Sub Heading Adrian Gore’s Game-Changing Platform to Unlock Billions in Investment and Emissions Reduction
Adrian Gore, the CEO of Discovery, has introduced a groundbreaking initiative called Discovery Green, which represents a transformative renewable energy platform. This innovative venture was officially launched this month and is set to facilitate a substantial investment of approximately R20 billion to R25 billion in South Africa’s energy infrastructure.
Collaborating closely with RMB, Discovery’s investment banking partner, this platform connects businesses throughout South Africa to affordable, renewable energy generated by large-scale renewable facilities. However, companies interested in joining Discovery Green should note that there is a two-year waiting period before they can be connected to renewable energy sources, with the anticipated activation date set for 2026.
Adrian Gore explained the inspiration behind this initiative, saying, “A number of years ago, we started to think about could we apply the Vitality science to how people think about climate? Could we change behaviour in the context of climate and it turns out is very similar at the individual level.” As they embarked on this journey, Discovery amassed a wealth of scientific and technological knowledge, highlighting electricity consumption as a pivotal factor in addressing climate concerns.
This led the team to focus on how corporations consume energy and explore ways to reduce their carbon footprint. “And that’s really the basis of Discovery Green, a platform in the middle of the market, creating a real market between buyers and sellers,” Gore remarked.
The platform operates through a system known as energy wheeling, where energy is generated at the most efficient locations in the country and then transported to businesses via the existing national grid. This allows businesses to operate on more affordable, renewable energy.
According to Discovery, the platform plans to secure between 400MW and 1GW of wind and solar energy from a carefully curated list of leading local and international Independent Power Producers (IPPs). This initiative is expected to catalyze an investment of around R20-R25 billion in the country’s energy infrastructure, which is equivalent to establishing 2700 rugby fields of solar farms or 200-250 wind turbines.
Andre Nepgen, the head of Discovery Green, noted that they have already initiated the tendering process, with the majority of bidders being local companies, although some international firms have also shown interest. At this point, the exact number of jobs that this investment will create remains uncertain.
The construction is on track to commence early next year, with solar construction expected to take approximately 18 to 22 months and wind construction around 24 months.
In its initial phase, Discovery Green will be accessible to medium to large businesses connected to Eskom distribution and will include a network of major corporate partners of Discovery. Over time, the platform intends to expand its services to other clients in South Africa, in conjunction with the introduction of Virtual Wheeling and new wheeling frameworks facilitated by municipalities.
Besides boosting the economy and providing cost-effective energy solutions, Discovery Green also offers an avenue for companies to significantly reduce their emissions, contributing to addressing the national electricity shortage.
“The impact of 1GW in renewable energy generation represents a saving of 2.75 million tons of CO2 per annum, equivalent to 100 times the emissions of a business the size of Discovery Limited,” the group stated.
Nepgen emphasized that Discovery Green aligns with the group’s goal of achieving carbon neutrality by 2025. He highlighted a fundamental challenge of renewable energy, which is that it is generated only when the sun shines or the wind blows, while businesses require a continuous power supply. Discovery Green addresses this by aggregating, modeling, and diversifying energy sources to offer innovative products that deviate from the conventional market’s share-of-plant approach.
For most non-industrial or mining businesses, electricity generation accounts for a significant portion of emissions, around 80% of Scope 1&2 emissions combined. While companies are increasingly setting emission reduction goals as part of their Environmental, Social, and Governance (ESG) strategies, achieving meaningful emissions reductions can be challenging with on-site generation methods such as rooftop solar.
Discovery has introduced two products to address various business needs:
- Green Saver: Designed for companies aiming to maximize both their renewable energy consumption and financial savings. Approximately 70% of energy consumption under this product will be renewable, with discounts of up to 20% compared to current generation costs. This offers substantial savings on electricity bills without any upfront costs or investments, providing price certainty with a CPI link.
- Green Guarantee: Geared towards companies committed to using 100% renewable energy each month. This product, which is available at little to no premium, aligns with companies’ environmental commitments and offers long-term savings linked to CPI.
Nepgen noted that Discovery Green has already garnered significant interest, with a one-third uptake during the initial 400MW phase. Additionally, Discovery has partnered with Rubicon, specialists in energy analysis, to offer short-term solutions that reduce electricity costs during the two-year waiting period, providing interim relief to clients.
Addressing questions about the future of Discovery Green in the event that Eskom resolves its power shortages, Nepgen clarified that Discovery Green operates as a distinct generation company and would seamlessly integrate into the supply chain once Eskom undergoes the planned transformation into Transmission and Generation firms.
