Old Mutual Real Estate Holding Company (OMREHC) has signed a 10-year energy supply agreement with NOA Group Trading to power the Eskom-connected portion of its diversified property portfolio.
NOA is an integrated utility that provides tailored renewable energy solutions to commercial and industrial customers.
Under this wheeling agreement, OMREHC properties will receive renewable energy supplied by NOA, which is expected to meet 90% of the energy demand for the Eskom-connected portion of OMREHC's portfolio.Wheeling, according to Eskom, is the delivery of energy from a generator to an end-user via existing distribution or transmission networks.
The 10-year contract is set to begin in 2026, when NOA’s fleet of generation facilities reaches commercial operation.
It marks OMREHC's first wheeling transaction and is part of a broader strategy to roll out renewable energy solutions across its commercial properties nationwide, aiming to reduce carbon emissions and energy costs through a combination of solar photovoltaic (PV) and wind energy.
Commenting on the transaction, OMREHC 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.”
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 that 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.”
Additionally, NOA is exploring virtual wheeling for municipal-connected customers, anticipated to launch in 2025. Virtual wheeling connects buyers that have multiple off-take sites (including those behind municipal boundaries) to generators, via the Eskom or municipal grids, according to Eskom.
This new wheeling framework will further enable renewable energy access to municipal-connected businesses, expanding the company’s reach within the commercial property sector.
Cornelissen added that NOA’s supply contracts are flexible, designed to enables clients to meet ambitious decarbonisation and cut costs. “We achieve this by reallocating any excess energy that a customer cannot use to other customers with demand. This approach minimises the risk of paying for unused energy, while also ensuring that customers benefit from a high level of renewable energy coverage. As NOA’s customer portfolio grows, we will be able to provide even greater volumes of renewable energy with minimal risk of deemed energy payments.”
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