South Africa’s electricity trader Discovery Green has concluded its first power purchase agreement (PPA) as an offtaker in Phase 2 of independent power producer (IPP) Red Rocket’s Overberg Wind Farm.

The deal will unlock 150 MW of clean energy, which will be wheeled to Discovery Green’s clients, including Impala Platinum Holdings (Implats), Fortress Real Estate Investments, Balwin Properties, KP Lime, and The Capital Hotels and Apartments.

Red Rocket’s Phase 2 of the Overberg Wind Farm, situated near Swellendam in the Western Cape, will deliver over 489 GWh of renewable electricity each year to Discovery Green’s platform, according to the electricity trader’s press statement of May 30. The project is expected to commence full commercial operation in 2027.

According to Andre Nepgen, head of Discovery Green, delivering a project of this scale and complexity required the company to chart new ground. “Concluding our first major renewable energy project sets a strong precedent for what’s possible, enabling a new renewable energy model that meets the needs of a diverse range of businesses,” he said.

“It shows that clean, scalable, and commercially viable energy is possible – now. With this financial close secured, we’re well-positioned to support more businesses in switching to price-certain renewable energy,” Nepgen added.

Together, Phases 1 and 2 of the Overberg Wind Farm represent an investment of over ZAR13bn ($725.4mn), financed by Absa Bank, Standard Bank, and the Development Bank of Southern Africa (DBSA).

Red Rocket CEO Matteo Brambilla said the Overberg Wind Farm represented the future of private-sector-driven renewable energy in South Africa, describing the agreement as a “landmark multi-offtaker deal.”

Cape Town-based Red Rocket includes the Overberg Wind Farm as one element of its wider range of wind, solar, and hydropower initiatives. The company is also responsible for developing Virginia Solar Park, the largest grid-connected solar facility on the African continent.

According to Brambilla, Red Rocket’s energy portfolio now boasts almost 4 GW of projects in operation, under construction, awarded preferred bidder status, moving towards financial close, and commencing construction.

“We’ve achieved phenomenal success in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) with two recent achievements, including Bid Window Five projects, Brandvalley and Rietkloof wind farms, reaching commercial operations earlier this year,” Brambilla said.

“Overberg Wind Farm also joins our growing portfolio in the commercial and industrial market, with Witberg Wind Farm, in partnership with Sibanye-Stillwater, currently under construction,” he added.

Discovery Green, launched in 2023, has formed long-term partnerships with major companies and helped more businesses access renewable energy. Through its Ampli Energy, a joint effort with Sasol, it supports businesses of all sizes, including small enterprises and NGOs, that were previously unable to use energy wheeling.

“With the Overberg Wind Farm project, Discovery Green is scaling its impact across sectors, from heavy energy users to fast-moving consumer brands,” the statement said.