Nersa approves BluEnergy’s entry into SA’s power trading industry

BluEnergy Trading has been granted a multi-year energy trading licence by the National Energy Regulator of South Africa (Nersa), JSE-listed Blu Label Unlimited confirmed on Tuesday.

“The approval positions BluEnergy to play a central role in South Africa’s power sector reform agenda which aims to increase private sector participation, enhance energy security and accelerate the transition to renewable energy,” it said.

Read: Moment of truth for South Africa’s electricity reform

BluEnergy is a subsidiary of the Blu Label Unlimited group.

“This marks a significant regulatory milestone that empowers BluEnergy to deliver innovative renewable energy solutions across the energy value chain,” it said in hailing the move.

This would enable the company “to connect with municipalities, IPPs [Independent Power Producers] and energy users, ensuring a more resilient and cost-effective energy supply for local communities,” it noted.

“BluEnergy’s execution and delivery capability is underpinned by its partnership with Cigicell – the leading provider of prepaid electricity vending and revenue assurance systems embedded in more than 95 municipalities across nine provinces,” Blu Label Unlimited added.

Aaron Suckerman, BluEnergy’s CEO, said the licence was a critical enabler of the group’s strategy.

“We are removing the barriers to entry and providing municipalities with a secure, long-term solution for their energy needs.”

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Blu Label share price

How it works

The company operates through specialised entities spanning project development: asset ownership, operations and maintenance, and energy procurement and trading.

“This robustly integrated approach enables BluEnergy to manage the technical and commercial aspects of energy delivery, grid integration, wheeling frameworks and contractual performance. The model is designed to support localised generation and efficient energy flows, offering end-to-end solutions for municipalities and energy users,” Blu Label Unlimited explained.

“Energy accessibility is a foundational marker of economic growth and social development,” said Mark Levy, co-CEO of Blu Label Unlimited, who is responsible for spearheading the group’s energy initiatives.

“Blu Label’s strong balance sheet and fintech capabilities positions the business to deliver sustainable energy solutions at scale while contributing meaningfully to national energy transition and decarbonisation,” he added.

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With regulatory approval now secured, BluEnergy said it will focus on building out its project pipeline and operationalising its energy trading activities.

* Phenyo Selinda is an intern at Moneyweb. 

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