Growthpoint Properties has acquired a 30% stake in the new US$21m Boston Hydroelectric Plant, developed by independent power producer Serengeti Energy within the Lesotho Highlands Water Scheme near Clarens.
The plant, certified for commercial operation by Eskom on 17 October, has already begun feeding renewable power into South Africa’s national grid. It is expected to operate for more than 40 years.
Growthpoint secured exclusive access in 2023 to all 30GWh of electricity produced annually by the plant through a 195GWh power purchase agreement with licensed energy trader Etana Energy. The hydroelectric power will supply 23 of Growthpoint’s properties, including 10 in Sandton and three in Cape Town. Boston Hydro is the first project to come online under that agreement, which also includes future wind and solar power projects.
The investment forms part of Growthpoint’s long-term renewable energy strategy, which began in 2011 with rooftop solar installations. The company has invested more than R1 billion (about $54m) in solar power, building one of South Africa’s largest embedded generation portfolios. Its 80 rooftop plants currently provide 61.2MWp of capacity, with another 7MWp scheduled for completion by mid-2026.
Once its power purchase agreement with Etana Energy is fully operational, around 40% of Growthpoint’s total electricity consumption will come from renewable sources. The company verifies its renewable electricity through the International Renewable Energy Certificate registry using Fuel Switch, Africa’s first blockchain-enabled renewable certificate exchange.
Growthpoint’s renewable power is delivered through its e-co₂ initiative which now supplies wheeled green energy to 10 of its flagship office buildings in Sandton. The electricity, sourced from Boston Hydro, is certified zero-carbon and allows tenants to cut both costs and Scope 2 emissions in line with new international sustainability reporting standards.
Estienne de Klerk, South African CEO of Growthpoint Properties, said: “We are incredibly proud of this innovative initiative, made possible by a visionary team, dedicated partners such as Etana Energy, Serengeti Energy, Fuel Switch and many passionate and talented people over a number of years. It not only benefits the immediate occupants of Growthpoint’s properties but helps to create a brighter and more sustainable future for South Africa.”
Etana Energy provides the trading platform that enables renewable electricity generated by independent producers to reach Growthpoint’s buildings via the national grid. Evan Rice, CEO of Etana Energy, said: “Growthpoint and Etana’s clean energy partnership is accelerating renewable energy in a way that works for business, the country and the planet. Together, we’re making clean electricity accessible through the grid, securing long-term take-off for IPPs and enabling businesses to cut costs and carbon without complexity. It’s a scalable, transparent model for South Africa’s energy future.”
Serengeti Energy developed, constructed and operates the Boston Hydro plant, a 5MW run-of-river facility on the Ash River that forms part of the Lesotho Highlands Water Project. It is the largest of six hydropower facilities along the river and Serengeti’s fourth operational hydro plant in South Africa.
Anton-Louis Olivier, CEO of Serengeti Energy, said: “Boston Hydro brings affordable, baseload renewable power to the grid reliably and around the clock. It’s the product of 15 years of operational experience across Africa. We’re proud to be the generation backbone of this ground-breaking clean energy partnership and powering a scalable solution for South African businesses through Growthpoint’s e-co₂.”
The plant is expected to produce about 30GWh of renewable power each year, providing consistent supply to Growthpoint’s renewable energy network.
