Sappi Southern Africa and Enpower Trading have reached Financial Close on their groundbreaking 175 GWh per annum, five-year renewable energy Power Purchase Agreement (PPA). This milestone signals a critical step forward in the implementation of the project, which will see Sappi reduce its carbon footprint while advancing South Africa's renewable energy sector. 

Reaching financial close is a significant milestone achieved by only a select few private power projects in South Africa. This achievement not only underscores the credibility and bankability of the five-year PPA but also reflects the strong confidence shown by financial institutions in Enpower Trading and Sappi's clean power solution. 

By facilitating Financial Close for SolarAfrica Energy's utility-scale SunCentral 1 PV plant (valued at R1.8 billion), Enpower Trading has played a pivotal role in driving the project forward, demonstrating its commitment to advancing renewable energy solutions. 

"Financial close of the Sappi PPA solidifies the foundation of this transformative agreement and underscores the strength of our innovative trading solutions," said James Beatty, CEO of Enpower Trading. 

"As pioneers of the five-year PPA tenure, Enpower Trading is thrilled to lead this project, representing the largest private five-year PPA to achieve Financial Close in South Africa. This accomplishment demonstrates the viability and scalability of shorter-tenure utility scale agreements in catalysing renewable energy development." 

"Reaching financial close on this agreement marks a significant milestone for our company and nation. This achievement underscores our commitment to sustainable energy solutions and highlights the remarkable progress in transforming our country's energy landscape", said Graeme Wild, CEO of Sappi Southern Africa. 

"At Sappi Southern Africa, we are proud to be at the forefront of this transformative journey. We drive innovation and foster partnerships to ensure a brighter, more sustainable future for all. This agreement enables us to demonstrate leadership in sustainable business practices, reduces our reliance on fossil fuels, and supports SDG7: Clean Energy", commented Wild.

Pioneering PPA

The five-year PPA model is an alternative to traditional long-term agreements. It unlocks new opportunities for companies to purchase wheeled energy through tenure flexibility. Enpower Trading's leadership in this space has been pivotal in unlocking the potential for short-tenure PPAs to drive significant renewable energy investments. 

"This milestone project illustrates the power of innovation in the energy trading sector," said Beatty. "Enpower Trading's approach to the five-year PPA model delivers further liquidity to the market by ensuring financial feasibility for developers for a much wider range of projects than traditional long-term PPAs only, alongside delivering alignment with the business needs of energy off-takers like Sappi. We believe this model is a game-changer for the South African market." 

Green energy

SolarAfrica provides a suite of capex-free green energy solutions to the commercial and industrial sectors in Southern Africa. The holistic suite includes on-site solutions such as solar energy and battery storage and virtual solutions like wheeling, trading and aggregation. As part of the Starsight Energy group, SolarAfrica partners with businesses in South Africa seeking an energy solution that provides power security, cost savings and carbon reduction

Private sector leadership 

The power supplied through this agreement will reduce Sappi SA and Sappi Limited's Scope 1 and Scope 2 emissions by 6% and 4%, aligning with Sappi's Science-Based Target (SBTi) objectives and the broader goal of achieving net zero emissions. 

The SunCentral PV project, operated by SolarAfrica Energy, is in De Aar in the Northern Cape. Phase 1, consisting of 342 MW, is currently under construction with Phases 2 and 3 bringing the project total to 1GW, making it one of the country's most significant projects of its kind. SolarAfrica reached financial close on SunCentral 1 (representing the first 114 MW of Phase 1) in December 2024.

"Private-sector innovation is critical to solving the energy challenges facing South Africa," added Beatty. "Through this partnership, we're not just providing cleaner, more affordable power—we're enabling an entire ecosystem of cleaner energy development that supports economic growth, decarbonisation, and energy reliability."