South African energy trader Etana agrees 20-year offtake for Acciona Energía wind farms

South African energy trader Etana Energy has agreed to purchase all the electricity generated for the first 20 years of operation from two new wind farms being developed by Acciona Energía (BME:ANE), under a private corporate offtake and wheeling arrangement, according to a company statement.

The projects comprise the Zen (100MW) and Bergrivier (94MW) wind farms, located between Gouda and Saron in the Western Cape. Together, they will have a combined export capacity of 190MW and are expected to generate around 580GWh per year, based on projected wind resource and availability.

The renewable power will be supplied to Etana’s portfolio of corporate customers, including Growthpoint Properties (JSE:GRT), the V&A Waterfront, Tharisa (JSE:THA; LSE:THS), Petra Diamonds (LSE:PDL) and Autocast, reflecting continued growth in demand for long-term clean energy supply from South Africa’s commercial and industrial users.

The wind farms will be owned by Acciona Energía (51%) and a joint venture between H1 Capital and Chariot Limited (AIM:CHAR) (49%). Etana said in a media release that financial close was achieved on December 12, clearing the way for construction.

Construction is expected to begin in the coming weeks, with commissioning scheduled for mid-2027. Electricity from the projects will be supplied under a private corporate offtake and wheeling model rather than through South Africa’s public renewable procurement programmes.

Etana estimates that power generated by the two wind farms will displace about 600,000 tonnes of carbon dioxide per year, based on assumed grid emissions factors. This is equivalent, the company said, to removing more than 225,000 internal combustion engine vehicles from the road.

“These wind projects are another key piece of the puzzle for Etana to provide businesses with renewable energy to cover a high percentage of their total electricity needs,” Etana chief executive Evan Rice said.

Rice added that the agreement brings Etana’s generation portfolio to about 300MW of wind and solar capacity currently under construction, alongside the operational Boston Hydro facility, with all output fully contracted to customers.

“We are seeing strong and growing interest from South African businesses in cost-competitive clean power and the contractual flexibility of Etana’s offerings,” Rice said. “A significant portion of our next phase of wind and solar projects is already committed to our growing portfolio of customers, and our focus is now on taking these projects into construction in the coming months.”

The deal underscores the continued acceleration of privately contracted renewable generation in South Africa, as companies seek to manage energy costs, reduce emissions and mitigate ongoing grid constraints through long-term power purchase agreements.