Renewables
Enpower and Sappi begin renewable power wheeling in South Africa
Enpower Trading and Sappi Southern Africa have commenced the supply of wheeled renewable electricity under a major corporate agreement.
Key points
- Deliveries have started under South Africa's largest private five-year PPA of its scale.
- The arrangement supplies 175 GWh of renewable electricity annually to three Sappi sites.
- Power is sourced from SolarAfrica Energy's R1.8 billion SunCentral 1 PV plant.
What happened
Enpower Trading and Sappi Southern Africa have initiated the delivery of wheeled renewable electricity to Sappi operations, according to Green Building Africa. The arrangement operationalises South Africa's largest corporate power purchase agreement of its specific scale and duration. Signed initially in 2024, the transaction achieved financial close in February 2025.
The agreement entails the supply of 175 GWh of renewable electricity every year over a five-year period. Monthly volumes transported to the three designated Sappi sites range between 8 GWh and 16 GWh. The electricity originates from the SunCentral 1 photovoltaic plant, a utility-scale solar facility developed by SolarAfrica Energy with a valuation of R1.8 billion.
Project impact and structure
The five-year delivery model is designed as an alternative to traditional long-term contracts. By offering increased tenure flexibility, the structure aims to facilitate wheeled energy purchases for companies of varying sizes and improve overall market liquidity. Green Building Africa reported that the framework makes a broader array of generation projects financially viable for developers.
For Sappi, the integration of renewable power contributes directly to corporate sustainability targets. The delivered electricity reduces Sappi Southern Africa's Scope 1 emissions by 6% and Sappi Limited's Scope 2 emissions by 4%. These reductions align with the company's Science Based Targets initiative objectives and its wider path toward net zero emissions.
Why it matters
For energy investors and policymakers across the continent, this arrangement demonstrates the commercial viability of private-sector-led wheeling models in overcoming grid constraints and scaling up clean energy access. South Africa's electricity sector has historically faced supply challenges, with World Bank figures indicating a renewable share of electricity output of 6.4% in 2021 and an electricity use per person of 3,308.2 kWh in 2024, alongside a 90.2% electricity access rate for the population in the same year.
Structuring medium-term PPAs provides a template for corporate offtakers seeking to bypass traditional utility bottlenecks while meeting strict decarbonisation goals. As African industrial sectors look to integrate higher volumes of renewables without relying on sovereign balance sheets or multi-decade commitments, scalable private wheeling arrangements offer a functional pathway to accelerate the energy transition.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
6.4% of electricity in South Africa was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
