In a move set to reshape South Africa’s energy landscape, independent power producer SOLA Group has unveiled a new energy service designed to save businesses up to R60m over a five year period.
An initial 52 MW of clean energy produced by the company will be available via Eskom’s grid. It represents a giant leap in the availability of renewables to large consumers of electricity.
Historically, South African businesses have been limited to energy contracts with Eskom or municipal suppliers, which often came with rigid terms and long durations, said Katherine Persson, managing director of SOLA Assets. “SOLA Group is addressing this gap by introducing a suite of capital projects that include large-scale renewable energy generation and advanced battery storage solutions that are in construction currently. These projects are designed to provide greater flexibility, catering to a wide range of energy user’s needs,” she said.
“This will change how companies approach energy procurement when seeking not only energy cost savings but also carbon reduction benefits,” Persson said.
The launch of the product allows South African businesses to have access to a flexible, cost-effective alternative for energy access, companies can also expect to reduce their carbon emissions by up to150,000 tons of Carbon Dioxide (CO2) over 5 years. This means that cost-benefit spans two key bottom line items; real cost reduction and responsible corporate citizenship.
Jonathan Skeen, Managing Director of SOLA Commercial, urged businesses across the economy to make the leap to renewable energy. “Our innovative new electricity contracts let companies purchase the exact amount of power they need, with contract durations tailored to their specific requirements. We’ve removed the usual long-term contract commitments to offer a low-risk path to quick and easy savings and carbon reduction. And, we’re selling power from real projects, and not planned developments that will only be financed and built after you’ve signed your contract.”
Companies can now enter short-term electricity purchase agreements, wheeled through the Eskom grid and only pay for the energy consumed. SOLA’s BESS (Battery energy storage solutions) offering also supports the grid by contributing energy during high load periods, when there is high demand for energy across the country (early mornings and evenings).
In the past, Persson said, large renewable energy projects in South Africa have traditionally involved lengthy Power Purchase Agreements (PPAs) and complex PPA negotiations with buyers, plus extensive financing conditions to be met before construction could begin. “This new energy offering is the first to allow buyers the opportunity to contract with financing risks already resolved, construction significantly advanced, and commercial operations imminent,” said Persson.
Through Eskom’s wheeling mechanism, the project will enable power sales to private energy users across the country, providing an unprecedented opportunity for businesses to secure clean energy under flexible terms.
Eskom’s wheeling mechanism, a key component of SOLA’s strategy, allows businesses connected to its network to benefit from PPAs with the provider’s renewable energy fleet, regardless of their location. Under this agreement, Eskom credits buyers for the renewable energy procured from Independent Power Producers (IPPs), facilitating an easy transition to more sustainable energy sources.
