OD11 digital HR - Flipbook - Page 43
The Old Boys Shaping
South Africa’s Energy
Future
In December 2024, Enpower Trading and Sappi Southern Africa reached
financial close on their pioneering 175GWh per annum, five-year
renewable energy Power Purchase Agreement (PPA). This milestone
advances Sappi’s sustainability goals while supporting South Africa’s
transition to renewable energy.
Wheeling energy from large-scale wind and solar farms is gaining traction
as an alternative to Eskom’s coal-fired power. Independent Power
Producers (IPPs) like SolarAfrica Energy are developing expansive solar
projects in high-yield regions such as the Northern Cape, where over
300 days of sunshine annually provide optimal conditions. These projects
allow companies to source green energy without investing in new
infrastructure, reducing costs while lowering carbon footprints.
Sappi’s renewable energy will be sourced from the SolarAfrica SunCentral
plant in De Aar, set to become a 1GW facility upon completion. Charl Alheit
(2001O), chief investment officer of SolarAfrica Energy, has been working
closely with Enpower Trading to bring this project to life. This partnership
reflects a shared commitment to advancing South Africa’s renewable
energy transition while delivering long-term value to customers like Sappi.
Despite the potential of wheeled energy, reaching financial close
remains a significant hurdle, accomplished by only a handful of
private power projects in South Africa. James Beatty (2001F), CEO
of Enpower Trading, explained, “Traders like Enpower Trading play
a crucial role in bridging tenure mismatches – purchasing energy
for 20 years and selling it in five-year tranches. This approach, while
introducing risk, enables more businesses to access affordable
renewable energy.” Enpower Trading has collaborated with key
financial institutions, including RMB, to structure these deals while
maintaining cost savings for customers.
Enpower Trading’s flexible contract structures have unlocked new
opportunities for businesses of all sizes. Beatty added, “We are now
exploring even shorter tenures to further expand market access.
The more companies we help transition to green energy, the closer
we are to achieving our mission.”
Sappi’s adoption of renewable energy is part of its broader
commitment to sustainability. Graeme Wild, CEO of Sappi Southern
Africa, emphasised, “Reaching financial close on this agreement
marks a significant milestone for our company and our nation.
This achievement underscores our commitment to sustainable
energy solutions and highlights the remarkable progress in
transforming South Africa’s energy landscape.”
This collaboration between Sappi and Enpower Trading serves as
a model for industrial players navigating the shift to clean energy,
demonstrating the potential of innovative power solutions to drive
economic and environmental progress.
