A 155 MW Mpumalanga wind energy project has reached financial close, following the signing of a 15-year power purchase agreement (PPA) between Seriti Green and licensed energy trader Energy Exchange of Southern Africa (EXSA).

The R5-billion project forms part of Seriti Green’s larger 900 MW Ummbila Emoyeni hybrid energy complex to be built in phases across 27 000 ha in the province and which will incorporate wind, solar, and battery storage components. 

The 155 MW project will incorporate 25 wind turbines and will produce some 525 GWh yearly once in full production.

It is expected to begin generating electricity in October 2027 in a part of the country currently regarded as the epicentre of coal mining and coal-fired power generation, with Seriti Green itself partly owned by Seriti Resources, which mines coal.

Backed by Remgro and Rand Merchant Bank, EXSA was issued with a trading licence by the National Energy Regulator of South Africa (Nersa) in 2022, enabling it to buy renewable energy in bulk under long-term contracts with independent power producers for resale.

Through the PPA with Seriti Green, EXSA will procure the electricity generated by the wind farm for wheeled distribution to its portfolio of customers that includes South African corporates and industrial facilities.

“Reaching financial close on this project is a positive step forward for the South African renewable energy market, demonstrating the private sector’s key role in solving the South African energy supply gap as we continue to build our commercial and industrial portfolio,” EXSA CEO Wayne Cowie said in a statement.

Seriti Green CEO Peter Venn said the agreement marked a new chapter for South Africa’s energy market, whereby independent power producers and traders were able to deliver reliable, clean power with long-term impact.

“Working with EXSA, allows us to expand our footprint in Mpumalanga.

“Supporting the electricity trading market drives generation growth which is excellent for the economy, social development and the just energy transition” Venn said.

His comments come against the backdrop of some uncertainty for traders, triggered by a court case initiated by Eskom to have the licences of five traders, which were approved by Nersa in 2024, reviewed and set aside, citing the lack of clear trading rules.

Nersa has initiated a process to finalise the rule by June next year.

Organised business has slammed Eskom’s legal action, with Business Leadership South Africa and Business Unity South Africa issuing a joint statement calling on the utility to “promptly withdraw all legal challenges”.