Cape Town has for the first time wheeled renewable electricity to a portfolio of commercial properties in a single, pooled arrangement, a development hailed as a game‑changer for private power deals in South Africa. The breakthrough came after the 4.5 MW Boston Hydroelectric Plant in the Free State, co‑owned by Serengeti Energy and Growthpoint Properties, fed clean power through Eskom’s network to the city’s municipal grid, where it was allocated across five Growthpoint buildings – from the refurbished 36 Hans Strijdom office tower to the bustling Constantia Village Mall.
The model, championed by energy trader Etana Energy, sidesteps the cumbersome site‑by‑site negotiations that have long stalled corporate renewable procurement. By matching supply and demand across a portfolio, Etana acts as the sole licensed trader, settling variable charges and delivering a single, simplified bill to the municipality. This approach removes the supply‑demand matching risk that has made traditional power purchase agreements (PPAs) unattractive for businesses with multiple sites.
“Pooled wheeling doesn’t bypass any of the municipal use‑of‑system charges, therefore it’s cash‑flow neutral for the municipality,” explained Etana CEO Evan Rice. “The wheeling credit they receive from Eskom – their avoided cost – is simply passed on to the customer.” This cash‑flow neutrality is the key selling point for metros that fear losing revenue as large commercial users turn to independent power producers.
Pooled wheeling delivers scale and simplicity for the Cape Town market
South African municipalities have traditionally resisted private renewable deals, worried that direct procurement would erode electricity margins. The pooled model reframes the equation: municipalities retain their use‑of‑system income, while tenants enjoy lower, renewable‑sourced tariffs. Growthpoint’s Estienne de Klerk confirmed that the REIT has already invested more than R1 billion in solar and began receiving wheeled hydroelectricity in October 2025. He added that the Cape Town pool will soon serve over 30 of Growthpoint’s properties, spanning retail, logistics, office, healthcare and student accommodation.
The table below contrasts the traditional site‑by‑site wheeling approach with the new pooled model, highlighting the benefits that are driving rapid adoption.
| Aspect | Traditional Site‑by‑Site Wheeling | Pooled Wheeling (Cape Town) |
|---|---|---|
| Billing | Multiple invoices per property | Single consolidated invoice |
| Municipal Revenue | Potential loss of use‑of‑system fees | Fees retained, cash‑flow neutral |
| Risk Management | High matching risk for each site | Portfolio‑wide balancing reduces risk |
| Scalability | Limited by contract negotiations per site | Easy to add new buildings to the pool |
| Implementation Time | Months to years per site | Weeks to add additional properties |
| Customer Savings | Variable, often modest | Competitive, with confirmed post‑charge savings |
The comparison makes it clear that pooled wheeling offers a streamlined, financially neutral pathway for both municipalities and corporate tenants, paving the way for broader renewable uptake.
Etana is already wheeling renewable power in Nelson Mandela Bay, and other metros are drafting wheeling tariffs to mirror Cape Town’s framework. The remaining bottleneck, according to Rice, is municipal IT systems capable of reconciling and billing for wheeled volumes – a challenge the pooled model was designed to mitigate.
Growthpoint’s ambition extends beyond the initial five buildings. The V&A Waterfront is slated to join the pool, and the company plans to roll the model out to its logistics hubs in Durban and Johannesburg later this year. Such expansion could see the Cape Town pool delivering clean electricity to over 100 MW of commercial floor space within the next 18 months.
Mayor’s energy adviser Xanthea Limberg welcomed the initiative, describing it as “a decisive leap” that cements Cape Town’s position as South Africa’s leading metropolitan in the just energy transition. The city’s renewable‑energy roadmap now includes feeding additional generation assets into the pool, with Etana earmarking more than 500 MW of wind and solar projects currently under construction.
While South Africa still lacks an independent transmission system operator – a reform long advocated by industry bodies – Rice downplays its impact on wheeling growth. “There are already gigawatts of new capacity operating on wheeled energy. Enabling municipal customers to access it will support that trend,” he said.
The Boston hydro plant, the first of Etana’s generation facilities feeding the Cape Town pool, marks just the beginning. As more renewable assets come online and municipalities refine their billing systems, pooled wheeling could become the standard model for commercial renewable procurement across the country, delivering cost‑effective, clean power while safeguarding municipal revenue streams.