South African electricity trader Discovery Green has confirmed that it has signed supply agreements for wheeled electricity with five companies in the mining, property and hospitality sectors, where the appetite for clean energy and price certainty remains strong despite the lowering of the loadshedding risk.

Having confirmed a five-year power purchase agreement with platinum miner Impala Platinum (Implats) on January 27, the Discovery Group company reported that it had also signed agreements with KP Lime, The Capital Hotels and Apartments, Balwin Properties, and Fortress REIT Limited.

In an interview with Engineering News, Discovery Green head Andre Nepgen said the electricity would be sourced from multiple wind and solar facilities being advanced to construction by independent power producers (IPPs) in various South African provinces, with the first wheeled electricity for Implats expected by the end of 2026.

Discovery Green is entering into exclusive procurement contracts with the IPPs (mostly wind generators) with the intention of supplying the electricity to multiple customers pursuing both decarbonisation objectives and price-path certainty.

Discovery Green is not an IPP investor itself, but rather a long-term offtaker and trader of the renewable electricity produced by IPPs and wheeled through Eskom and municipal networks.

By contracting across multiple generation sites and entering into contracts with multiple end customers, Nepgen said Discovery Green was able to offer PPA terms that were flexible in duration and could also match customer demand profiles.

The five-year PPA with Implats, for instance, will supply 90% of the electricity needs for Impala Refineries in Springs, Gauteng, cutting the operation’s Scope 2 greenhouse-gas emissions by more than 852 000 t over the period and delivering 130 000 MWh of electricity yearly at a tariff that is decoupled from Eskom’s rising tariffs.

The PPA with KP Lime, meanwhile, is for 10 years and will involve a yearly supply of 54 000 MWh of green electricity for the Bowden mine, in the Northern Cape, to meet 90% of its power needs.

A leading producer and distributor of burnt lime and dolomite, KP Lime was owned by IMR Metallurgical Resources and CEO Aneesh Misra said the initiative was aligned closely with the multinational’s sustainability goals.

Nepgen also confirmed that long-term agreements of between 10 and 15 years had been concluded late last year with The Capital Hotels and Apartments, Balwin Properties, and Fortress REIT.

Collectively, the companies are seeking to replace more than 90% of their electricity demand with wheeled solar and wind electricity, reducing their yearly carbon emissions by a combined 39 000 t.

The 15-year agreement with The Capital Hotels and Apartments involved the yearly supply of 5 000 MWh for three of the company’s properties in Gauteng, with founder and CEO Marc Wachsberger indicating that Discovery Green was selected for its high coverage and flexible, platform-based contracting.

Balwin Properties CEO Steve Brookes indicated that its 20-year contract was for the supply of 13 600 MWh of renewable energy yearly for four Balwin sites, while Fortress CEO Steven Brown indicated that the 10-year wheeling arrangement would increase Fortress’s renewable-energy penetration to up to 100% across 14 buildings.

On what impact the likely ending of loadshedding and the potential slowing of decarbonisation progress as a result of the return of climate-sceptic Donald Trump to the White House could have on Discovery Green, Nepgen was sanguine.

The sharp fall in solar PV and wind costs had made the two variable renewable energy solutions highly attractive from a cost perspective and domestic companies, he said, were currently prioritising affordability and price-path certainty amid the welcome improvements to security of supply.

In addition, exporters were still aiming to mitigate the imposition of carbon taxes and border adjustments that remain medium-term risks despite recent developments in the area of global climate politics.

The more immediate challenges, therefore, relate to access to the grid for new wind and solar projects and the need to navigate Eskom’s legal challenge to the National Energy Regulator of South Africa’s recent approval of Discovery Green’s trading licence.

Nepgen expressed optimism that solutions could be found to both issues.