• 150 MW wind farm to deliver clean energy to clients via wheeling agreements
• Project investment exceeds ZAR 13 billion with completion set for 2027
• Deal reflects growing role of private sector in South Africa’s energy transition

As South Africa seeks to stabilize its electricity supply permanently and accelerate its energy transition, new models are emerging to connect businesses to competitive renewable sources. In South Africa, wheeling, a mechanism for delivering renewable electricity via the public network to a private consumer, is being established as a pillar of the energy transition.

Discovery Green has signed its first-ever power purchase agreement with Red Rocket, covering phase 2 of the Overberg wind farm (150 MW) located near Swellendam. The agreement facilitates the annual delivery of 489 GWh to its clients, which include Implats, Fortress Real Estate, Balwin Properties, KP Lime, and The Capital Hotels. This multi-offtaker contract relies entirely on wheeling, demonstrating the private sector's ability to bypass Eskom, the public provider, and secure decarbonized supplies.

The overall investment for the two phases of the project exceeds ZAR 13 billion (about $725 million), funded by Absa, Standard Bank, and the Southern Africa Development Bank. Commissioning is scheduled for 2027.

"This project marks a turning point in the renewable energy landscape in South Africa. Implementing a project of such scale and complexity reflects our commitment to building large-scale, financially viable infrastructure which assists businesses in transitioning toward cleaner energy with simplicity and security. It’s a benchmark model that shows how the private sector can accelerate energy reform while creating long-term value," stated Dan Ginsberg, head of research and development at Discovery Green.

With the progressive liberalization of South Africa's electricity sector, wheeling is becoming a key tool for circumventing public network limitations. Players like Etana Energy and POWERX are multiplying agreements on this model, now joined by Discovery Green. Meanwhile, Red Rocket continues to position itself in the South African renewable market, notably with the recent commissioning of the Brandvalley and Rietkloof wind parks (288 MW).

In the context of an energy transition, this type of private partnership could become a versatile model to follow in order to hasten access to clean, reliable, and competitive energy.