Sappi and Enpower Trading reach Financial Close on South Africa’s largest private five-year electricity Power Purchasing Agreement for power sourced from SunCentral

Sappi Southern Africa and Enpower Trading are pleased to announce the successful achievement of reaching Financial Close on their groundbreaking 175 GWh per annum, five-year renewable energy Power Purchase Agreement (PPA). This milestone signals a critical step forward in the implementation of the project, which will see Sappi reduce its carbon footprint while advancing South Africa’s renewable energy sector.

The importance of financial close
Reaching financial close is a significant milestone, achieved to date by only a select few private power projects in South Africa. This achievement not only underscores the credibility and bankability of the five-year PPA, but also reflects the strong confidence shown by financial institutions in Enpower Trading and Sappi’s clean power solution. By facilitating Financial Close for SolarAfrica Energy’s utility scale SunCentral 1 PV plant (valued at R1.8 billion), Enpower Trading has played a pivotal role in driving the project forward, demonstrating its commitment to advancing renewable energy solutions.

“Financial close of the Sappi PPA solidifies the foundation of this transformative agreement and underscores the strength of our innovative trading solutions,” said James Beatty, CEO of Enpower Trading. “As pioneers of the five-year PPA tenure, Enpower Trading is thrilled to lead the way with this project, which represents the largest private five-year PPA to achieve Financial Close in South Africa. This accomplishment demonstrates the viability and scalability of shorter-tenure utility scale agreements in catalysing renewable energy development.”

“Reaching financial close on this agreement marks a significant milestone for our company and our nation. This achievement not only underscores our commitment to sustainable energy solutions but also highlights the remarkable progress being made in transforming our country’s energy landscape. At Sappi Southern Africa, we are proud to be at the forefront of this transformative journey, driving innovation and fostering partnerships that will ensure a brighter, more sustainable future for all. This agreement enables us to demonstrate leadership in sustainable business practices, reduces our reliance on fossil fuels, and supports SDG7: Clean Energy, “commented Graeme Wild, CEO of Sappi Southern Africa.

Pioneering the five-year PPA tenure
The five-year PPA model offers a groundbreaking alternative to traditional long-term agreements. By providing tenure flexibility, this model has unlocked new opportunities for companies of all sizes to purchase wheeled energy. Enpower Trading’s leadership in this space has been pivotal in unlocking the potential for short-tenure PPAs to drive significant renewable energy investments.

“This milestone project illustrates the power of innovation in the energy trading sector,” said Beatty. “Enpower Trading’s approach to the five-year PPA model delivers further liquidity to the market by ensuring financial feasibility for developers for a much wider range of projects than traditional long-term PPAs only, alongside delivering alignment with the business needs of energy off-takers like Sappi. We believe this model is a game-changer for the South African market.”

Private sector innovation and green leadership
The power supplied through this agreement will reduce Sappi SA and Sappi Limited’s Scope 1 and Scope 2 emissions by 6% and 4%, respectively, aligning with Sappi’s Science-Based Target (SBTi) objectives and the broader goal of achieving net zero emissions.

The SunCentral PV project, operated by SolarAfrica Energy, is a cornerstone of South Africa’s renewable energy transition. As one of the country’s largest solar farms, it highlights the potential of private-sector-driven renewable projects to scale up clean energy solutions. 

“Private-sector innovation is critical to solving the energy challenges facing South Africa,” added Beatty. “Through this partnership, we’re not just providing cleaner, more affordable power—we’re enabling an entire ecosystem of cleaner energy development that supports economic growth, decarbonisation, and energy reliability.”

Supporting a sustainable future
The integration of renewable energy into Sappi’s operations is another step in the company’s journey to build a more circular economy and reduce reliance on fossil fuels. The collaboration between Sappi and Enpower Trading offers a replicable model for other industrial players seeking to navigate the transition to clean energy.

Source: Sappi

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