Mediclinic to procure renewable energy in a $152 mln deal
03/09/2021 14:34
JOHANNESBURG, Sept 3 (Reuters) - Private healthcare group
Mediclinic International Plc MDCM.L said on Friday its
southern Africa division had agreed to procure renewable
electricity through Energy Exchange in a deal worth up to 110
million pounds ($152 million).
Procuring renewable energy, specifically electricity, forms
part of the group's strategy, which has set an ambitious target
to become carbon neutral by 2030, South Africa's biggest private
hospital group by market value said.
South Africa, the continent's worst polluter, emits millions
of tonnes of carbon dioxide into the atmosphere each year, much
of it from coal-fired power plants that still provide most of
its energy.
Climate considerations have become a greater concern for
investors, with some pulling out of local multibillion-dollar
coal-fired power plant projects and halting direct funding.
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Companies are also trying to curb their reliance on ailing
state utility Eskom, which regularly implements electricity
outages.
"While Mediclinic strongly believes that the use of
renewable energy is important in ensuring a healthy planet for
future generations, reducing consumption by investing in
energy-efficient equipment and renewable energy sources also
assists in mitigating rising electricity costs," Mediclinic
said.
In addition, the agreement with Energy Exchange of Southern
Africa will likely provide an economic benefit as the annual
tariff increases are expected to be inflation-linked, it added.
Energy Exchange is currently the only platform able to
connect businesses with electricity generated by independent
power producers (IPPs) in South Africa and which will have the
necessary agreements in place with the state utility provider
Eskom and local municipalities to make use of their networks,
Mediclinic said.
($1 = 0.7233 pounds)
(Reporting by Nqobile Dludla
Editing by Mark Potter)
((nqobile.dludla@thomsonreuters.com; +27103461066;))