Springs Fresh Produce Market scores R360m BluEnergy solar investment

BluEnergy as part of JSE-listed Blu Label Unlimited has started construction on a R360 million solar project at the Springs Fresh Produce Market in Ekurhuleni, with the independent power producer (IPP) funding the development under a 20-year electricity supply agreement with the municipality.

The 25.6 megawatt-peak (MWp) project, developed with IBS Crafts under the City of Ekurhuleni’s IPP Programme, will use the market’s expansive roof and surrounding unused land to generate electricity for the municipal network.

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BluEnergy CEO Aaron Suckerman says the project demonstrates how municipalities can secure additional electricity supply through private-sector investment.

“The city secures a long-term electricity supply, the private sector invests in the infrastructure, and the community benefits from investment, jobs, and a more diverse energy mix,” adds Suckerman.

BluEnergy’s project is expected to generate about 40 gigawatt-hours of electricity annually, equivalent to the annual consumption of approximately 6 000 households. It is also expected to avoid 36 000 tonnes of carbon dioxide emissions a year.

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The capital investment will be funded by the IPP, meaning the city will not need to make an upfront capital contribution. Instead, it will purchase electricity generated by the plant over the 20-year agreement.

Construction is expected to create more than 100 job opportunities, while permanent operations and maintenance positions will support the plant once it becomes operational. The facility will connect to the Springs Bulk Substation.

Blu Label co-CEO Mark Levy says BluEnergy extends the group’s existing municipal services business into electricity supply, bringing together generation, energy trading, payments, and revenue assurance.

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The group’s Cigicell prepaid electricity vending and revenue assurance systems operate in more than 95 municipalities across all nine provinces.

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The project follows the National Energy Regulator of South Africa’s granting of a multi-year energy trading licence to BluEnergy Trading earlier this year.

For Ekurhuleni, the development is intended to diversify electricity procurement and reduce reliance on a single supply source.

Suckerman says the model could also help address municipalities’ need for additional electricity and private investors’ demand for commercially viable projects.

Phenyo Selinda is a Moneyweb intern. *

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