational Boston Hydroelectric plant, in the Lesotho Highlands Water Scheme near Clarens, in the Free State. Sabrina Jardim tells us more.

Sabrina Jardim:

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

As early as 2023, Growthpoint secured exclusive access to the about 30 GWh/y of renewable 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.

Growthpoint South Africa CEO Estienne de Klerk…

Sabrina Jardim:

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, which is the major water transfer scheme linking Lesotho and Gauteng.

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-co2 network through Etana Energy’s wheeling framework. This makes Boston Hydro a cornerstone of Growthpoint’s renewable supply mix.

Serengeti CEO Anton-Louis Olivier…

Etana Energy CEO Evan Rice…

Sabrina Jardim:

The e-co2 initiative is Growthpoint’s wheeled renewable 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.

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

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

De Klerk said this project set Growthpoint apart by providing a baseload and long-term energy solution that could guarantee its clients supply of green power, as well as greater energy security.

De Klerk explained that the PPA with Etana would pave the way for the development of several other generating plants, including a wind energy plant and another solar energy plant.

Growthpoint South Africa CEO Estienne de Klerk…

Sashnee Moodley:

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy. Don’t forget to listen to the audio version of our Engineering News daily email newsletter.