GROUNDBREAKING PPA BRINGS SOLAR POWER TO GROOTEGELUK
On 4 April, Cennergi signed a Power Purchase Agreement (PPA) with Exxaro for the 68MW Lephalale Solar Project (LSP), which will result in a greener and more sustainable power supply to Grootegeluk mine for the next 25 years.
The Exxaro Solar Power Station, the LSP, is a solar power plant operated by Cennergi and based in Lephalale – a coal mining town in Limpopo.
The agreement ensures that the energy generated through the LSP will be sold to Exxaro, for use at Grootegeluk. This is not the only benefit as the deal will also help reduce Exxaro’s carbon footprint and help reduce the mine’s electricity costs.
Why is the LSP deal so groundbreaking?
It is South Africa’s first and largest behind-the-meter solar PV plant.
It is one of the largest PPAs for commercial and industrial private offtake.
It is one of the few fully RSA developed, owned, and financed renewal energy projects.
Construction of the facility started in May 2023 and the commercial operation date is aimed for October 2024.
What is a Power Purchase Agreement (PPA)?
A PPA is a long-term private public contract between an electricity generator (usually a private sector company) and a client (usually a public sector entity like government). PPAs may last anywhere between five and 20 years, during which time the power purchaser buys energy at a pre-negotiated price.
EXXARO ESG SCORE CLIMBS 15 MOODY POINTS
Exxaro has been awarded a 60/100 overall Environmental, Social, and Governance (ESG) score by Moody’s, up 15 points from both its 2020 and 2021 scores.
Governance led the way with a high score of 72/100 . When it came to its domain performances, Exxaro scored highly in:
These scores are way above the sector averages of 44/100 and 53/100, respectively.
“While we aren’t there yet, our recent results are encouraging, and we are also performing better than the sector average,” said Malusi Buthelezi, Group Manager: Integrated Reporting & ESG performance.
This year Fossil Fuels was added as a “Controversial Activity”, and Exxaro falls within this activity. The research for this category will help identify involvement in business activities that are subject to philosophical or moral beliefs.
EXXARO BOARD HAS WHIRLWIND VISIT TO WIND FARM
On a perfectly windy day in May, the Exxaro Board visited Cennergi’s Tsitsikamma Community Wind Farm (TCWF) in the Eastern Cape. Cennergi’s Gqeberha team welcomed the delegation to the site, where Danie du Plessis, CEO of Cennergi (Pty) Ltd, gave an informative brief of the wind farms and their contribution to the South African economy. The Directors had an
opportunity to view a turbine up close and later took the time to visit a local poultry project established by TCWF in the Wittekleibosch community. Leon Groenewald, MD Energy at Exxaro, described the visit as a “privilege and huge success”.
EXXARO
HONOURED WITH SILVER SPONSOR AWARD AT SAIC
Exxaro believes that public-private partnerships can create positive change in South Africa. That’s why, for the last five years, Exxaro has supported SAIC in its drive to create a more equitable and sustainable nation through investment opportunities that will help transform the economy and create employment opportunities.
Exxaro was also a silver sponsor of this year’s conference.
Three facts about SAIC
SAIC attracts delegates from South Africa and around the world.
In 2022, SAIC raised R367 billion in investment commitments alone.
Since the first investment conference in 2018, South Africa has attracted R1.14 trillion in commitments, translating into investments
across a wide range of economic sectors.
Mzila Mthenjane, Exxaro’s Stakeholder Affairs Executive, attended the pre-SA Investment Conference dinner, hosted by the Presidency of the Republic of South Africa, Cyril Ramaphosa.
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