JSE-listed real estate investment trust Growthpoint Properties has announced a new energy benefit scheme called e-CO₂, which it will roll out at ten of its properties in Sandton.

This marks a next step in the company’s rollout of its renewable-energy transition and will involve providing green energy at its office buildings through wheeling, reducing carbon footprints and generating renewable-energy certificates (RECs) for tenants using the latest blockchain technology.

The scheme will debut in July 2025, delivering green energy to commercial properties through wheeling from multiple renewable-energy sources, including wind, water and solar power, which will be sourced through Etana Energy.

e-CO₂, pronounced “eco-two”,  is short for electricity minus carbon dioxide.

Growthpoint signed a landmark power purchase agreement with electricity trader Etana at the end of last year to wheel electricity from independent power producers across the country.

Through the agreement, Growthpoint has secured exclusive rights to buy 195 GWh/y of clean electricity, including 30 GWh/y generated by a hydroelectric power plant developed and operated by Serengeti Energy.

The hydroelectric project will generate constant baseload power from its site on the Ash river, which is within the Lesotho Highlands Water Scheme near Clarens, in the Free State.

Growthpoint advises that construction at the project is underway and will start operating on July 1 next year.

Following this, the majority of wind and some solar production from Etana’s signed generating portfolio will be added to the grid from 2026. Further sources could be added in future.

In its aim to be carbon neutral by 2050, Growthpoint has been focused on creating sustained value by integrating environmental, social and governance (ESG) into its corporate strategy.

Being part of the e-CO₂ green energy benefit scheme will allow businesses to achieve their own ESG targets as the majority of their electricity use will be from renewable-energy sources.

“Opting into e-CO₂ gives users access to certified RECs that can be used for annual emission reduction in ESG reporting to contribute towards tenants’ environmental goals or can be traded in the open market,” explains Growthpoint corporate advisory head Werner van Antwerpen.

Consuming electricity in this way can greatly reduce a company’s Scope 2 emissions, while benefitting occupants in the form of cost savings.

“The cost benefit for a tenant opting for e-CO₂ is the difference between the full increase in the electricity price applied by the local municipal authority or Eskom, approved by the National Energy Regulator of South Africa every year, and a fixed escalation rate for the renewable-energy part of their electricity cost over the duration of the lease,” Van Antwerpen says.

He adds that this guarantees long-term savings, particularly for longer lease customers.

The scheme is initially available for new leases or renewables only in specific jurisdictions and to select buildings within the Growthpoint portfolio, but this will be expanded over time.

The first buildings to have the scheme introduced include 138 West street, The Annex, The Place, Fredman Towers, The Towers, Grayston Office Park, Sandown Mews, 12 Alice lane, Advocates Chambers and Pinmill Farm.