Yellow Door Energy signs PPA for 24.5 MW solar wheeling project in South Africa

The 20-year power purchase agreement (PPA) will see PowerX, South Africa’s first licensed private sector electricity trader, distribute the energy produced to its customers via connection to the national grid.

Independent power producer Yellow Door Energy (YDE) has signed a 20-year power purchase agreement (PPA) with PowerX, South Africa’s first licensed private sector electricity trader.

The agreement will see YDE develop 24.5 MW of solar wheeling capacity at the Naledi Ya YDE Solar Park in Leeudoringstad, North West Province.

Construction, which will involve the installation of over 40,000 solar panels and 43km of overhead electrical line for connection to an Eskom substation, is due to begin by mid-2025, with commissioning expected in 2026.

Once completed, the project will supply 57.5 GWh of energy in its first year to PowerX, which will then distribute to its customers via connection to the national grid.

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

Under the terms of the PPA, YDE is responsible for financing, designing, constructing, commissioning, operating, and maintaining the Naledi Ya YDE Solar Park throughout the duration of the contract.

“Businesses are increasingly opting for the PPA model rather than investing their own capital in alternative energy solutions,” a statement from YDE adds. “This model enables companies to significantly reduce energy costs without their own upfront investment or operational risks, while focusing on their core operations and benefiting from green, reliable and cost-competitive electricity.”