South Africa’s first licensed, private electricity trader POWERX announced that it has signed a dedicated guarantee facility underwritten by Lombard Insurance Company Limited and managed by specialist underwriting manager Credeq Africa. The facility is designed to support the rapid growth of the private power market by providing the guarantees required for project development and execution.

The first guarantee under the facility has already been issued, supporting one of POWERX’s signed Power Purchase Agreements (PPAs). This milestone marks the beginning of a series of guarantees to be rolled out against a strong and maturing pipeline.

POWERX has been trading electricity in South Africa for over a decade and is the first company to be licensed by NERSA as an independent electricity trader. As a pioneer in the sector, POWERX aggregates renewable generation and supplies commercial and industrial customers via bankable, flexible structures that simplify wheeling across the grid.POWERX’s current pipeline includes:

• 15 MW already under construction
• 25 MW, for which a Lombard guarantee has been issued, is currently in the process of reaching financial close with Standard Bank
• 24.5 MW solar PV project, in advanced financial close discussions, with Nedbank as the mandated lead arranger and lender

A further 160 MW expected to reach financial close before the end of 2025, with an additional 400 MW targeted for the subsequent year

“By understanding the nuances of the market, the specific requirements of the client and beneficiary, the underlying agreements, and the triggers for non-performance, we were able to structure a guarantee product that best suits our client’s needs and complements the underlying contractual obligations,” said Credeq senior underwriter Mark Massey.

“Standard Bank is pleased to be working with the Parsons Power Park in Gqeberha. The guarantee facility provided by POWERX is one of the key steps required for the project to reach financial close,” said Standard Bank Head of Project Finance Sherrill Byrne.

Alongside this development, POWERX is already trading over 100 GWh/y of renewable energy, directly connecting renewable generation with corporates and commercial and industrial demand.

“Guarantees are often the missing link between a signed PPA and real megawatts on the grid,” said POWERX CEO Thembani Bukula. “This facility with Lombard, through Credeq, enables us to accelerate delivery for our customers and generation partners. With projects already in construction and financial close processes under way, we are moving from intent to execution at scale.”

Technology-driven Leadership

Since 2017, POWERX has operated its own proprietary trading platform – a sophisticated system that dynamically allocates generation to consumers, integrates with multiple sources of supply, and connects seamlessly with diverse billing systems. This technology provides unmatched transparency and efficiency in South Africa’s emerging private power market.

Through its trading activities, POWERX has already delivered more than R13-million in savings for its customers. Importantly, its model enables green energy access for businesses that would otherwise have had to raise capital for their own renewable sites – or even relocate to areas where renewable wheeling is possible, risking significant job losses. By bridging this gap, POWERX keeps industry competitive, protects employment, and expands the reach of South Africa’s energy transition.

South Africa’s private power market is scaling quickly as corporates demand reliable, cost-competitive and lower-carbon electricity. By securing dedicated guarantee support, POWERX is positioned to compress project timelines and reduce counterparty risk – ensuring that PPAs translate into construction, financial close and, ultimately, electrons on the grid.