Mark Levy-led Blu Label unit begins $22 million solar project under 20-year South African power deal

A unit of Mark Levy-led Blu Label Unlimited has begun constructing a R360 million ($21.7 million) solar plant under a 20-year electricity-supply agreement with a South African municipality.

• BluEnergy has begun constructing a $22 million solar plant in Ekurhuleni.
• The project will supply electricity under a 20-year municipal agreement.
• Private investors will fund the development without upfront municipal capital.
• The plant is expected to generate enough electricity for about 6,000 homes annually.

BluEnergy and development partner IBS Crafts are building the 25.6-megawatt-peak facility at the Springs Fresh Produce Market in Ekurhuleni.

The project will use the market’s roof and surrounding unused municipal land to generate electricity for the city’s power network.

BluEnergy, an independent power producer, will finance the development without an upfront capital contribution from Ekurhuleni. The municipality will instead buy electricity from the facility over the 20-year contract.

Engineering News reported⁠ that construction began on 22 October under Ekurhuleni’s Independent Power Producer Programme.

The plant is expected to generate about 40 gigawatt-hours of electricity annually, comparable to the yearly consumption of approximately 6,000 homes.

Blu Label expands beyond electricity payments

Blu Label’s existing electricity business is built around Cigicell, which supplies prepaid electricity vending and revenue-management systems to more than 95 municipalities across South Africa.

BluEnergy extends the group’s operations into electricity generation and trading, giving it access to revenue from long-term municipal power contracts.

Mark Levy, Blu Label’s co-chief executive, said combining generation, trading, payments and revenue collection would give the group a stronger base for municipal energy partnerships.

For Ekurhuleni, the arrangement provides additional generating capacity without requiring the city to fund construction. It also reduces the municipality’s dependence on a single electricity supplier.

The project is expected to create more than 100 jobs during construction, with additional operations and maintenance positions when the plant begins generating power.

It will connect to the Springs bulk substation and is expected to prevent approximately 36,000 tonnes of carbon emissions annually.

The project follows the award of a multi-year electricity-trading licence to BluEnergy Trading by South Africa’s energy regulator.