Sappi now sourcing large-scale renewable electricity through Enpower Trading
Three Eskom-connected Sappi sites now receiving up to 16 GWh of renewable electricity per month – equivalent to powering around 30,000 households at typical delivery levels – with a fourth site to follow
Cape Town, South Africa
A pioneering renewable energy partnership between Sappi and Enpower Trading has reached a significant milestone, with renewable electricity now being delivered to Sappi’s South African operations. The achievement marks an important step in a journey that began several years ago, built on a shared vision to advance corporate renewable energy procurement and support South Africa’s energy transition.
The partnership began with an ambitious objective: to develop a renewable energy solution that would diversify Sappi’s electricity supply, provide greater certainty over future energy costs and support the company’s decarbonisation ambitions.
At the time, the agreement represented the first and largest five-year corporate renewable power purchase agreement of its kind to reach financial close in South Africa. It was also a defining milestone for Enpower Trading, demonstrating the potential for innovative electricity trading structures to connect large industrial energy users with new renewable generation.
Sappi’s willingness to partner with and support Enpower Trading was instrumental in bringing this landmark agreement to life. As a leader in South African industry with a longstanding commitment to sustainability, Sappi brought more than demand for renewable electricity to the partnership. Its confidence in the model and commitment to working collaboratively helped establish a foundation on which both businesses could continue to build. Over the subsequent years, the two organisations have worked closely together to navigate a rapidly evolving electricity market, regulatory changes and the practical complexities of integrating renewable generation into South Africa’s electricity wheeling framework.
“This milestone reflects the power of strong partnerships and a shared commitment to finding practical solutions to complex challenges. Together with Enpower Trading, we have navigated an evolving energy landscape to bring renewable electricity into our operations at scale. It is a significant step forward for Sappi, supporting both our sustainability ambitions and our goal of building greater resilience into our energy supply,” said Graeme Wild, Sappi Southern Africa CEO. One of the key challenges along the journey was the evolution of Eskom’s Time-of-Use (TOU) tariff structure. Changes to the timing of the morning peak energy charge shifted a portion of the higher-priced electricity period away from the hours when solar generation is strongest. This introduced additional complexity into the original commercial structure, requiring both parties to work constructively through the implications and adapt to changing market conditions while maintaining the long-term objectives of the agreement.
That persistence has now translated into renewable electricity being delivered to Sappi’s operations.
“For Sappi, the significance of this milestone lies in the fact that 3rd Party options for renewable electricity is now becoming part of our day-to-day operations and ecosystem in addition to our own internal generation and wheeling. Over the past several years, we have worked closely with Enpower Trading to navigate the market and regulatory changes, always focused on the end goal of delivering value for all stakeholders ” said Lavendran Reddy, Regional Sourcing Manager for Sappi Southern Africa.
Enpower Trading is currently delivering between 8 and 16 gigawatt-hours (GWh) of renewable electricity each month to Sappi across three Eskom-connected sites, with a fourth, municipally connected site expected to come online as the programme expands.
For Enpower Trading, the partnership represents far more than a single power purchase agreement.
“Sappi backed Enpower Trading when we were a newly licensed trader and the model was still untested at this scale. That took conviction. What this milestone proves is that a licensed electricity trader can structure supply, navigate tariff and regulatory changes, manage the complexities of wheeling, and deliver renewable power to a large industrial user at scale,” said James Beatty, Co-Founder and Chief Executive Officer of Enpower Trading.
“We have built this partnership whilst navigating changes to Eskom’s Retail Tariff Plan, evolving regulations and a rapidly transforming electricity market. Seeing renewable power now being delivered to Sappi’s operations is a proud moment for both organisations, and a testament to what a committed, long-term partnership can achieve,” said Simon Le Roux, Enpower Trading’s Head of Commercial.
The renewable electricity is being supplied through Enpower Trading’s renewable energy portfolio, including generation from SolarAfrica Energy’s SunCentral solar project in the Northern Cape. The project is ultimately expected to reach 1 GW of generation capacity, contributing to the expansion of South Africa’s renewable energy supply.
For Sappi, the commencement of deliveries is an important milestone in its broader decarbonisation strategy. The company continues to pursue opportunities to increase its renewable electricity consumption and reduce its Scope 2 emissions as far as practically possible, reinforcing its commitment to sustainable industrial operations.
With the first 3rd Party renewable electricity now flowing, the partnership is entering an exciting new phase.
Sappi and Enpower Trading are looking to build on the progress achieved to date, with opportunities to expand renewable energy supply, incorporate additional generation sources and extend supply to further Sappi facilities. This next phase will build on the experience gained through the original agreement and the shared commitment that has sustained the partnership throughout its development.
“This is the start of an even more ambitious phase. Sappi has demonstrated a clear commitment to advancing its sustainability objectives, and we are proud to support that ambition. With the structure in place and power flowing, the next step is to bring additional generation into the mix, extend supply to more of Sappi’s sites and keep driving down its Scope 2 emissions,” added James Beatty.
The partnership demonstrates the value of bringing together a leading industrial business with ambitious decarbonisation goals and an electricity trading partner with the expertise to translate those ambitions into delivered renewable energy. By combining Sappi’s commitment to sustainable manufacturing with Enpower Trading’s ability to structure and manage complex electricity supply arrangements, the two organisations have helped advance a practical model for corporate renewable energy procurement in South Africa.
From a pioneering five-year PPA to renewable electricity now being delivered at scale, the partnership has converted a shared ambition into tangible progress. With further opportunities ahead to expand supply and introduce additional generation sources, Sappi and Enpower Trading are continuing to build on that foundation, supporting Sappi’s decarbonisation journey while contributing to the evolution of South Africa’s electricity market.
