The trading arm of private energy company NOA is gearing up to supply wheeled renewable electricity to multiple customers in South Africa following the National Energy Regulator of South Africa’s (Nersa’s) recent approval of its trading licence.

NOA Group CEO Karel Cornelissen says the licence enables NOA Trading to aggregate energy from the company’s own renewables generators and other independent power producers and supply it to Eskom- or municipal-connected customers across the country.

“Unlike embedded generation and physical bilateral agreements, this approach offers far greater flexibility by allowing customers access to a mix of utility scale solar PV, wind and battery storage from multiple generation facilities, without the complexity of contracting with multiple generators or requiring offtakers to justify a generation facility dedicated to their own consumption,” he explains.

NOA Trading has already entered into long-term generator power purchase agreements with two large wind projects of 140 MW and 94.5 MW apiece, one of which is owned by NOA and the other by a third-party.

Both projects, one in the Western Cape and the other in the Eastern Cape, are under construction, having achieved financial close.

NOA tells Engineering News that it has also entered into multiple energy supply agreements, including disclosed agreements with Old Mutual Properties, Netcare, Manganese Mining Company, and Tronox. Agreements are also in place with another listed real estate investment trust, a data centre customer and another smelter.

“In total NOA’s current offtake portfolio exceeds 1 300 GWh per annum, on flexible energy supply agreements ranging in tenor from one to 25 years.”

NOA reports that it has the necessary wheeling agreements to begin trading, but says it is continuing to work with Eskom, its customers and Nersa to update the various agreements and registrations to comply with the latest wheeling frameworks and regulatory requirements.

It was not immediately clear whether the licence, which was awarded at the end of January following public hearings last year, will be legally contested by Eskom Distribution, which is seeking a legal review of the trading licences granted by Nersa last year to CBI Electric Apollo, Discovery Green, Green Electron Market and GreenCo Power Services.

The State-owned company has objected to NOA’s licence on the same grounds advanced in relation to the other traders, which is that the traders are cherry picking its industrial customers.

NOA is not aware of Eskom having formally commenced any legal proceedings, however.

Engineering News did not receive an immediate reply to questions posed to Eskom on the matter.

Cornelissen argues that NOA Trading’s model will help maximise South Africa’s renewables generation potential, improve energy security, and meet a growing requirement among companies to decarbonise their operations.

“NOA is extremely excited to play a meaningful role in the transition of South Africa’s energy supply sector and contributing to commercial and industrial customers achieving their cost saving and decarbonisation goals, ensuring South African businesses remain globally competitive,” he added.