POWERX, a licensed private sector electricity trader in South Africa, and Yellow Door Energy (YDE) on Monday signed a 24.5 Megawatt peak (MWp) solar power purchase agreement (PPA) in Leeudoringstad, North West.

YDE is a leading renewable energy independent power producer (IPP) in the Middle East and Africa.

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

"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," YDE said in a statement.

The Naledi Ya YDE Solar Park, as the initiative is dubbed, will see more than 40 000 solar panels installed, generating 57.5 Gigawatt- hours of renewable energy in its first year alone. This output is expected to offset 59 800 metric tons of carbon emissions, aligning with South Africa’s ambitions under the Just Energy Transition framework.

POWERX will “wheel” this solar energy - transmitting it through the national grid - to its customers nationwide, offering a competitively priced alternative to traditional utility supplies. Construction is slated to begin mid-2025, with commissioning targeted for 2026.

Thembani Bukula, the CEO of POWERX, said, “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.”

Forbes Padayachee, the CEO of Yellow Door Energy South Africa, said, "This PPA with POWERX provides small to medium-scale off-takers the opportunity to benefit from long-term, reliable, cost-efficient, and clean electricity. "

Yellow Door Energy, as the IPP, will finance, design, build, operate, and maintain the facility throughout the PPA’s term, relieving businesses of upfront capital costs and operational risks.

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