LEADING Independent Power Producer (IPP) SolarAfrica and POWERX, South Africa’s first NERSA-licensed energy trader, have signed a 60 MW Power Purchase Agreement (PPA) – a milestone that will ensure access to large-scale renewable energy for corporate and industrial businesses.
The agreement reinforces SolarAfrica’s leadership in energy innovation underpinned by its progressive partnerships with industry leaders, and SolarAfrica CEO David McDonald emphasises the importance of collaboration in driving South Africa’s energy transition.
“Finalising this agreement with POWERX is a prime example of how the renewable energy sector is working together to support businesses. IPPs and energy traders play a vital role in advancing wheeling adoption, making it easier for organisations to access cleaner and more affordable electricity.”
Energy trading – where licensed traders purchase renewable energy from multiple IPPs and on sell it to multiple businesses – has been widely successful in Europe and has gained momentum in South Africa. As a trader, POWERX takes the clean power generated at scale by IPPs like SolarAfrica and sells it to its contracted off-takers. These businesses benefit from greater choice and more flexibility in their energy procurement, contributing to a more dynamic and agile power trading environment while moving closer to their ESG targets.
Recognising SolarAfrica’s progress on its flagship 1 GW utility-scale solar farm, SunCentral, Thembani Bukula, CEO at POWERX notes the trader’s eagerness to secure the agreement: “With a shared vision for expanding clean energy access, we finalised this agreement within a few months, demonstrating the growing appetite for wheeled energy solutions in South Africa.”
With the first phase already underway on SunCentral, the company looks forward to bringing the project online for POWERX to wheel to its customers.
Founded in 2011, SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. The holistic suite includes on-site solutions such as solar energy and battery storage together with virtual solutions like wheeling, trading and aggregation.
SolarAfrica partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction – building towards long-term sustainability.
The company has evolved into an ambitious team who are passionate about what they do and the core values they uphold. SolarAfrica has been named the continent’s leading solar energy firm twice, scooping the Africa Solar Industry Association’s African Solar Company of the Year award in 2021 and 2023.
