Sappi Starts Receiving Renewable Power Under Five-Year Deal
Sappi has begun taking renewable electricity from Enpower Trading under a five-year power purchase agreement, with deliveries reaching three Eskom-connected sites.
Updated on Nov. 4, 2026 in Energy
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Sappi has started receiving renewable electricity through a five-year power purchase agreement with Enpower Trading, which reached financial close and is among the first and largest corporate renewable energy PPAs of its kind in South Africa. Deliveries have begun to three Eskom-connected Sappi sites.
Why it matters
The agreement gives Sappi a route to diversify its electricity supply and reduce energy-related emissions while seeking more certainty over future power costs. It also signals that third-party renewable supply is becoming part of routine corporate energy sourcing in South Africa.
Enpower Trading is currently supplying up to 16 GWh of renewable electricity a month, including output from SolarAfrica Energy's SunCentral solar project in the Northern Cape. The source does not disclose the agreement's pricing, and the expected timing of a fourth facility joining the programme remains unconfirmed.
The players
Sappi
Sappi is a global pulp and paper manufacturer whose South African operations rely on large volumes of electricity across its mills.
Enpower Trading
Enpower Trading is a South African electricity trading company that supplies renewable power from its generation portfolio to corporate buyers.
Eskom
Eskom is South Africa's state-owned electricity utility, which supplies the grid connections serving the Sappi sites receiving deliveries.
The details
Enpower Trading supplies renewable electricity from its generation portfolio, delivered alongside Sappi's own generation and wheeling arrangements. The partnership took several years to reach delivery, as both companies navigated regulatory changes and adjustments to Eskom's Retail Tariff Plan, including time-of-use tariffs.
Timeline
A five-year term governs the Sappi-Enpower power purchase agreement.
The partnership took several years to reach the delivery stage.
Deliveries to three Eskom-connected Sappi sites began on 4 November 2026.
Market Landscape
The agreement was negotiated while both companies adjusted to changes in Eskom's Retail Tariff Plan, including time-of-use tariffs. It shows third-party renewable supply taking hold within South Africa's existing grid and tariff structure.
For South African businesses weighing their own electricity costs, the agreement shows that corporate buyers can source renewable power through multi-year contracts. The arrangement also depends on the regulatory and tariff framework, so changes to time-of-use pricing can affect how such contracts are structured.
The takeaway
Corporate buyers in South Africa can secure multi-year renewable supply, but tariff rules such as time-of-use pricing shape how those deals work in practice. Companies planning similar agreements should account for regulatory changes from the outset.
What happens next
A fourth Sappi facility, connected to a municipal electricity network, is expected to join the programme, and SolarAfrica Energy's SunCentral project is ultimately expected to reach 1GW of generation capacity.
Further reading
Explore more on Energy developments across South Africa.
Source note: This article includes information reported by Moneyweb.
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