Enpower Trading has taken another significant step towards helping unlock more than 5 GW of renewable energy over the next five years, boosting generation capacity to help overcome the current energy crisis in South Africa. Enpower Trading and SolarAfrica Energy have signed an offtake agreement that will deliver up to 100 MW of renewable power supply – equivalent to the energy usage of about 60 000 households or 240 000 people.
Enpower Trading is the first energy trader to secure a licence from the National Energy Regulator (NERSA) in over a decade and aims to play a critical role in accelerating private investment in new generation capacity and extending energy availability – as illustrated through this offtake agreement with SolarAfrica. SolarAfrica is a market leader in state-of-the-art energy solutions. It has evolved from being a specialist provider of rooftop photovoltaic systems, to a full-service provider of Capex-free green energy solutions – ranging from solar and battery storage options to wheeling energy to the C&I (commercial and industrial) market.
The agreement supports SolarAfrica’s positioning as a competitive player in the newly enabled wheeling space – which facilitates the transport of power across the national and municipal grid networks to be used in another location. “Having signed similar deals with end consumers, we're excited about the dynamic that trading brings to our business and the market,” says SolarAfrica CEO, David McDonald. “Trading entities are a new market for us; the value of aggregation allows IPPs to benefit from economies of scale and essentially provides bankability for smaller consumers to gain access to renewable energy on a larger scale. We look forward to signing more agreements of this nature as the market expands.”
The 20-year power purchase agreement (PPA) is the first contract secured for Enpower Trading to provide access to cleaner, more affordable power for all. It will assist Enpower Trading to deliver a utility-scale green energy solution and will help alleviate the generation shortfall in South Africa, over time reducing the need for loadshedding. It also presents an example of the trading model which can be used to facilitate the transport of electricity on behalf of independent power producers (IPPs) to multiple off-takers – potentially including municipalities and enabling them to keep local distribution grids revenue-neutral while providing customers with reduced energy tariffs.
James Beatty, CEO of Enpower Trading says, “This is the first step towards unlocking the merchant market where demand is met through dynamic trade. We are excited to demonstrate the risk reduction that the trading model brings to SolarAfrica as an IPP, by providing a diversified customer pool, alongside energy contracts that are more flexible and affordable for the South African market.”
Enpower Trading is committed to creating long-term mutually beneficial partnerships that drive local economic development and improve the livelihood of South Africans. Enpower Trading and SolarAfrica in partnership aim to provide unique and innovative energy supply solutions for a more sustainable South Africa.
For more information visit: www.enpowertrading.co.za
