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Terra Firma to build R1.3bn solar PV programme

16th October 2024

By: Marleny Arnoldi

Deputy Editor Online

     

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Renewable-energy company Terra Firma has announced a new large-scale solar energy build programme that will see customers gain access to wheeled energy from August 2026.

The R1.3-billion programme will deliver a combined 110 MW of wheeled energy services once completed.

CEO Grant Berndsen says the project will provide the lowest-cost electricity to customers as Eskom’s tariffs continue to increase at above-inflation rates, as well as sustainability benefits in the form of lower emissions.

“Commercial and industrial customers specifically in the manufacturing, mining and digital infrastructure sectors with power purchasing agreements (PPAs) in place will benefit from cost-effective renewable-energy delivered through Eskom's grid.

“We believe wheeling will be a vital part of South Africa's rapidly evolving energy sector, providing multiple benefits that align with the country's broader energy and sustainability goals,” he adds.

Terra Firma is already developing the 87 MW Hammanskraal and the 23 MW Rietfontein solar PV projects, in Gauteng.

All the wheeling plants will interconnect to Eskom's distribution system, enabling customers with signed PPAs to maximise their low-carbon energy supply through flexible, off-site solutions, particularly in instances where embedded generation options have been maximised, are limited or are unfeasible.

If granted, Eskom could hike prices to direct customers by 35.15% in 2025, with municipal customers facing a 43.55% price hike by June 2025.

Berndsen says that the wheeling projects, once completed, could deliver up to 40% discount to customers’ current energy costs.

"We are currently in discussions with commercial and industrial customers to establish long-term energy strategies which include a combination of embedded solar and battery energy storage systems with a top-up of wheeled energy for the balance of their daytime operations.

“Once live, we will draw on our experience with commercial solar projects throughout South Africa as well as our smart metering and software platform to deliver a world-class energy wheeling offering to corporate South Africa,” he explains.

Energy wheeling is a type of financial transaction that enables energy producers to supply generated electricity from a generation site to consumers or buyers in a separate location.

As part of its offering, Terra Firma will implement a smart metering system at both the customer's site and generation facility.

Using the company’s proprietary software platform, the energy generated is reconciled and is offset against the monthly utility time-of-use tariff schedule, delivering significant savings to customers.

“We have made substantial investments into our smart metering software solutions to deliver greater visibility, control and data accuracy to our customers’ energy management,” says Berndsen.

By leveraging the intelligent energy data delivered using Terra Firma’s systems, customers can make more informed decisions over their energy needs, with the ability to integrate next-gen technologies such as artificial intelligence for greater energy and operational efficiency as well as realizing maximum benefit of a project’s green attributes.

The company expects to reach financial close in the second quarter of 2025, which will be followed by an 18-month construction period.

"Customers will gain access to the wheeled energy from August 2026 and receive cost savings as well as carbon credits for purchasing renewable energy," Berndsen confirms.

The company is currently offering customers PPAs from five to twenty years in duration at flexible terms.

“We are ready to provide guidance to corporate South Africa around the role that energy wheeling can play in their cost of energy supply, drawing on our extensive experience within the private sector as well as our understanding of the regulatory landscape and network expertise,” Berndsen concludes.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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