Although the virtual wheeling power purchase agreement (PPA) between telecommunications company Vodacom and renewable-energy company SOLA Group draws inspiration from international corporate PPA models, it is uniquely South African in design, says SOLA Group commercial MD Jonathan Skeen.

He explains that although the virtual wheeling PPA reflects global best practice, it has been tailored to the realities of State-owned power utility Eskom’s grid and regulatory framework, creating a first-of-its-kind solution in an African country.

The power will be sourced from the 195 MW solar PV Springbok Solar Power Project, in Virginia, in the Free State, which is Africa’s first multi-buyer, flexible energy wheeling facility, and SOLA Group’s “most significant” project to date.

“We are proud to have announced the successful and early commercial operations date for Springbok Solar Power Project, earlier this month,” Skeen adds.

For Vodacom, virtual wheeling offers access to renewable electricity at scale, thereby reducing carbon emissions, supporting the realisation of its net-zero target for 2035, and mitigating exposure to escalating tariffs.

Significantly, it also enables Vodacom to power operations in municipalities where access to renewable energy was previously unfeasible.

For SOLA, the advantage lies in pioneering a multi-buyer model that consolidates large and geographically dispersed clients into a single, bankable project. This approach facilitates the financing of utility-scale renewable-energy initiatives while providing corporate participants with flexibility through a combination of long-term and short-term PPAs.

Collectively, these two organisations exemplify how collaboration can serve to expedite South Africa’s transition to clean energy.

Multi-Buyer Blueprint

Skeen expresses that Eskom’s virtual wheeling framework and SOLA’s Springbok multi- buyer solar facility represent blueprints for future renewable procurement, demonstrating that corporates need not be constrained by geography or single offtake structures, and that renewables can be delivered reliably, flexibly, and at scale.

“Springbok Solar Power Project breaks new ground by introducing a model that combines long-term anchor contracts with buyers, including multinational technology company Amazon and mining major Sibanye-Stillwater,” states Skeen.

He adds that the collaboration with Amazon has been “instrumental” in enabling South Africa’s first wheeling project in 2020, and subsequently Springbok.

“As part of our commitment to achieving net-zero carbon by 2040, Amazon Web Services (AWS) is proud to support innovative renewable-energy projects like Springbok Solar Power Project,” says AWS South Africa country manager James Hickman.

Hickman adds the collaboration not only advances AWS’s sustainability goals but also helps develop new models for corporate renewable-energy procurement in Africa.

“The multi-buyer approach demonstrates how cloud and sustainability can work together to create scalable solutions for businesses of all sizes,” Hickman avers.

“Achieving commercial operation of the Springbok Solar Power Project is another milestone in our journey to energy independence and decarbonisation,” adds Sibanye-Stillwater’s CEO Richard Stewart.

He says this is the second project to achieve commercial operation in Sibanye-Stillwater’s 407 MW portfolio of contracted renewable- energy projects, contributing to its goal of achieving carbon neutrality by 2040.

Stewart thanks SOLA Group for effectively managing the construction and start-up, securing Sibanye-Stillwater’s offtake.

Included in the PPA are shorter-term, flexible agreements with a further six companies.

These additional buyers include diversified miner Rio Tinto, property developer Redefine Properties, integrated financial service provider Old Mutual, chemicals and petrochemicals company Sasol, construction materials company Afrimat, and meat product developer Barbeque Rib Manufacturers, or BRM Brands, among others.

“Together they represent a cross-section of South Africa’s most prominent companies,” Skeen says.

Project Details

At full capacity, the SOLA Group’s Springbok Solar Power Project is expected to produce about 430 GWh/y – enough to supply power to 150 000 homes; it will also offset about 399 000 t of CO2 a year – comparable to planting 6.5-million trees.

Further, over R375-million has been invested in nearby communities, and all of the project’s workforce was sourced locally, with 49% being youths.

“SOLA’s community investment initiatives aim to create lasting positive impacts,” says Skeen.

“Springbok Solar Power Project cements our role as South Africa’s pioneering, wheeling independent power producer,” adds Skeen, concluding that the company enables increased client optionality, depending on their business outlook.