South African stationery and plastic products manufacturer Penflex will install a hybrid solar PV and battery energy storage system (BESS), which will halve its demand for electricity generated by State-owned Eskom and sustainably cut down on its biggest expense.

The impact of the sustainable renewable-energy solution will help to secure the livelihoods of the families of its 300 employees and significantly reduce losses caused by wastage resulting from loadshedding, the company says.

Renewable energy project developer Blue Energy Africa will build and implement the system for Penflex under a 20-year solar power purchase agreement (PPA) solution.

The 1.3 MW hybrid solar PV and BESS to be implemented at Penflex’s factory in Killarney Gardens, Cape Town, will be capable of generating more than 1 900 MWh/y.

“Electricity cost is one of our highest line-item expenses. A lower future cost of electricity is critical to the sustainability of the company,” says Penflex CEO Sean Stuttaford.

“This investment is a large PPA agreement and a long-term commitment for a company of our size,” he says.

Penflex makes writing instruments, plastic homeware solutions, components for the window blind industry and multi-use large bottles for the water industry. It is among the top-three writing instrument brands in South Africa and one of the top two suppliers to the window blind component market in the UK.

Its plastic injection-moulding and assembly of retail-ready products operate 24/7 and span two sites of 18 000 m². The factory houses 80 injection-mould machines, several blow moulders, two extrusion machines and a large compounding plant.

It has 13 automated machines for the automatic assembly of the products and employs 300 people. It operates day and night shifts across the factories and has a sales presence in large South African cities as well as in the UK.

Any load reduction or loadshedding has a significant impact on its operations. Losses include material waste, equipment efficiency losses and additional stockholding levels to try to mitigate a reduction in on-time delivery to customers, he highlights.

“In the beginning of 2023, when Eskom's loadshedding was at its worst, the impact on the business was devastating. If we had not commissioned a generator quickly, the company would likely have closed its doors by April of that year.

“The generator, however, could run only a third of the plant and at vast expense. Even with a generator, most machines had to be stopped during loadshedding periods, resulting in material waste and lost production.

“A solar and battery solution will ensure a constant flow of production in accordance with a known production plan,” Stuttaford explains.

“Eskom will remain our base load, but the new systems will provide us with the ability to mitigate loadshedding events and to reduce the reliance on Eskom during peak periods and reduce the associated costs.”

Further, loadshedding is not only financially devastating, but also unpleasant for the night shift staff who had to sit around for 2.5 hours doing menial tasks, sometimes up to twice a night with battery-powered lamps waiting for the power to come back on.

“The negative impact of loadshedding on staff morale is underestimated and increases concerns about short-time or retrenchments,” he highlights.

“Penflex shares our deep commitment to sustainable practices and environmental stewardship. By integrating renewable energy into its operations, Penflex is reducing its carbon footprint, and setting a strong example for corporate responsibility in South Africa,” says Blue Energy Africa CEO Marcel Steinberg.

“This partnership is a significant step forward in our mission to power the future with clean, reliable energy,” he avers.

Meanwhile, the project was funded by Gaia Fund Managers’ Renewables Real Estate Investment Trust, which is listed on the Cape Town Stock Exchange.

“We are excited by the addition of another quality client to our renewable-energy portfolio. This shows that one can profit with a purpose while mitigating climate change and bolstering job security for the employees of Penflex,” says Gaia chief investment officer Dr Hendrik Snyman.