/ 16 June 2008

Developers go green

Developers have come up with innovative solutions to the power crisis in the country that will allow some developments to continue despite a moratorium on new developments issued by Eskom in January this year.

Residential property developer CalgroM3 Developments faced a quandary earlier this year when Eskom told it that all new cluster developments would only receive 100kVA of power per development. The average cluster unit uses about 10kVA per month, which meant that CalgroM3 would only be able to build 10 units on a property designated for 43 units.

MD Deon Steyn came up with an ingenious solution: cut electricity usage of the units. Just by installing gas geysers and gas ovens and hobs, using energy-efficient light bulbs and insulating the ceiling and floors, CalgroM3 was able to reduce the electricity usage of each unit to less than 2kVA.

Steyn says he had to prove to Eskom that this was possible, but Eskom conceded and the 43-unit development got the go-ahead. As part of this agreement, homeowners have to sign the rules of the complex in which they agree not to change to electric geysers and ovens. They have the right, in a few years’ time, to apply to Eskom for a larger electrical connection if they decide to do so.

However, Steyn says that Eskom only allowed the developer to install cables and infrastructure for electricity capacity of up to 100kVA. Any upgrades would be at the cost of the homeowners, and consensus would have to be reached.

The development, Manyeleti complex in Craigavon, north of Johannesburg, has a central gas depot that pipes gas into homes, so owners are not responsible for filling up their own gas bottles.

The developer has installed a system that automatically notifies the gas company when gas levels are low, as well as a pre-paid meter system on a pay-as-you-use basis.

Steyn says homeowners do have the option to select solar geysers; however, these will be fitted with a gas back-up.

Commercial developer Growthpoint faced a similar problem with the redevelopment of a building in Sandhurst in Sandton. It has appointed a full-time energy consultant to review not only the proposed development, but also the retro-fitting of all buildings in its portfolio.

With the guidance of energy consultant Dean Goddard, the proposed new building will use 30% less electricity than other standard buildings. Growthpoint has taken this proposal to Eskom and is in the process of obtaining approval.

Goddard says the building will maximise electricity efficiency and use alternative power sources.

The building itself must face north to ensure maximum light, and use special materials for insulation. The design of the windows should optimise natural light without the heat of the sun in summer, and there must be natural ventilation.

The building will also use the latest technology to maximise efficiency — for example, by using new LED globes that only use three watts of power compared with a normal down-lighter that uses 57 watts. “If you consider that there must be over 10 000 down-lighters in the Sandton area alone, changing to three-watt bulbs would save 540 000 watts of power,” says Goddard.

Hot water will be solar generated and new age air-conditioning units will use 40% less electricity than conventional units. Motion sensors will be used so that lights go off when people go home.

Goddard is a member of the World Renewable Energy Council, and Growthpoint is a founder member of the Green Council in South Africa. The council is currently ratifying the green codes that will become standard requirements for all new developments in South Africa, based on the Australian Green Star initiative.

Goddard says the new development in Sandhurst is expected to receive a six-star rating when completed — the highest rating achievable. It is an expensive initiative, but it should pay big dividends.

With sustainable development a key priority for major global corporations, companies such as Microsoft, Google and Coca-Cola will be looking for green space, and the developer who can offer it to them.

Retro-fitting to cut usage by 10%
Estienne de Klerk, fund executive at Growthpoint, says that apart from the substantial saving on this specific building, as the biggest retail property owner in the country, Growthpoint has committed to Eskom to lower by 10% the entire energy usage by all 435 buildings in its portfolio.

Growthpoint, South Africa’s largest JSE-listed property company, was approached by Eskom, via the South African Property Owners’ Association, to commit to a 10% reduction in electricity consumption across its investment property portfolio. This will require the retro-fitting of all existing buildings with energy-saving units such as efficient lighting and solar power.

However, De Klerk says this will come at a substantial upfront cost to the company as it cannot build this cost into existing rental agreements.

Eskom has said that it will reimburse property owners for these upgrades, but De Klerk says the process is taking far too long. Eskom has argued that it requires going through three separate departments for approval, which is why it will take a year before companies receive a rebate — yet it gave industry one morning to reduce usage by 10%.

Growthpoint is hoping that by proving that it has reduced electricity consumption by 10%, this capacity will in turn be allocated to the building industry to allow for further developments.

The building industry employs a large number of people and has become the biggest driver of our economy. Finding green ways to continue to develop will be a boost for the entire economy and ensure a healthier and sustainable future.