South African mall owner Resilient moves to cut reliance on power grid

Resilient Estate Investment Trust is increasing its use of solar power and battery storage as South Africa’s electricity costs remain a concern for shopping mall owners and their tenants. 

The Johannesburg-listed property group said it is working to reduce the amount of electricity it buys from the national grid while keeping power costs under control.

The move comes even as South Africa has gone more than a year without load shedding. 

For Resilient, the issue is no longer only whether the lights stay on. The cost of keeping malls running has become a bigger concern, with electricity tariffs putting pressure on businesses and consumers. 

The company expects renewable electricity to supply about 43.2% of its total power needs once its latest solar projects are completed.

That would take its installed solar capacity to 94.4 megawatts peak, up from 88 MWp.

Solar becomes a bigger part of the power mix 

Resilient said its strategy is aimed at reducing its reliance on grid electricity and containing the cost of consumption.

The company is also using battery storage to make better use of its solar power and manage demand at its shopping centers. 

During the six months to June, battery energy storage systems were installed at Mams Mall and Jubilee Mall, adding 10 megawatt-hours of storage capacity. Resilient’s total battery capacity now stands at 30.7 MWh. 

More projects are already under way. The company has started installing batteries at Brits Mall, Limpopo Mall and The Crossing Mokopane, while additional projects have been approved for Arbour Crossing and Kathu Village Mall.

South African businesses look beyond Eskom 

Resilient’s plans reflect a broader shift among South African businesses. The end of load shedding has reduced the immediate pressure on companies to secure backup power, but high electricity costs have kept solar and battery projects on the agenda. 

The company said changes to electricity tariffs could still affect its operating costs and the ability of tenants to absorb higher utility bills and municipal charges.

At the same time, the government is pushing ahead with plans to reshape Eskom and establish a more open electricity market.

Resilient’s retail property business 

Resilient REIT is a South African real estate investment trust focused on retail properties.

It owns 28 shopping centers with a combined lettable area of about 1.2 million square meters, including Galleria Mall in KwaZulu-Natal, Irene Village Mall and Grove Mall in Gauteng. 

For Resilient, cutting grid dependence is becoming as much a cost decision as an energy decision.

Solar and batteries offer the company another way to manage one of the biggest expenses involved in running large shopping centers.