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Seriti Green is one of the few 100% South African-owned IPPs
The story of Seriti Green, which celebrated two years of achievements on 1 December 2024, started in 2007 when Windlab from Australia decided to set up shop in South Africa.
In 2022, Seriti Resources took the decision to diversify its coal profile and acquire 55% of Windlab’s Africa assets. Another important part of the story is that Seriti Resources is one of the most active participants in Mpumalanga, “both directly and indirectly, through contractors, with approximately 14,000 staff in Mpumalanga.
With this footprint comes a tremendous responsibility to growing and maintaining South Africa’s energy heartland,” explains the company’s CEO, Peter Venn.
In October 2024, the Msenge Emoyeni project, developed by Seriti Green, reached commercial operation. It is South Africa’s first privately-owned wind farm located near Bedford in the Eastern Cape Province, powering Sasol and owned by ACED.
Other projects underway cover three provinces, including building Africa’s largest renewable energy plant 40km outside Secunda and 20km from Seriti Resources’ New Denmark coal mine in Mpumalanga.
The facility will have 750MW of wind, 150MW of solar PV, and 800MWh of battery storage. Further afield, through in-depth discussion with the government, the company is permitted to undertake a hybrid wind (200MW), solar (15MW) and battery storage project in Kenya.
With these permitted projects comes a considerable amount of capital and risk.
“Being the first large-scale renewable energy project in Mpumalanga means that we must first open various supply chains. For example, we’re working with the Richards Bay port authority and constructing public roads to ensure that equipment can enter the country,” clarifies Venn, explaining what it takes to be a ‘first mover’ activator.
Expressing how the electricity market in South Africa has changed in just a few years, Venn advises that “you need to make significant investment decisions without end clarity to ensure that when the market is right, you’re able to capture that.”
While he welcomes South Africans’ investing in rooftop solar to alleviate loadshedding, he notes that solar penetration is challenging when battery storage is not included.
“We’re going to see a large increase in the price of solar energy due to the need to increase battery storage.”
Seriti Green is one of the few 100% South African-owned IPPs, giving it a notable advantage. Having a presence in the Mpumalanga and the first project in the province, which many people have tried and failed, and having the know-how of the mining sector is critical, states Venn.
More than 50% of the jobs required for renewable energy already exist in the mining sector, putting Seriti Green in an advantageous position. It’s simply a function of cross-skilling and upskilling to bring people from the mining sector into the renewable sector. The problem is moving from Secunda to Bedford in the Eastern Cape, which is a big move for mine workers, says Venn.
Now that the company will operate plants in Mpumalanga, “you don’t have to take your children out of school. You can move across from mining to renewables.”
Another competitive advantage is the Group’s wind AI, which details the best wind sites before setting foot on-site. “We are securing and developing a gigawatt large project directly due to this AI.”
Keeping innovation in mind, the company is investigating how to unlock rehabilitated mine land to use for renewables.
Venn believes that while one needs to be nimble, being nimble in this environment of constant change is demanding. “In the coming four years, we will see a market where developers and IPPs such as Seriti Green will be able to build a project and sell directly into the market without backstopping that with the PPA and a bilateral contract.”
Currently, the company has 729 people on site, of which 400 were previously unemployed. These are the numbers that we should be focusing on, states Venn.
“If we continue to get access to the grid, transmissions build out, and private power PPAs are engaged, we can continue to grow this renewable energy construction sector to 2030 and comfortably employ 40,000 people in meaningful jobs.”
These jobs will provide long-term socio-economic opportunities and can revitalise provinces like Mpumalanga. ESI |
