South Africa’s first licensed private electricity trader, POWERX, has signed a 24.5MWp solar power purchase agreement (PPA) with Yellow Door Energy (YDE), a leading independent power producer (IPP) for businesses in the Middle East and Africa. The agreement marks a significant step in expanding renewable energy access in the country.
The solar project, located in Leeudoringstad, North West Province, will generate 57.5GWh of renewable energy in its first year, offsetting approximately 59,800 metric tons of carbon emissions. Under the agreement, POWERX will distribute the electricity to its customers nationwide through the national grid, leveraging solar wheeling at the Naledi Ya YDE Solar Park.
Thembani Bukula, CEO of POWERX, emphasized the importance of the partnership, stating, “As the leading energy trader in South Africa, we are excited to collaborate with Yellow Door Energy. This agreement allows us to provide businesses with cost-competitive renewable energy as an alternative to utility supply, ensuring access to green and reliable electricity.”
Forbes Padayachee, CEO of Yellow Door Energy South Africa, highlighted the benefits of the deal, saying, “This PPA creates new opportunities for small and medium-scale off-takers to access affordable and sustainable power. At Yellow Door Energy, we are committed to accelerating the adoption of renewables through solar wheeling, on-site solar, and battery energy storage solutions. Our projects contribute to job creation, industry decarbonization, and the Just Energy Transition.”
The initiative includes the construction of a 43km overhead electrical line connecting the solar park to an Eskom substation, strengthening grid infrastructure and enhancing access to renewable power in the region. The project is expected to create over 500 jobs through various contractors, suppliers, and manufacturers while also contributing to local community development.
Construction is set to commence by mid-2025, with commissioning expected in 2026. Yellow Door Energy, as the IPP, will oversee the financing, design, construction, operation, and maintenance of the solar park throughout the PPA term.
The agreement reflects a growing trend among businesses to adopt the PPA model, enabling them to reduce energy costs without upfront capital investment or operational risks while securing a stable supply of clean electricity.
