Discovery Green signs 20-year power purchase deal with Red Rocket for 300MW solar farm

Discovery Green, the renewable energy business of Discovery Limited, said on Tuesday that it has signed a 20-year power purchase agreement (PPA) with independent power producer Red Rocket for Tournee Solar Park, a 300 MW solar farm to be built in Standerton, Mpumalanga.

Dan Ginsberg, the head of Actuarial and R&D at Discovery Green, said, “Tournee is an exciting benchmark in renewable energy projects. In terms of size, it is equivalent to 800 rugby fields and is designed for maximum efficiency and long-term reliability, delivering clean power at a scale that few projects have achieved.”

Financed through a club deal arranged with Absa Bank, Standard Bank and the Development Bank of Southern Africa, Tournee is scheduled to begin operating in 2027.

Andre Nepgen, the head of Discovery Green, said: “Tournee is one of the country’s largest renewable energy projects, secured at a time when grid supply is thin. By acting now, we’ve locked in long-term price-certain energy for our growing portfolio of clients – supporting lower electricity costs and competitiveness in a low-carbon economy.

“Affordable clean energy is the foundation for business productivity, expansion and job creation, and Tournee allows us to deliver exactly that and support the country’s growth.”

Tournee is Discovery Green’s second renewable energy project with Red Rocket, following financial close on phase two of the 150MW Overberg Wind Farm earlier this year.

Matteo Brambilla, Red Rocket CEO, said, “Our projects with Discovery Green represent an investment of around R10 billion and will generate energy on a scale comparable to powering more than 369 000 homes. The Tournee agreement deepens our partnership and reflects the strength of collaboration in bringing impactful energy solutions to life.”

Tournee will comprise approximately 463 000 bifacial solar modules and connect to the national grid via a 132kV overhead powerline. Over its 20-year lifespan, the solar farm is expected to generate approximately 720 million kWh annually and avoid over 709 000 tonnes of carbon dioxide equivalent emissions (CO2e) per year.

Through its agreement with Red Rocket, Discovery Green will deliver renewable energy to leading mining, manufacturing, property and hospitality businesses, including Impala Platinum, Southern Sun, Fortress REIT, Balwin Properties, KP Lime, and The Capital Hotels and Apartments. From 2027, these clients will receive power from Tournee and Overberg, collectively cutting an estimated 1.15 million tonnes of CO2e emissions annually.

Nepgen said, “Our partnership with Red Rocket combines their expertise in developing and delivering renewable energy projects with our focus on delivering clean energy to businesses of all sizes. Together, we’re building a portfolio that will give South African businesses the energy certainty they need to grow, while reducing carbon emissions at scale.”

Matteo Brambilla, Red Rocket CEO, said, “Tournee Solar Park marks another key step in our mission to deliver utility-scale energy in South Africa. This milestone not only reinforces our long-term commitment to accelerating the energy transition, but also demonstrates the viability of solar power in supporting industrial growth. As our third major project in the private power market, it further highlights Red Rocket’s role in driving South Africa’s clean energy future.”

BUSINESS REPORT