Renewable Energy Certificates
We offer Renewable Energy Certificates (RECs) providing a transparent, reliable way for businesses to credibly report low-carbon electricity consumption.
A Simple Solution for Clean Electricity Verification
As businesses increasingly seek ways to meet their sustainability goals, Renewable Energy Certificates (RECs) offer a straightforward and reliable solution to track and verify the use of clean electricity. At Etana, we provide RECs to our customers as part of our clean energy offering.
A REC is an official document proving that one megawatt-hour (MWh) of electricity was generated from a renewable energy source, like a wind or solar plant. These certificates are issued by and recorded in a digital registry managed by an independent authority, which ensures their integrity.
RECs are allocated to Etana by our renewable electricity suppliers, and we then pass them on to our customers based on the amount of renewable electricity they consume in a year. This allows businesses to credibly report on their low-carbon electricity consumption and enhance their sustainability efforts. As owners of these certificates, customers have two primary options:
Retiring RECs: Customers can "retire" their RECs, meaning they link them to their own electricity consumption in that year. This way, a company can credibly claim that a certain percentage of its electricity came from renewable sources.
Trading RECs: Alternatively, customers can sell their RECs. For example, if a company only needs 50% of its electricity to be from renewables, but it has additional RECs, it can sell those on the market to other companies looking to meet their own carbon reduction targets.
By choosing Etana, businesses receive not only competitively priced electricity from renewable sources, but also the means to prove where their electricity has come from. RECs provide a powerful tool for traceable, clean electricity usage, and enable businesses to meet their specific decarbonisation targets and enhance their sustainability profiles.
Investors Look to Finance $500 Million in South African Renewable Power
GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII), the UK’s development finance institution and impact investor, expect to unlock $500 million of new renewable power development through a groundbreaking deal with Etana Energy, the South African energy trading company.
Etana Energy signs a landmark R1.8 billion Guarantee Facility deal with GuarantCo and British International Investment to unlock new renewable energy capacity for South Africa
Etana Energy, the South African energy trading company, aims to unlock R9 billion of new renewable energy investment through a groundbreaking deal with GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII), the UK’s development finance institution and impact investor.
Etana Energy, the South African energy trading company aims to unlock R9 billion of new renewable energy investment through a groundbreaking deal with GuarantCo, part of the Private Infrastructure Development Group (PIDG), and British International Investment (BII), the UK’s development finance institution and impact investor.
Perdekraal East Wind Farm. One of H1’s Round 4 Assets, under Mainstream Renewable Power. Credit: Courtesy of Perdekraal East Wind Farm https://perdekraaleastwind.co.za/
GuarantCo and BII will provide $100 million ($50 million each) of default guarantee finance for Etana in South Africa’s largest “energy wheeling framework” transaction.
This innovative type of deal is designed to unlock new renewable energy capacity by providing independent power producers (IPPs) with the revenue certainty they need to break ground on new renewable energy projects.
It is expected that the US$100 million in guarantee financing will unlock an estimated R9 billion of new renewable energy projects – providing a major boost to South Africa’s green energy transition – and underlining the UK’s support for the country’s Just Energy Transition Partnership (JETP). Displacing fossil fuel generation with electricity generated from renewable sources will avoid 1.2 million tonnes of CO2-equivalent emissions annually and create a significant number of new jobs.
This transaction qualifies under the IPG (International Partner Group countries) as part of their JETP commitment to South Africa. JETP is funded by several governments, including the UK, and serves to accelerate South Africa’s environmental transition in the energy sector. This is GuarantCo’s first contribution to this programme.
The guarantee facility will enable around 500MW to be added to the grid by several renewable energy (wind and solar) IPPs over the next few years.
Recent regulatory changes in South Africa have opened up the opportunity for private power producers to sell electricity to business customers , and companies like Etana are looking to accelerate this opportunity, expanding the addressable market by buying renewable energy from private generators and then selling that output to a portfolio of commercial customers by “wheeling” the electricity across the existing transmission network.
Etana’s founding shareholders are H1 Holdings, a black-owned investment company with which BII has a longstanding relationship, and Chariot Limited, a British group which is focused on developing transitional energy projects in Africa, listed on the London Stock Exchange (AIM: CHAR).
Iain Macaulay, Director and Head of Project Finance, Africa for BII, said: “BII is demonstrating global leadership in unlocking private capital for climate finance. The Etana deal is a truly innovative form of financing that I hope will serve as a template for unlocking South Africa’s green energy potential.”
Evan Rice, CEO at Etana Energy, said: “We need to pursue all avenues that can unlock the capital required to build new electricity generation capacity in South Africa. Local businesses need low carbon, cost-competitive electricity to remain relevant and viable. Etana’s aggregation model offers a way to meet these needs whilst enabling new renewable energy capacity to be built. This guarantee facility is a critical piece of the puzzle for a relatively new company like Etana to be a bankable offtaker for IPPs. We are incredibly grateful to GuarantCo and BII for their vision, support and commitment to catalysing this opportunity with us.’’
Surabhi Mathur Visser, Deputy CEO at GuarantCo, said: “We are proud to support the renewables sector in South Africa by entering into this guarantee framework agreement with Etana Energy. From an investment point of view, it provides strong replication opportunities by proving to the market that a guarantee framework can work at scale. GuarantCo continues to seek out potential market transformation transactions like this in lower-income communities to deliver against the UN’s Sustainable Development Goals in alignment with the PIDG 2030 strategy.”
Key contacts
GuarantCo PIDG Alison Hicks Cecilie Sorhus Communications Consultant Head of Communications +44 (0)7385 551 967 +44 (0)7917 302 724 alison.hicks@guarantco.com cecile.sorhus@pidg.org
BII Andrew Murray-Watson Head of Media +44 7515 695232 amurray-watson@bii.co.uk
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.
About GuarantCo
GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 6.8 billion of total investment and USD 5.7 billion of private sector investment, giving 44.7 million people access to infrastructure and creating around 243,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development
To find out more visit: www.guarantco.com
About Etana Energy
Etana Energy is a majority black-owned licenced electricity trader that supplies electricity generated by renewable energy projects to businesses in South Africa, using the national electricity grid. Etana’s customers benefit from certified low-carbon electricity at tariffs competitive with Eskom or municipal supply, forward price certainty, flexible contracting terms and qualifying B-BEEE expenditure. For more info see www.etana.energy
How Etana Ensures Forward Electricity Price Certainty for Our Customers
We offer customers forward price certainty through a tariff linked to the Consumer Price Index (CPI). Businesses operating in South Africa no longer have to contend with fast-rising above-inflation electricity tariffs - Etana’s pricing model allows companies to lock in a large percentage of electricity rates for up to 20 years.
We offer customers forward price certainty through a tariff linked to the Consumer Price Index (CPI). Businesses operating in South Africa no longer have to contend with fast-rising above-inflation electricity tariffs - Etana’s pricing model allows companies to lock in a large percentage of electricity rates for up to 20 years.
In today’s environment, it’s difficult for businesses to know how much they will be paying for electricity in the years ahead. For industries like mining, manufacturing, and steel production, managing electricity expenses and having long-term certainty is essential for financial stability and competitiveness.
Electricity tariffs have increased by well above the inflation rate for the past 15 years. This presents a challenge for businesses who need to plan their budgets and manage long-term costs, especially when their operations require electricity around the clock.
Etana offers a solution designed to meet these challenges. Through our Power Purchase Agreements (PPAs), we provide a single electricity price with long-term certainty. Our tariff adjusts with the Consumer Price Index each year, allowing businesses to lock in inflation-linked pricing over the duration of the PPA, whether that’s 5, 10, 15, or even 20 years.
We deliver electricity from both solar and wind farms, covering up to 70% of your electricity needs with renewable, including peak periods outside of solar generation hours. This way, you can maximise your savings and achieve higher decarbonisation levels.
For businesses prioritising sustainability, financial predictability, and cost savings, Etana is the ideal partner.
Why Solar Alone Isn't Enough: Wind’s Vital Role in the Clean Energy Mix
As businesses face rising electricity costs and decarbonisation pressure, combining solar and wind energy offers a sustainable solution that reduces carbon footprints, saves costs and ensures long-term price certainty.
As businesses face rising electricity costs and decarbonisation pressure, combining solar and wind energy offers a sustainable solution that reduces carbon footprints, saves costs and ensures long-term price certainty.
Electricity prices in South Africa have increased by 31.4% over the past two years, driving businesses to seek cost-effective alternatives (1). At the same time, carbon regulations, like Europe’s Carbon Border Adjustment Mechanism (CBAM) and impending local carbon taxes, are putting pressure on companies to decarbonise or face penalties. As a result, many have turned to solar energy. Solar offers a cost-effective renewable energy source during daylight hours and, in many instances, can be installed on-site.
For businesses with operations restricted to daylight hours, solar might be able to cover a high percentage of your electricity needs, significantly reduce energy costs and lower their carbon footprint.
However, for industries like mining, manufacturing, data centres and others with 24/7 operations, solar alone can’t cover the constant electricity demand. This is where wind energy becomes vital. Wind energy generates at different times throughout the day and night, providing a strong complement to solar energy. With this combination, companies can seamlessly transition to low-carbon electricity and save money.
Wind energy is particularly important for energy intensive industries that are facing increasing pressure to decarbonise from regulators, consumers, and global markets. Especially for exporters facing international carbon regulations, like the Carbon Border Adjustment Mechanism (CBAM) in Europe, access to high levels of renewable energy is no longer just desirable—it’s essential.
By utilising both wind and solar energy, businesses not only reduce their dependence on fossil fuels, but also their electricity costs, whilst contributing to a more sustainable and reliable electricity system in South Africa.
First Come First Serve
The challenge for businesses looking to access wind is that there are few places left where new wind projects can connect to the grid without requiring major grid upgrades, which can take a long time to complete. Businesses that don’t act quickly may be left behind, relying solely on solar in the near to medium term as a clean energy solution.
By securing wind energy now, companies can ensure a more stable, long-term energy supply, positioning themselves to stay competitive and meet both current and future regulatory and consumer demands.
Etana Energy’s tailored renewable energy solutions combine wind and solar, offering businesses the ability to achieve up to 70% renewable energy coverage, reduce carbon footprints, and stay competitive in the global market. Now is the time to act—to secure your share of wind power that can connect to the grid in the near future and before regulatory pressures intensify.
Resources
How Wind and Solar Together Meet Business Demands
As industries like mining and manufacturing face increasing pressure to decarbonise and cut electricity costs, wind power is emerging as a key solution. The ability to harness wind both day and night makes it an ideal complement to solar energy, offering a reliable path to sustainability and price stability for energy-intensive businesses.
This week in Cape Town, energy leaders and innovators gather at Windaba 2024 to discuss how wind energy is shaping the future of South Africa's renewable energy landscape. As industries like mining and manufacturing face increasing pressure to decarbonise and cut electricity costs, wind power is emerging as a key solution. The ability to harness wind both day and night makes it an ideal complement to solar energy, offering a reliable path to sustainability and price stability for energy-intensive businesses.
Wind energy is a key resource for energy intensive South African businesses that are aiming to decarbonise and lower their electricity costs.
The wind blows both day and night making it a natural complement to solar power, which generates in daylight hours.
Over the past decade, wind energy costs globally have dropped dramatically, making it cheaper per kWh than new coal power or current grid tariffs.
Wind has also become accessible through wheeling, which gives businesses access to renewable energy through the national grid.
Businesses can simply purchase clean energy via a power purchase agreement with an electricity trader.
By pairing wind with solar, Etana Energy helps companies cover up to 70% of their electricity needs with renewables.
With us, businesses can cover more of their electricity needs across different times of day and seasons, helping them meet their ambitious sustainability targets.
How Does Electricity Trading Work?
What if there was a way to cover up to 70% of your electricity needs with clean energy; delivering savings from Day 1; and providing long term price certainty; without any upfront costs?
Electricity traders, like Etana Energy, are a game-changer for large South African energy users.
Thanks to our sourcing of wind energy combined with solar, we can help our customers cover up to 70% of their electricity needs with low carbon energy, delivering savings from Day 1 and providing long term price certainty—without any upfront costs and no infrastructure on their site.
So how how does it work? Here is a one-minute explainer
Your business needs electricity to run, which you get through the electricity grid.
Today most of this electricity is generated by coal, at ever increasing cost, but you’d like affordable cleaner energy to stay competitive and reduce your carbon footprint.
What if there was a way to cover up to 70% of your electricity needs with clean energy; delivering savings from Day 1; and providing long term price certainty; without any upfront costs?
That’s where Etana Energy comes in. Etana buys electricity from various renewable energy generators - wind and solar farms and sells that energy to customers, like you, who then get clean electricity via the grid.
There’s no upfront cost, and no infrastructure on site. We sign a power purchase agreement with you, and install a meter. You pay Etana every month for the clean electricity you use, and pay Eskom or your municipality for the remainder of the electricity.
Clean and simple!
South Africa's Renewable Energy Pipeline Doubles in One Year
South Africa has doubled renewable energy capacity under development in one year. This is significant, but the transmission grid will require investment and expansion to enable it. Meanwhile, through wheeling, the country can optimize the use of existing infrastructure and support the accelerated integration of renewable energy into the grid.
Contracted Grid Capacity, 2023 - 2024 / South African Renewable Energy Grid Survey
The 2024 South African Renewable Energy Grid Survey (SAREGS) reveals that industry has opened the throttle for renewable energy development in South Africa and demonstrates that new renewable energy project development pipeline has doubled in one year. However, near-term grid capacity is limited.
The survey, jointly published by Eskom, SAPVIA and SAWEA, gathers near-term renewable energy projections to inform medium-to-long term (+-10 year) grid expansion planning as well as the transmission infrastructure development plan for the National Transmission Company of SA.
New capacity refers to projects connected to the national power system derived from new generation facilities or the expansion of existing ones.
Industry is responding to the current lack of grid capacity in the high renewable energy regions (solar in the Northern Cape and wind energy in the Eastern and Western Cape). There is no capacity left for additional power to be connected to the grid in the western half of South Africa. Medium- to long-term developers are still pursuing high renewable energy areas, for when additional transmission grid infrastructure is built. Short-term projects are shifting to areas that have available grid capacity now.
Mpumalanga and KwaZulu-Natal have the most grid availability, with 6 000MW available each. The North West, northern Free State and Limpopo are the major focus areas for solar, and Mpumalanga and northern KwaZulu-Natal mainly for wind.
At Etana Energy, we enable customers to access clean energy through the grid. Our process is simple, flexible and hassle-free, with no upfront investment from the customers and only an additional meter installed
Etana Energy Expands Renewable Energy Access in South Africa
Etana Energy, a licensed electricity trader, is helping South African businesses decarbonise and expand renewable capacity through energy wheeling. CEO Evan Rice recently shared insights on the "Renewables in Action" podcast. Learn more about Etana's impact on clean energy.
In a first for South Africa, Growthpoint gears up for certified renewable energy rollout to offices
Growthpoint Properties' e-CO2 initiative will revolutionise South Africa's commercial real estate by introducing clean energy to 10 properties in Johannesburg, marking a key milestone in the nation's renewable energy transition.
Tharisa signs PPA with Etana for wheeled renewable energy for Tharisa Mine
The wheeled energy will complement the Tharisa Mine's 40MW solar power plant which is designed to provide 30% of Tharisa Minerals’ energy needs.
London-listed Petra strikes deal to supply renewable energy to its SA diamond mines
To mitigate Eskom's rotational power cuts and curb emissions, Petra Diamonds is now relying on independent renewable energy suppliers for its South African mines.
Etana on track to become SA’s first green power utility
Construction will now start on three wind farms in the Western Cape and a solar plant in the Northern Cape, representing a total investment of about R12bn.
Chariot and H1 take full control of South African power trader Etana
Chariot and the local H1 Holdings have bought out their erstwhile partner Neura Group to take full ownership of South African electricity trading company Etana Energy.