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 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.

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.

The e-co₂ initiative – short for electricity minus carbon dioxide and pronounced “eco two” – 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.

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.

“The launch of e-co₂ positions Growthpoint as South Africa’s first provider of a commercial-scale wheeled renewable energy solution for multi-tenanted commercial properties, with building-level certification and benefits that are made available to tenants in a verified, auditable format,” the Reit noted in a media release.

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 toward 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.

This ensures global transparency, traceability and accountability across its clean-energy portfolio.

Speaking to Engineering News, 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,” he told the publication.

He 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.

“Our contribution really is to help facilitate the development of these plants which add, clearly, significant capacity to the grid and helps us as a country, alleviate the challenges we're having with consistent energy supply,” he said, emphasising that, while Growthpoint remained focussed on its real estate business, it would explore more energy projects.

“Growthpoint’s objective is to provide a space to thrive, and innovative projects like these really enhance those efforts."