In a bid to contribute to SA’s net-zero carbon by 2030 target, Sandton City has launched several initiatives to improve energy efficiency. These include the installation of a 1MW solar photovoltaic roof structure and the implementation of smart-metering systems to monitor and optimise energy consumption patterns.
Earlier this month, Liberty Two Degrees (L2D) and Pareto, the owners of Sandton City, revealed their intention to source renewable energy through the Independent Energy Pool (IEP) platform. The platform is a cost-effective and efficient business-to-business energy marketplace that enables electricity consumers, generators, and traders to buy and sell power.
Business Day spoke to Liberty Two Degrees chief commercial officer José Snyders, who said that the group was purposeful in its endeavour to manage and reduce Sandton City’s carbon footprint.
How will the procurement process work on the IEP platform for renewable energy? How will Sandton City identify and select renewable energy suppliers?
We will be using the IEP platform and its services to perform the evaluation on our behalf. IEP will be making use of criteria specified by the Sandton City consortium. These include financial viability [and] stability of generators, broad-based BEE status, readiness to build, expected grid connection time frames, the degree to which the generators can match the required consumption profile, legislative compliance, possible decarbonisation and cost.
What is meant by wheeled renewable energy solutions in the context of this initiative?
As a landlord L2D aims to achieve net zero carbon through the energy management introduction of solar PV systems, energy efficiencies and other opportunities such as wheeling. L2D is actively exploring opportunities in renewable energy wheeling for Sandton City and Nelson Mandela Square in addition to the existing rooftop solar structure at the centres.
The limitation of available roof space at Sandton City implies that we are not able to install significant local solar resources. Wheeling is an alternative option. Wheeling offsets the cost of electricity of the customer through the provision of electricity to the grid at a different location generated by renewable energy sources.
In addition to the solar PV installation, are other specific energy-saving technologies or operational changes being implemented at Sandton City to reduce consumption and improve energy efficiency?
To reach net zero our strategy involves a focused approach to minimising both Scope 1 direct emissions and Scope 2 indirect emissions in our value chain. By setting and actively pursuing this target, we not only align with global sustainability initiatives, but also play a leadership role in driving positive environmental change in the property industry and the greater group.
L2D collaborates with tenants to enhance efficiencies. The establishment and execution of green leases for new deals with tenants underscores our commitment to integrating sustainability into our business practices. The component of green leases relating to specific targeted consumption reductions for individual tenants is still in the development stage. Investigations are also under way for backup battery supplies to try to optimise overall energy supply, efficiencies and cost.
How will the switch to renewable energy through the IEP platform affect Sandton City’s electricity costs? Will there be long-term savings, and if so, how will these be measured against the initial investment in renewable energy infrastructure?
Because of the wheeling mechanism used, we will procure power from independent power producers (IPPs). This implies zero capital cost for Sandton City’s account. We expect to purchase renewable energy at prices below our existing supply costs, which will result in operational savings. As long as this situation continues — where the cost from IPPs is below that of Eskom, we expect to realise net savings in addition to significant decarbonisation.
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