South Africa’s energy landscape is taking a significant leap forward with the announcement of a 60 MW Power Purchase Agreement (PPA) between independent power producer (IPP) SolarAfrica and POWERX, the country’s first NERSA-licensed energy trader. This landmark deal is more than just a transaction—it represents a new model for power procurement that prioritizes flexibility, cost-effectiveness, and environmental responsibility.
At a time when the country continues to grapple with load-shedding and a volatile electricity supply, partnerships like these point to a sustainable and scalable path forward. Through the agreement, clean energy generated by SolarAfrica’s flagship 1 GW SunCentral utility-scale solar farm will be wheeled to POWERX customers—corporate and industrial businesses hungry for energy security and ESG-aligned procurement.
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The ability to “wheel” electricity—transporting renewable power across the national grid from the point of generation to the point of use—has been a game-changer in Europe. In South Africa, it is quickly catching on as a vital tool for modernizing and decentralizing energy access. POWERX’s business model, which aggregates supply from IPPs and distributes it to multiple end-users, offers a compelling, market-driven solution to the country’s energy woes.
David McDonald, CEO of SolarAfrica, emphasized that collaboration is key in accelerating the country’s renewable energy transition. “Finalising this agreement with POWERX is a prime example of how the renewable energy sector is working together to support businesses,” he said. His sentiments were echoed by POWERX CEO Thembani Bukula, who praised the swift conclusion of the agreement and reaffirmed the growing appetite for wheeled energy solutions in South Africa.
The deal also affirms SolarAfrica’s position as a trailblazer in South Africa’s commercial and industrial green energy space. Founded in 2011, the company has built a reputation for offering capex-free clean energy solutions that range from rooftop solar and battery storage to virtual energy services like wheeling and trading. It’s a formula that has earned SolarAfrica the Africa Solar Company of the Year award twice, in 2021 and 2023, from the Africa Solar Industry Association.
As South African businesses continue to face rising energy costs, pressure to meet carbon reduction goals, and unreliable supply from the national grid, the SolarAfrica-POWERX partnership could not be more timely. It allows businesses to bypass some of Eskom’s limitations, instead tapping into a decentralized, cleaner energy future—without the capital-intensive burden of self-generation.
More importantly, the deal marks a defining shift in the role of energy traders. No longer just intermediaries, traders like POWERX are becoming enablers of energy democratization—connecting producers and consumers in a manner that fosters competition, efficiency, and environmental stewardship.
With the first phase of SunCentral already under way, the deal’s execution signals that the future of energy in South Africa isn’t years away—it’s being built right now. If this model scales as expected, it may well usher in a new era of energy independence, business resilience, and climate-conscious development.
In a country urgently in need of solutions that are both practical and visionary, SolarAfrica and POWERX may have just provided a blueprint for what’s possible.
