SOUTH AFRICA – Mediclinic, the Southern Africa division of private hospital group, Mediclinic, says it has entered into an agreement with Energy Exchange to procure renewable electricity, in a deal worth R2.1 billion (US$139 million).
Mediclinic CEO Ronnie van der Merwe said all divisions of the hospital group were taking steps to reduce their electricity consumption in what would lead to “improved operational efficiency of technical installations, the introduction of various new energy-efficient and renewable technologies, and changes in employee behavior regarding energy use”.
Since Remgro owns a 35% stake in the company, the agreement is subject to scrutiny by the Financial Conduct Authority.
Energy Exchange, whose board of directors is chaired by Phuthuma Nhleko, the former CEO and executive chair of the MTN Group, describes itself as a leading aggregator of electricity across a technology-diverse range of generators.
Companies across various sectors have taken to renewable energy as a means of overcoming the supply challenges faced by the state-owned power utility, Eskom, and several mining firms have moved to start generating their own solar power.
Self-generation by private entities received a boost early this year when the government lifted the threshold for companies to produce their own electricity without a license from 1 MW to 100 MW.
Mediclinic said the agreement with Energy Exchange is set to have economic benefits, given that annual tariff increases were expected to be inflation-linked.