Retail group Woolworths will make a further R17.5-million worth of investments in renewable-energy projects, which are projected to have a payback period of four to five years.

The investment includes solar power installations of R10.5-million and a renewable-energy agreement of R7.3-million a year at key locations that include its head office and distribution centres in Cape Town, as well as its stores in Phalaborwa Mall, in Limpopo, and Greenacres Shopping Centre, in the Eastern Cape.

The expansion of the solar installations at Woolworths’ head office building triples the capacity of the initial pilot completed in 2013, adding an additional 357 kW, which will increase the solar-energy capacity at the Woolworths head office to 465 kW.

After this extension, about 11% of the energy requirements at its head office will be met through solar power, including its always-on power-intensive national data centre operating round-the-clock.

In its retail stores, transitioning to renewable energy requires substantial investment and collaboration with shopping centre owners. Retailers such as Woolworths often face challenges because they don’t own the roof and rely on progressive and flexible landlords, like Phalaborwa Mall with whom Woolworths partnered to install a 165 kW grid-tied system on the mall’s roof, thereby generating 30% of the store's energy needs.

Similarly, at its Greenacres store, in Gqeberha, Woolworths is investing in a 300 kW solar system, benefiting from partial roof ownership of the shopping centre.

“We have a goal to source all our energy from renewables by 2030. Working with the renewable-energy industry, energy traders, retail landlords, government and local municipalities has been crucial in making this shift,” said Woolworths Group Sustainability head Feroz Koor.

“Our 2030 goal encompasses not only switching to renewable energy but also maximising energy efficiency. Through numerous interventions, including the installation of fridge doors in 348 of our foodmarkets, smart technology and energy efficiency practices across all our stores, we have achieved a two-thirds reduction in our stores’ energy intensity over the last 15 years,” he highlights.

“Investing in renewable energy makes excellent business sense. By embracing renewable energy, we are not only enhancing our environmental sustainability, but also ensuring a future-fit retail operation that decouples energy usage from business growth,” he adds.