Technology 22 Nov 2024

Standard Bank powers Edila Twaalf’ s growth with hybrid solar financing

Edila Twaalf fights loadshedding disruption with hybrid solar solution, funded by Standard Bank

For over 23 years, Edila Twaalf (Pty) Ltd, trading as Top Products, has been the trusted name in extruded maize and maize flours. The company has served as a trusted partner and supplier of high-quality products to multinationals and local businesses. Their commitment to consistent quality and a customer-centric approach has solidified the company as a brand leader in this specialised market.

The challenge

South African businesses are grappling with the harsh realities of loadshedding and escalating energy tariffs, leading to soaring electricity bills and diesel costs. Edila Twaalf, was significantly impacted these challenges, facing unpredictable operational downtime and mounting expenses due to unplanned utility outages. In response to this nationwide issue, the company, with the full support of its shareholders and management, decided that investing in the installation of an alternative energy solution would help reduce energy-related costs and reliance on diesel and also minimise the company's overall carbon footprint.

The solution

Edila Twaalf recognised the importance of selecting a renewable energy partner with a proven track record in the commercial and industrial market. The company sought a turnkey solution provider capable of managing all aspects of the project, from engineering and procurement to construction, ensuring seamless execution and a single point of contact. Journey 2 Green, with its extensive experience in the industry, was chosen as the EPC (engineering, procurement, and construction) contractor for the project. Standard Bank, a leader in asset financing, was selected to provide the necessary financial support.

Standard Bank's role extended beyond financing. The bank maintained constant communication with the EPC contractor, ensuring construction milestones were met on schedule and aligned with the project plan's invoicing timelines. This proactive approach ensured timely payments, optimised working capital, and maintained project liquidity throughout the construction phase. Standard Bank's financial acumen and commitment to transparency facilitated a smooth and efficient project execution. Regular updates were provided to all stakeholders, from the initial credit application to the finalisation of the instalment sale agreement (ISA), ensuring everyone remained informed and aligned.

The project's success is a testament to the collaborative efforts of all parties involved. Utilising Tier 1 equipment, the project adhered to the highest technical and regulatory standards, with comprehensive warranty provisions in place. The hybrid solution, comprising a 307kWp solar PV system and a 410kWh battery energy storage system, was seamlessly integrated into the company's existing infrastructure at its Cornelia premises in the Free State.

The outcome

Now fully operational, the hybrid solar system is poised to deliver substantial cost savings for Edila Twaalf throughout its lifespan. By significantly reducing reliance on the national grid and mitigating the impact of loadshedding and other unexpected interruptions, the company can now operate with enhanced predictability and efficiency. This newfound reliability translates into a more resilient supply chain, ensuring the timely delivery of high-quality products to customers. Ultimately, by embracing sustainable practices, Edila Twaalf has strengthened its business, enhanced customer satisfaction, and is now contributing to a greener future.