Old Mutual Real Estate Holding Company (OMREHC) has entered into an energy supplyagreement with NOA Group Trading to power the Eskom connected portion of its diversifiedproperty 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.
OMREHC CEO, Sakina Nosarka, said that sustainability and securing alternative energy sources were central to their 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,” Nosarka said.
“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.”
The 10-year contract is 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.
OMREHC is a stand-alone, unlisted boutique property fund managing a diversified portfolio valued at R27 billion. It specialises in investing in, developing, and managing high-quality property assets in the retail, industrial, and commercial sectors, both locally and internationally.
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, said this agreement showcased 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.
NOA is an aggregator, actively buying electrons from Independent Power Producers across South Africa, enabling faster and more efficient delivery of renewable energy to customers.
BUSINESS REPORT