POWERX and Yellow Door Energy Sign 24.5MWp Solar Power Purchase Agreement

POWERX, the first licensed private sector electricity trader in South Africa, and Yellow Door Energy (YDE), the renewable energy independent power producer (IPP) for businesses in the Middle East and Africa, announced the signing of a 24.5MWp solar power purchase agreement PPA).

The project, situated in Leeudoringstad, North West Province, will supply renewable energy under the PPA to POWERX who in turn will supply this electricity to its customers via the national grid. More than 40 000 solar panels will be installed, generating 57.5GWh of renewable energy in the first year of operation, offsetting 59 800 metric tons of carbon emissions.

The project will see the installation of a 43km overhead electrical line to connect the solar park to an Eskom substation, enhancing grid infrastructure and facilitating access to green electricity in the North West Province. Over 500 jobs will be created through numerous contractors, suppliers and manufacturers, with significant contribution to social and community development. Construction will begin by mid 2025, with commissioning expected in 2026.

As the independent power producer (IPP), Yellow Door Energy is responsible for financing, designing, constructing, commissioning, operating, and maintaining the Naledi Ya YDE Solar Park throughout the term of the PPA. Businesses are increasingly opting for the PPA model rather than investing their own capital in alternative energy solutions. This model enables companies to significantly reduce energy costs without their own upfront investment or operational risks, while focusing on their core operations and benefiting from green, reliable and cost-competitive electricity.

Thembani Bukula, CEO of POWERX, said, "As the leading energy trader in South Africa, we are delighted to sign this power purchase agreement with Yellow Door Energy. Renewable energy will be wheeled to our customers across the country who have a high demand for the renewable energy that is alternatively priced to the utility supply. By leveraging solar wheeling at the Naledi Ya YDE Solar Park, our customers can access even more green, affordable and reliable electricity.”

“We are honoured to sign this landmark power purchase agreement with POWERX, a leading energy trader in South Africa. This PPA with POWERX provides small to medium-scale off-takers the opportunity to benefit from long-term, reliable, cost-efficient, and clean electricity. At Yellow Door Energy, we continue to accelerate renewable energy adoption, whether through solar wheeling, on-site solar, and/or battery energy storage system (BESS) solutions. Through our PPA projects, we create local jobs, decarbonise industries, and contribute to the Just Energy Transition.”, said, Forbes Padayachee, CEO of Yellow Door Energy South Africa.