In a significant leap towards clean energy utilization, the City of Cape Town’s energy grid has witnessed the infusion of green electricity, marking a pioneering achievement for the city. Growthpoint Properties, in collaboration with licensed electricity trader Etana Energy, became the first entity to engage in electricity “wheeling” within Cape Town.
Electricity wheeling is a process where electricity is bought and sold among private entities, using the existing grid to transport power from generation sites to distant end-users. This practice aims to enhance access to affordable renewable energy and plays a pivotal role in mitigating the nation’s energy crisis.
Under the aegis of Cape Town’s wheeling pilot project, which includes Etana as a participating trader, solar energy generated at Growthpoint’s The Constantia Village shopping center in Constantia is being channelled into Cape Town’s electricity grid for consumption at Growthpoint’s 36 Hans Strijdom office building in the Foreshore area, home to Investec and Ninety-One.
The signing of a wheeling agreement between the City and Growthpoint in late August marked a groundbreaking achievement for renewable energy in Cape Town. On September 10, 2023, solar power from The Constantia Village was successfully integrated into the City’s energy grid for the first time.
Cape Town’s six-month pilot initiative encompasses 15 wheeling participants representing 25 generators and 40 customers. This endeavor is poised to lay the foundation for future energy wheeling within the city, encouraging businesses to harness energy from rooftop solar panels spread across multiple locations, thus optimizing solar capacity on a broader scale.
Mayor Geordin Hill-Lewis conveyed the city’s plans to introduce up to one gigawatt of independent power to mitigate load shedding, with the expectation that wheeling could contribute up to 350MW to the grid over time. He commended private sector pioneers who facilitated the successful integration of clean energy and appreciated the city’s efforts to establish the necessary legislative framework and agreements.
Estienne de Klerk, SA CEO of Growthpoint Properties, expressed that this initiative aligns Growthpoint with its climate commitment to achieve carbon neutrality by 2050 and bolsters efforts to provide clean, green energy to tenants in Cape Town.
Reyburn Hendricks, Director of Etana Energy, emphasized the significance of this landmark initiative, stating that enabling electricity wheeling to municipal-connected customers will expedite the introduction of new renewable energy generation onto South Africa’s grid.
Cape Town’s strategy to combat load shedding includes a multifaceted approach encompassing electricity wheeling, collaboration with independent power producers, incentivizing households and businesses to generate solar PV power through the ‘Cash for Power’ scheme and ‘Power Heroes’ incentives, and optimizing the Steenbras Hydropower plant.
The City’s wheeling pilot program aims to validate the contracting framework and billing mechanism for large-scale implementation. This pioneering transaction sets the stage for Growthpoint to extend clean energy wheeling to all its buildings in Cape Town, including Ninety-One’s long-term office at 36 Hans Strijdom.
