Sappi Southern Africa, Enpower finalize 175 GWh/y renewable energy partnership

SOUTH AFRICA – Sappi Southern Africa and Enpower Trading have reached Financial Close on a five-year, 175 GWh per year renewable energy Power Purchase Agreement (PPA).

This milestone marks a major step in Sappi’s efforts to reduce its carbon footprint while supporting South Africa’s transition to renewable energy.

Achieving Financial Close is a rare accomplishment among private power projects in the country.

It underscores the credibility of the five-year PPA and reflects the strong confidence financial institutions have in Enpower Trading and Sappi’s clean energy strategy.

As part of the agreement, Enpower Trading played a crucial role in securing the Financial Close for SolarAfrica Energy’s SunCentral 1 PV plant, a R1.8 billion (US$97.58m) utility-scale solar project.

This achievement highlights Enpower Trading’s 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, we are proud to lead the way with South Africa’s largest private PPA to achieve Financial Close. This milestone proves the viability of shorter-tenure agreements in accelerating renewable energy development.”

Sappi Southern Africa CEO Graeme Wild echoed this sentiment, emphasizing the company’s role in driving sustainable business practices, “Reaching Financial Close is a major milestone for both Sappi and South Africa. This agreement reinforces our commitment to clean energy, reduces our reliance on fossil fuels, and aligns with Sustainable Development Goal 7 (SDG7): Clean Energy.

“We are proud to be at the forefront of this transformation, driving innovation and partnerships that ensure a more sustainable future.”

Pioneering a new PPA model

The five-year PPA model represents a significant shift from traditional long-term agreements. Offering tenure flexibility opens new opportunities for companies of all sizes to purchase wheeled energy.

Enpower Trading’s leadership in this space demonstrates how short-tenure PPAs can unlock investment in renewable energy.

“This project showcases the power of innovation in energy trading,” Beatty added. “Our five-year PPA model brings greater liquidity to the market, making clean energy more accessible to developers and businesses. We believe this approach is a game-changer for the South African market.”

Under the agreement, Sappi SA and Sappi Limited will reduce their Scope 1 and 2 emissions by 6% and 4%, respectively.

This aligns with Sappi’s Science-Based Target (SBTi) objectives and its broader goal of achieving net-zero emissions.

The SunCentral PV project, operated by SolarAfrica Energy, is a key component of South Africa’s renewable energy transition.

As one of the country’s largest solar farms, it demonstrates the potential for private-sector-driven projects to scale clean energy solutions. 

“Private-sector innovation is critical to solving South Africa’s energy challenges,” Beatty concluded.

“Through this partnership, we are not only delivering cleaner, more affordable power but also supporting economic growth, decarbonization, and energy security.”

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