POWERX sign 25MW solar PPA with Yellow Door Energy in SA

South African electricity trading company, POWERX, has signed a 24.5MWp solar power purchase agreement (PPA) with Yellow Door Energy (YDE). The agreement will enable the supply of electricity from a solar power generation facility to be built in Leeudoringstad, North West province, South Africa.

Under the agreement, POWERX will purchase electricity from YDE’s Naledi Ya YDE Solar Park at a wholesale tariff and resell it to customers via the national grid. The project is expected to generate 57.5GWh of renewable energy in its first year, offsetting approximately 59,800 metric tons of carbon emissions.

“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,” said Thembani Bukula CEO of POWERX.

Construction of the solar power project is set to begin by mid-2025, with commissioning anticipated in 2026. The project will involve the installation of around 40,000 solar panels and the construction of 43km of overhead electrical lines to connect the solar park to an Eskom substation.

The project is expected to create approximately 500 jobs through contractors, suppliers, and manufacturers, contributing to social and community development in the Leeudoringstad area.

As the independent power producer (IPP), Yellow Door Energy will manage the financing, design, construction, commissioning, operation, and maintenance of the Naledi Ya YDE Solar Park throughout the PPA’s duration.

The PPA model is gaining traction among South African businesses as a way to access renewable energy without upfront capital investment or operational risks. This approach enables companies to reduce energy costs, focus on their core operations, and benefit from reliable, cost-competitive, and environmentally friendly electricity.

Forbes Padayachee, CEO of Yellow Door Energy South Africa, stated, “We are honoured to partner with POWERX, a leading energy trader in South Africa. This agreement provides small to medium-scale off-takers with access to long-term, reliable, and cost-efficient clean energy.”