Electricity trader Discovery Green has signed a power purchase agreement with Red Rocket that unlocks the second phase of the independent power producer’s (IPP’s) 150 MW Overberg Wind Farm, located 12 km west of Swellendam in the Western Cape.

The offtake agreement is the first to be concluded by Discovery Green, which is part of the larger JSE-listed Discovery Group.

The Overberg Wind Farm Phase 2 will deliver over 489 GWh yearly, which will be wheeled to Discovery Green clients, including Impala Platinum, Fortress Real Estate Investments, Balwin Properties, KP Lime, and The Capital Hotels and Apartments. 

The project will begin full commercial operation in 2027, and together with Phase 1 represents a total investment of over R13-billion, which has been financed by a group involving Absa Bank, Standard Bank, and the Development Bank of Southern Africa. 

Red Rocket CEO Matteo Brambilla said in a statement that the Overberg Wind Farm represented the future of private-sector-driven renewable energy, describing the multi-offtaker approach being facilitated through Discovery Green as a “landmark” deal.

Discovery Green head Andre Nepgen argued the agreement set a strong precedent for “enabling a new renewable energy model that meets the needs of a diverse range of businesses”.

“The renewable energy market is still in its infancy, and delivering a project of this scale and complexity required us to chart new ground,” Nepgen added.

Discovery Green recently entered into a partnership with Sasol to launch Ampli Energy, which aims to provide renewable electricity to small- and medium-sized firms that are unable to enter into long-term power purchase agreements of their own.

“With the Overberg Wind Farm project, Discovery Green is scaling its impact across sectors, from heavy energy users to fast-moving consumer brands,” Nepgen said.

Brambilla also underlined the importance of the project to Red Rocket, a Cape Town-based IPP that was founded in 2012.

“Our energy portfolio now boasts almost 4 GW of projects in operation, under construction, awarded preferred bidder status, moving towards financial close, and commencing construction.

“We’ve achieved phenomenal success in the Renewable Energy Independent Power Producer Procurement Programme with two recent achievements, including Bid Window Five projects, Brandvalley and Rietkloof wind farms, reaching commercial operations earlier this year.

“Overberg Wind Farm also joins our growing portfolio in the commercial and industrial market, with Witberg Wind Farm, in partnership with Sibanye-Stillwater, currently under construction.”