Energy trader Discovery Green and fuels and chemical group Sasol have teamed up to form a new venture that will supply wheeled renewable electricity to small and medium-sized enterprises (SMEs) that are keen to reduce their carbon footprints but are not in a position to sign multidecade power purchase agreements (PPAs).

Known as Ampli Energy, the new entity was launched in Sandton by Discovery CEO Adrian Gore and Sasol CEO Simon Baloyi at an event that was also addressed by Electricity and Energy Minister Dr Kgosientsho Ramokgopa, who described it as a pioneering move to “democratise” access to green electricity.

Baloyi announced that Sasol had set aside an immediate 450 GWh of electricity yearly for Ampli Energy customers as part of the first phase.

A portion of this supply will arise from Sasol’s operating 69 MW Msenge Emoyeni Wind Farm, in the Eastern Cape, but the partners have also dedicated an initial 150 MW of capacity in total to the venture, representing an investment in new generation of R4-billion.

Baloyi noted that Sasol had already entered into PPAs for more than 750 MW of new wind and solar PV generation and that it was on track to procure 1 200 MW by 2030.

Discovery Green, meanwhile, is also procuring renewables both for the conclusion of long-term PPAs with energy-intensive firms and now for Ampli Energy, through which it will offer a short-term ‘membership’ model on the back of its trading licence.

Discovery Green CEO Andre Nepgen reported that Nando’s, Vida e Caffè, Hatfield Motor Group, NetFlorist and several nongovernmental organisations had already signed up as Ampli Energy members and that the “first tranche” was now officially also open to other SMEs.

The intention is to increase the amount of renewable electricity available in future tranches as new generation capacity is added and made available for wheeling through Ampli Energy.

Describing SMEs as the “engine room” of growth and job creation, Gore said that the sector tended to be overlooked in the energy transition, where scale and long-term PPAs were typically required for renewables investments.

SMEs, he said, could not commit to the long-term agreements needed to unlock the massive capital expenditure needed or build new wind or solar PV projects.

Through Ampli Energy, such enterprises would be able to buy renewable electricity on a “hassle-free” month-by-month basis, while replacing a large portion of their fossil-based electricity with green grid-supplied electricity.

CASHBACK PAYMENTS

Negpen told Engineering News that Ampli members would continue to pay their monthly electricity bill as normal to their municipal supplier or Eskom, and would receive monthly cashback payments arising from the differential between that tariff and the lower-cost of the wheeled renewable electricity.

“Ampli membership comes with no fees, no hassle and no risk – it's just clean energy,” he enthused. “And we are actually rewarding customers by moving to renewable energy through the cashback payments.”

The financial reconciliation for the cashback payment could be finalised using Eskom’s recently launched Virtual Wheeling platform, which Negpen confirmed with Engineering News Ampli would be joining, but alternative platforms could also be used.

While Eskom is still opposing Discovery Green’s trading licence, Negpen reported that the company had participated in Eskom’s Virtual Wheeling pilot, and expressed confidence that a resolution would be found with Eskom over its licence.

Through signing up to Ampli Energy, businesses also receive Renewable Energy Certificates (REC) free of charge, helping them to reduce most of their Scope 2 emissions.

“Ampli Energy retires them on the company’s behalf, every megawatt-hour is linked to a REC and never split,” Negpen assured.

“I think what we have launched is very different and very powerful.

“It de-risks the transition to green electricity for a lot of businesses out there; we hope we can have a substantial impact on the emissions of the country and the emissions of the businesses we serve,” he concluded.