Yellow Door Energy and POWERX Sign 25 MW Solar PPA in South Africa

Yellow Door Energy (YDE), an independent power producer (IPP) in the Middle East and Africa, has signed a 24.5 Megawatt peak (MWp) solar power purchase agreement (PPA) with POWERX, a licensed private electricity trader in South Africa. The project, named Naledi Ya YDE Solar Park, will be located in Leeudoringstad, North West, and is set to play a key role in supporting South Africa’s transition to renewable energy.

A critical component of the initiative is the installation of a 43km overhead electrical line, connecting the solar park to an Eskom substation. This will enhance the region’s grid infrastructure and expand access to clean electricity in North West province.

According to YDE, the project is expected to create over 500 jobs through various contractors, suppliers, and manufacturers, with a strong focus on social and community development. Construction is scheduled to begin by mid-2025, with commissioning anticipated in 2026.

Once operational, Naledi Ya YDE Solar Park will feature more than 40,000 solar panels, generating approximately 57.5 gigawatt-hours (GWh) of renewable energy in its first year. The facility is expected to offset around 59,800 metric tons of carbon emissions annually, supporting South Africa’s Just Energy Transition framework and contributing to the country’s renewable energy goals.

POWERX will facilitate the transmission of the solar energy through the national grid via a process known as "wheeling," allowing customers nationwide to access a competitively priced alternative to traditional utility supplies.

Thembani Bukula, CEO of POWERX, highlighted the importance of this approach, stating, “Renewable energy will be wheeled to our customers across the country who have a high demand for the renewable energy that is alternatively priced to the utility supply.”

Forbes Padayachee, CEO of Yellow Door Energy South Africa, emphasized the benefits of the agreement, saying, “This PPA with POWERX provides small to medium-scale off-takers the opportunity to benefit from long-term, reliable, cost-efficient, and clean electricity.”

As the IPP, Yellow Door Energy will finance, design, build, operate, and maintain the facility throughout the PPA’s term, ensuring that businesses can access clean energy without incurring upfront capital costs or operational risks.