Old Mutual real estate holding company Accelerates Renewable Energy Strategy via Wheeling Partnership with NOA Group Trading
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.