Krugersdorp, 19 November 2024
Old Mutual Real Estate Holding Company (OMREHC) has entered into an energy supply agreement with NOA Group Trading to power the Eskom connected portion of its diversified property portfolio. This wheeling transaction between the aggregator and commercial property company will deliver over 90% renewable energy penetration, enhancing OMREHC’s renewable energy strategy, aimed at decarbonising and reducing energy costs through this bespoke offering of blended solar PV and wind energy.
The 10-year contract, expected to start delivering energy in 2026, when the fleet of generation facilities reaches commercial operations. This project marks OMREHC’s first wheeling transaction but forms part of a broader strategy which seeks to roll out wheeled renewable energy solutions throughout its portfolio of commercial properties across the country.
Commenting on the transaction, Old Mutual Real Estate Holding Company CEO Sakina Nosarka explained that sustainability and securing alternative energy sources are central to Old Mutual’s strategy.
“This wheeling agreement aligns perfectly with our commitment to climate-conscious practices that support a sustainable future, particularly given the energy challenges in our country. Through this initiative, we seek to ensure that our properties provide uninterrupted experiences for our stakeholders while contributing positively to broader energy security in South Africa,” Nosarka said.
Municipalities like the City of Cape Town, Ekurhuleni and several others are advancing efforts to enable wheeling to their customers giving NOA and OMREHC the opportunity to deepen their partnership through additional municipal premises in due course.
Karel Cornelissen, CEO of NOA commented, “This agreement showcases energy-intensive properties can reach close to 100% renewable energy penetration through an innovative renewable energy product offering that ensures both cost savings and substantial environmental benefits.”
NOA is also exploring virtual wheeling as a means to deliver energy to municipal connected customers. Virtual wheeling is anticipated to launch in 2025, following the conclusion of a pilot by Eskom and Vodacom. This new wheeling framework will further enable renewable energy access to municipal-connected businesses, expanding the company’s reach within the commercial property sector.
The property sector is a critical growth vector for energy traders and aggregators, which can offer renewable energy penetration of over 80%. Unique to the industry, NOA’s flexible contract structure also enable clients to meet ambitious decarbonisation goals while achieving meaningful cost savings.
BOILERPLATE:
NOA is an integrated energy utility that provides bespoke renewable energy solutions to customers in the commercial and industrial sectors, partnering with customers to meet their net zero ambitions, while saving on energy costs. NOA develops, constructs, and operates large scale wind, solar and battery energy storage facilities and has developed a comprehensive and innovative range of fully financed, grid wheeled solutions for its customers. The company is also an aggregator, actively buying electrons from Independent Power Producers across South Africa, enabling faster and more efficient delivery of renewable energy to customers.
Old Mutual Real Estate Holding Company is a stand-alone, unlisted boutique property fund managing a diversified portfolio valued at R27 billion. We specialise in investing in, developing, and managing high-quality property assets in the retail, industrial, and commercial sectors, both locally and internationally.
Our portfolio includes 1.1 million square meters of landmark shopping centres, industrial parks, and office blocks across key South African cities, with a growing presence in Romania, and Bulgaria. Among our South African assets are some of the country’s most iconic regional and super-regional shopping centres, including Gateway, Cavendish Square, and The Zone @ Rosebank.
Issued by: TM Communications
Tina Meier I 083 324 5553
Aisling Philips I 083 575 7215
Issued for: NOA Group
Date: 19 November 2024