- 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 ย with electricity trading company Etana Energy.
โThis was born out of the Nelson Mandela Bay Business Chamberโs (NMBBC) Renewable Energy Cluster which brought together some of the highest energy users in the Bay aroundย two years ago to find a common solution for procuring clean power. After going through a rigorous selection process,ย Etana Energy was selected as the preferred renewable electricity supplier,โ says Denise van Huyssteen, CEO of NMBBC. โThe Chamber has adopted the cluster approach to enable the Bayโs 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.โ
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 โofftake agreementsโ (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 โwheelingโ, 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 SAโs challenges with electricity generation and theย decarbonisation imperative, Autocast has partnered with Etana to accessย clean, cost-effective wind-powered energy. This aligns with ourย sustainability goals, reduces our environmental footprint, and ensuresย predictable energy costsย providing long-term stability,” saidย Autocast Executive Director, David Mertens.
Author: Bryan Groenendaal