Cape Town has become the testing ground for a new phase in South Africa’s electricity transition, as the City of Cape Town, Growthpoint Properties and Etana Energy introduce what they describe as the country’s first pooled renewable electricity wheeling system.

The project expands on a renewable energy wheeling pilot introduced in 2023. Instead of allocating power to a single building, the new model allows electricity generated at one site to be shared across several properties within the same portfolio.

The first pooled allocation was completed in April 2026.

South Africa’s first pooled renewable electricity wheeling model launched by Growthpoint Properties

Hydropower from Free State feeds Cape Town grid

Under the arrangement, renewable electricity generated at the Boston Hydroelectric Plant near Clarens in the Free State is transmitted through Eskom’s network to Cape Town’s municipal grid. From there, the electricity is distributed across a group of Growthpoint properties in the city.

The hydro plant is jointly owned by independent power producer Serengeti Energy and Growthpoint. Etana Energy serves as the exclusive offtaker and licensed electricity trader.

The initial rollout supplies five Growthpoint properties in Cape Town, including the recently refurbished 36 Hans Strijdom building on the Foreshore, home to asset manager Ninety One.

Other participating sites include Constantia Village Mall, Montclare Place in Claremont, Newlands on Main and Centennial Place in Century City.

*Boston Hydroelectric Plant facility, showcasing Growthpoint’s e-CO₂ sustainability initiative.*

Growthpoint scales renewable energy

Growthpoint plans to extend the programme to more than 30 properties in Cape Town across its retail, logistics, industrial, office, healthcare and student accommodation portfolio.

The initiative follows more than 18 months of work involving the City of Cape Town, Growthpoint and Etana Energy, with support from Eskom Distribution Western Cape. Additional renewable generation facilities are expected to join Etana’s supply pool in the coming months. That would allow the programme to supply power to more than 25 additional Growthpoint-owned properties in Cape Town, including parts of the V&A Waterfront.

Estienne de Klerk, South Africa CEO of Growthpoint Properties, said the company had started delivering wheeled hydro-generated renewable electricity directly to several of its buildings and tenants.

“Pooled wheeling is the next logical step, and a significant one at that. What makes this different is scale and simplicity,” De Klerk said.

The model allows electricity generated at one or more facilities to be matched against the combined demand of several customers, rather than balancing supply and consumption building by building. According to De Klerk, that creates a more flexible system for allocating and settling electricity supply.

*Estienne de Klerk, South Africa CEO of Growthpoint Properties, alongside other executives at a wheeled renewable hydropower plant.*

Growthpoint’s leadership transition

Founded in 1987 and headquartered in Sandton, Growthpoint is South Africa’s largest listed real estate investment trust. The company owns 388 properties locally and also has investments in Australia, Romania and Poland. Growthpoint reported revenue of about $406 million in 2025, while its property assets approached $10 billion.

De Klerk, who has been part of Growthpoint’s leadership team for nearly two decades, is set to become group CEO on July 1, 2026, succeeding Norbert Sasse.

Why this matters for South Africa’s energy market

Etana Energy continues to scale its position as a licensed electricity trader supplying renewable energy across Johannesburg, Cape Town, and Nelson Mandela Bay.

The pooled wheeling model reflects a broader shift in South Africa’s commercial energy market, where private sector-led trading structures are increasingly being built on top of the national grid.

By enabling portfolio-level allocation of renewable electricity, the model could accelerate corporate decarbonisation, improve energy reliability for tenants, and increase investment in independent power generation projects.

Cape Town’s early adoption signals how municipalities may play a larger role in shaping energy flexibility frameworks in the years ahead.