Blue Energy have just entered into a 20-year solar Purchase Power Agreement (PPA) with Penflex.

Sean Stuttaford, chief executive officer of Penflex, states that

“[t]his investment is a large PPA agreement and a long-term commitment for a company of our size. The electricity cost of Penflex is one of the highest line-item expenses and, therefore, the future cost of electricity is critical to the sustainability of the company. The management had to do extensive scenario planning, considering various factors in the future of South African electricity generation capacity, such as the mix in the generation sector and what the future cost of generation could become.

While the factory is in Cape Town, the power and infrastructure is supplied by Eskom, not the City of Cape Town. Our view is that this will remain the case for many years to come. The team was closely watching the possible incorporation of the Eskom infrastructure into the Cape Town distribution, but decided that this was not very likely. The team not only considered the stability of generation supply but also considered the last mile infrastructure supply. The model incorporated assumptions in respect of future Eskom Kwh charge escalations and the likelihood of new generation capacity and its cost. We shared our models with Blue Energy to validate both their and our assumptions through very open deliberations.”

Penflex is a leading South African manufacturer of writing instruments, plastic home ware solutions, components for the window blind industry, and multi-use large bottles for the water industry.

The sustainable impact of a renewable energy solution – which Blue Energy Africa is implementing for Penflex – includes securing the livelihood of 300 families, halving the manufacturer’s Eskom demand and significantly reducing losses caused by wastage. The Hybrid Solar PV and Battery Energy Storage System to be implemented at Penflex’s factory in Killarney Gardens, Cape Town, will be 1.3 MWp in size, capable of generating over 1 900 MWh annually.

Marcel Steinberg, chief executive officer of Blue Energy, says “[w]e are thrilled to partner with Penflex, a company that shares our deep commitment to sustainable practices and environmental stewardship. By integrating renewable energy into their operations, Penflex is not only reducing their carbon footprint, but also setting a strong example for corporate responsibility in South Africa. This partnership is a significant step forward in our mission to power the future with clean, reliable energy.”
The project was funded by Gaia Fund Managers’ Renewables REIT (Real Estate Investment Trust), the first of its kind in Africa listed on The Cape Town Stock Exchange.

Press Release: Blue Energy Africa. 2024. [O]. Available: https://www.linkedin.com/company/blue-energy-africa/posts/