Corporate Renewable Ene Corporate Renewable Ene Market In Africa - Potentia Market In Africa - Potentia and Challenges and Challenges

Around the world, renewable energy generators have been ente power purchase agreements with corporates (PPAs) These a term contracts that allow corporates to obtain clean electricity long term This has seen a decrease in renewable energy cos risk premiums, and increased competition in the eq manufacturing industry (wind turbines, solar panels, etc.). According to Bird & Bird's report, the global corporate renewable PPA volumes climbed 23.7 GW in 2020. The trend is expected not to slow down. While recently the African region saw increased uptake of corporate renewable power, sub-Saharan African countries may face particular regulatory challenges. These challenges include strict license requirements and a dearth of net-metering options These barriers need to be removed if Africa is to become a leader in corporate renewable energy PPA

A corporate renewable PPA (Corporate Renewable Power Purchase Agreement) is an agreement between a renewable energy producer and a corporate customer It allows consumers to buy renewable energy directly from the developer, at a set pricing scheme, and not from the power utility. Renewable power is derived from many renewable and nonrenewable sources The contract can be for as little as a few years up to more than twenty years eleven hydroelectric projects have been or are being developed Nareva runs the Akhenfir and Foum El Oud wind farms with a combined capacity of 200 MW ACWA Power has developed 120 MW Khalladi, which began operation in December 2017 This wind farm supplies 80% of its output under long-term PPAs to cement manufacturers Holcim Morocco Asment and Cimat. The remainder is sold under shortterm agreements to other commercial customers Voltalia is one example of a hydro project It has been granted permits to build two hydropower stations of 9 8 MW each in Morocco's MiddleAtlas area. The electricity produced will be sold under longterm, private PPAs that are currently being negotiated with corporate clients Platinum Power has five projects in development that have been authorized by Law 13-09.

Barriers to the adaptation of corporate PPA include particular difficulties in grid access and IPP market accessibility. In these cases, procedures for receiving grid connections are seen as opaque and lack predictability Dec 2021 saw the adoption of the grid code, but it did not deliver transparency in grid connection procedures or rules.

South Africa

Representation of Different Corporate PPA

Recently, two African countries namely Morocco and South Africa played a major role in adopting corporate renewable PPA for their country’s commercial and industrial power consumers.

What is Corporate PPA? Morocco

Morocco's 2009 National Renewable Energy Strategy was reaffirmed by Law 13-09, which allows operators of renewable energy production plants to enter into direct PPAs with end-users in order to sell the electricity they produce. For HV and MV clients, this is officially possible. itted to its 2030 renewable-energy target An d renewable energy capacity places it on track der this Law, at least seven wind farms and

On September 2, 2022, the Minister of Mineral Resources and Energy released draft amendments to Schedule 2 of the Electricity Regulation (Act 4 of 2006, ERA) The principal change proposed is to raise the licensing threshold to 100MW This exemption exempts generation facilities, including those with energy storage, of unrestricted power with a point for connection on the distribution or transmission power system, and thus, the need to obtain licenses After the removal of licensing threshold, SOLA Group and African Rainbow Energy reached a financial close on 200MW solar PV projects for Tronox Mineral Sands, making these the largest corporate renewable energy Power Purchase Agreements in Africa The projects will fulfill obligations under a bilateral electricity sale agreement between Tronox mineral Sands and SOLA Group Through wheeling arrangements made with Eskom, these renewable energy facilities are expected to supply electricity to five Tronox facilities located in the Western Cape or KwaZulu Natal for their own purposes Tronox's operations require a high level of energy and will reduce global carbon emissions by 13%

This project has been hailed as a breakthrough in the private energy market. It also opened the door to more similar projects. As the government finalizes plans to create a trading marketplace on the national grid, the options for private buyers in developing projects will increase.