Autocast signs renewable power supply deal with electricity trader in South Africa

  • Autocast South Africa – a leading supplier of cast and machined components to the automotive, mining and engineering industries has signed a power purchase agreement (PPA) for renewable power supply  with electricity trading company Etana Energy.

“This was born out of the Nelson Mandela Bay Business Chamber’s (NMBBC) Renewable Energy Cluster which brought together some of the highest energy users in the Bay around two years ago to find a common solution for procuring clean power. After going through a rigorous selection process, Etana Energy was selected as the preferred renewable electricity supplier,” says Denise van Huyssteen, CEO of NMBBC. “The Chamber has adopted the cluster approach to enable the Bay’s businesses to combine resources to develop and implement solutions for a range of issues – from energy through to water and sanitation, among other aspects that affect the business environment.”

Energy trading addresses three key electricity challenges South Africa faces. First, the country needs a significant amount of additional generation capacity. Secondly, to provide this additional electricity, independent power producers (IPPs) need secure, long-term “offtake agreements” (sales agreements) to get financing for their projects. Thirdly, businesses can offer products to their customers with vastly reduced carbon profiles.

Power reaches customers like Autocast South Africa via “wheeling”, a process where electricity traded between private parties is transported across the Eskom grid from where it is generated to end-users, even across long distances.

“Recognising SA’s challenges with electricity generation and the decarbonisation imperative, Autocast has partnered with Etana to access clean, cost-effective wind-powered energy. This aligns with our sustainability goals, reduces our environmental footprint, and ensures predictable energy costs providing long-term stability,” said Autocast Executive Director, David Mertens.

Author: Bryan Groenendaal

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