PPC Ltd, the leading Southern African supplier of cement and related products, and Yellow Door Energy (YDE), the leading renewable energy independent power producer (IPP) for businesses in the Middle East and Africa, today announced the signing of a landmark 24,5 MWp (20 MWac) solar power purchase agreement (PPA).
The project operates under a solar wheeling arrangement, where YDE’s solar park in Leeudoringstad, North West Province, will deliver clean electricity to four PPC operations via the Eskom grid. These include, PPC Slurry in the North West Province, PPC Dwaalboom in Limpopo and PPC De Hoek and PPC Riebeek in the Western Cape. More than 20 000 solar panels will be installed, generating 57,5-million kilowatt-hours (kWh) of clean electricity in the first year of operation and offsetting 59 800 tonnes of carbon emissions.
Commenting on the partnership, Ernesto Acosta, the COO at PPC, says: “We are excited to announce the signing of a solar power purchase agreement with YDE, marking the beginning of a long-term partnership. This agreement is our second partnership to secure renewable energy which further demonstrates PPC’s commitment to reducing reliance on traditional energy sources. The project is another step towards achieving our strategic objectives to rebuild a profitable and sustainable company.”
Forbes Padayachee, CEO of YDE South Africa, says: “We are proud to sign this monumental long-term power purchase agreement with PPC. Through this solar wheeling arrangement, PPC is able to secure access to clean, affordable and reliable electricity without further physical constraints on their premises. At YDE, we remain dedicated to advancing renewable energy solutions for commercial and industrial entities, creating local jobs and contributing to South Africa’s energy security and Just Energy Transition.”
The project includes the installation of a 43-km overhead electrical line to connect the solar park to an Eskom substation, enhancing grid infrastructure and facilitating access to clean electricity.
As the independent power producer, YDE is responsible for financing, designing, constructing, commissioning, operating and maintaining the Naledi Ya YDE Solar Park throughout the term of the PPA. Businesses are increasingly opting for the PPA model to go solar. This model enables companies to significantly cut energy costs without their own upfront investment or operational risks, while focusing on their core operations and benefiting from clean, reliable and cost-competitive electricity.
