• Private producers added 4,100 MW of renewable capacity in the first half of 2025, up 208% year-on-year.

• Rooftop solar capacity now exceeds 7.3 GW, surpassing government-linked projects under the REIPPPP program.

• The Electricity Regulation Amendment Act (August 2024) established a competitive electricity market, enabling direct energy trading.

South Africa’s decarbonisation strategy increasingly relies on private investment as the country seeks to reduce coal dependency, stabilize power supply, and attract new capital into renewables.

Private companies are driving the shift faster than state reforms. Facing chronic load-shedding and coal’s dominance in the energy mix, large corporations are building a parallel market for green power. Growthpoint Properties’ acquisition of a 30% stake in Boston Hydro on November 7 exemplifies this momentum.

Since the government lifted licensing requirements for private producers in late 2022, confirmed by the Department of Mineral Resources and Energy (DMRE), renewable projects—especially solar and wind—have expanded rapidly.

The National Energy Regulator of South Africa (NERSA) recorded more than 4,100 MW of new private capacity in the first half of 2025, a 208% year-on-year increase. Rooftop solar capacity reached 7.3 GW, slightly exceeding the 7.17 GW connected under the public REIPPPP scheme, according to the South African Photovoltaic Industry Association (SAPVIA) and the DMRE. Industrial facilities, shopping malls, banks, and real estate firms are installing these systems to secure supply and cut emissions.

New Legal Framework Boosts Competition

The Electricity Regulation Amendment Act, enacted in August 2024, formalised a competitive power market. It allows companies to buy and sell electricity directly through Power Purchase Agreements (PPAs) and the “wheeling” mechanism—private electricity transmission through Eskom’s grid for a fee set by NERSA.

This framework enables the emergence of new business models in the power sector and diversifies supply sources beyond Eskom’s control.

Growthpoint Properties, South Africa’s largest listed real estate company, is transforming its buildings into decarbonisation hubs. The firm buys around 195 GWh of renewable energy annually from Etana Energy, sourced from hydro, wind, and solar generation. Although the power flows through Eskom’s public grid, Growthpoint certifies its renewable share via I-REC certificates, which it resells to tenants such as Nedbank. The bank now powers 26 branches with certified renewable electricity, incorporating the data into its carbon footprint reporting.

Eskom said the national energy shortfall dropped from 13.2 TWh in 2024 to just 0.4 TWh in 2025, crediting improved grid maintenance and rapid private generation growth for the turnaround.

This article was initially published in French by Abdel Latif Boureima

Adapted in English by Ange Jason Quenum