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Sasol sells some of its clean energy to Discovery Green to wheel to corporates in ‘revolutionary’ model

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  • Discovery Green, a Discovery Limited business, in partnership with global energy company Sasol, has  launch Ampli Energy – a market-first month-to-month renewable energy product that gives South African businesses of all sizes immediate access to green energy at scale through the national grid.
  • Sasol is one of the world’s biggest corporate air polluters and one questions why the company has made a decision to sell its clean electricity which should be used to offset carbon emissions from their coal and gas power plants. Read more

With monthly savings, no upfront costs, and flexible, penalty-free cancellation, Ampli Energy introduces a no-fee, no-risk, no-hassle solution for businesses looking to cut emissions and electricity costs.

“Renewable energy has grown rapidly in recent years, driven by businesses adopting on-site electricity generation through solar technology,” said Andre Nepgen, Head of Discovery Green. “While this has been beneficial, many businesses lack the capital and land space for on-site installations to meet most of their electricity consumption needs.

Related news: Sasol delivers poor results with question marks and over its failure to transition its energy production to clean resources in good time

Wheeling – where electricity is generated at wind and solar farms in resource-rich parts of the country and delivered to businesses through the national grid – allows businesses to access renewable energy through their existing electricity connection without investing in additional infrastructure. However, securing a long-term PPA and wheeling energy has been limited to large-scale energy users, like mines, with the capital, scale and long-term energy outlook needed to negotiate complex power purchase agreements.

Ampli Energy is changing that. Through simple, month-to-month membership, any business anywhere in the country can now replace the majority of its electricity with renewable energy already flowing through the national grid, reducing carbon emissions without upfront capital requirements, installations or long-term contracts. In fact, Ampli Energy pays businesses to run on renewable energy, with monthly cashback paid directly into their bank accounts, and they can cancel at any time with just 30 days’ notice without penalty.

With over seven decades of expertise in energy production, Sasol has consistently driven innovation in energy generation and brings this experience to the partnership.

Last year, the ACED-IDEAS-Reatile Msenge Emoyeni Wind Farm (Msenge) reached commercial operation. This is the first large-scale renewable energy project from which Sasol has secured long-term offtake. Located in Bedford, Eastern Cape, the 69MW wind farm is one of the fastest constructed renewable energy projects by the IPP consortium consisting of African Clean Energy Developments (ACED), which is African Infrastructure Investment Managers’ (AIIM) development and delivery platform, the AIIM-managed IDEAS Fund and the Reatile Group. It is already supplying electrons wheeled through the national grid to Sasolburg Operations in the Free State.

Together, Discovery Green and Sasol have committed over 450MWh per annum of renewable energy generation capacity – representing a R1.8 billion to R2.5 billion investment – to Ampli Energy, which will be delivered to businesses in tranches.

“The launch of Ampli marks a strategic shift where Sasol moves beyond being a major energy consumer to an aggregator and trader of renewable electrons. South Africa is blessed with some of the world’s finest wind and solar resources. This will allow us to increase our renewable energy ambitions by enabling the sale of excess energy to a broad customer base. This is a win for the country because it not only accelerates the energy transition but creates access for smaller customers to green electrons,” said Sarushen Pillay, Executive Vice President of Sasol’s Business Building, Strategy and Technology.

“As Sasol, we bring a massive anchor demand for green electrons in our existing operations, and we have deep experience as the largest private generator and user of electricity in South Africa. Through our fleet of existing gas-to-power and coal-based assets, we have been buying and selling electricity for decades,” explained Pillay.

The first tranche of renewable energy capacity is fully subscribed, with a growing number of businesses, including Nando’s, NetFlorist, Hatfield Motors, Sealand Gear, selected Sasol Garages, and several NGOs, such as Reach for a Dream and Nelson Mandela’s Children’s Hospital, signing up. These businesses are drawn by the simplicity of the model and its environmental impact.

“Ampli Energy is revolutionary. It represents a sea change in green energy and illustrates what can be achieved when two of South Africa’s marquee brands come together. We must ensure we unshackle the potential of the economy by addressing energy security, democratising access to green electrons and achieving environmental sustainability. Ampli can help us maintain our responsibility to the South African economy and consumers to provide energy that is clean, available, and affordable,” said Minister of Electricity, Kgosientsho Ramokgopa.

Author: Bryan Groenendaal

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