Diversified international private healthcare services group Mediclinic’s Southern Africa division has entered into an agreement, valued at up to £110-million, or about R2-billion, with Energy Exchange of Southern Africa to procure renewable electricity.

As part of the group's broad environmental, social and governance (ESG) strategy, Mediclinic has set an ambitious target to become carbon neutral by 2030.

Procuring renewable energy, specifically electricity, forms part of the group strategy to achieve its carbon neutral goal.

Mediclinic Southern Africa has agreed to acquire electricity through Energy Exchange, a platform where independent power producers (IPPs) in South Africa can sell renewable energy.

Energy Exchange is currently the only platform able to connect businesses with electricity generated by IPPs and which will have the necessary agreements in place with State utility Eskom and local municipalities to make use of their networks for the distribution of renewable electricity.

While Mediclinic strongly believes 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.

In addition, the agreement will likely provide an economic benefit as the yearly tariff increases are expected to be inflation-linked.

Mediclinic Group CEO Dr Ronnie van der Merwe says all of the group’s divisions are taking steps to reduce their electricity consumption intensity through the adoption of the ISO 14001:2015 environmental management system.

This is expected to lead to improved operational efficiency of technical installations; the introduction of various new energy-efficient and renewable technologies; and changes in employee behaviour regarding energy use.

"Mediclinic is proud to participate in this pioneering renewable electricity initiative with Energy Exchange, enabling us to, over time, add more of our facilities to their network as we strive towards achieving the group's target of being carbon neutral by 2030," he comments.