JSE-listed cement producer PPC has signed a 20-year power purchase agreement (PPA) with Yellow Door Energy (YDE) for the supply of renewable electricity, wheeled through the Eskom grid, to four of its South African operations.

The electricity will be produced by a 24.5 MWp solar PV facility known as the Naledi Ya YDE Solar Park, which will comprise 20 000 PV panels and be constructed in Leeudoringstad, in the North West province.

The independent power producer, which includes Actis, the International Finance Corporation, Mitsui & Company and the Arab Energy Fund among its shareholders, will be responsible for financing, designing, constructing, commissioning, operating, and maintaining the solar park for the full PPA term.

The project includes the installation of 43 km of overhead electrical line to connect the solar park to an Eskom substation.

The wheeled electricity will be purchased for PPC’s operations at Slurry, in the North West province, Dwaalboom, in Limpopo, as well as De Hoek and Riebeek, in the Western Cape.

In a joint statement, PPC and YDE reported that 57.5-million kilowatt-hours of clean energy would be generated in the first year of operation, and 59 800 t of CO₂ emissions will be removed yearly.

The PPA is expected to become effective in October 2026.

PPC added that the PPA was in line with its decarbonisation goals, as well as meeting Carbon Border Adjustment Mechanism requirements.

PPC COO Ernesto Acosta said the agreement was the group’s second partnership to secure renewable energy and represented another step towards achieving its strategic objectives of rebuilding a profitable and sustainable company.

It had previously concluded 10 MW apiece embedded solar agreements with Sturdee Energy at Slurry and Dwaalboom.

The cement producer is also considering a new replacement plant in the Western Cape, able to produce 1.5-million tons of low-carbon cement yearly at an integrated facility equipped with dedicated solar generation, alongside technologies that improve energy efficiency, reduce coal consumption and lower emissions. It has entered into a memorandum of agreement with the Sinoma Overseas Development Company to advance the project, which could involve an investment of over R3-billion.

YDE South Africa CEO Forbes Padayachee added that, through its solar wheeling arrangement, PPC would secure access to clean, affordable and reliable electricity without upfront investment or operational risks.