South Africa’s renewable-energy boom in 2025 was driven less by Eskom and more by the private market. Independent power producers added nearly 3.5 GW of large-scale renewable capacity, much of it sold directly to mines, factories, data centres and other large electricity users through wheeling arrangements. Instead of waiting for utilities or municipalities to procure new generation, businesses began contracting the power they needed themselves.
The money followed. Since South Africa removed the 1 MW licensing cap in 2022, more than R150 billion in private capital has gone into about 6.5 GW of renewable capacity built for private customers. The acceleration was particularly strong from 2024 into 2025, as companies looked for cheaper and more reliable electricity while Eskom tariffs continued to rise. For investors, long-term corporate power contracts provided something the traditional electricity market struggled to offer: a customer willing to pay.
Wheeling was the piece that made this possible at scale. A company does not have to build a solar farm next to its factory or mine. An independent producer can generate electricity somewhere else, put it onto the grid, and the customer receives a financial allocation for that power while paying the network charges. In May 2025, NERSA finalised rules governing third-party wheeling charges, giving developers, traders and customers greater certainty over how these deals would work. Eskom also launched commercial virtual wheeling, allowing electricity contracts to work even when the physical flow of electrons does not match the contracted supply.
The market is now moving beyond simple one-to-one power purchase agreements. Licensed electricity traders are increasingly aggregating several renewable projects and selling power to multiple commercial and industrial customers. That matters because it opens the market to businesses that may consume too little electricity to justify developing their own utility-scale project. Mines and heavy industries have been among the biggest users, with companies including Anglo American, Sibanye-Stillwater, Exxaro and Thungela contracting more than 1,600 MW of renewable capacity.
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The bigger story is what this says about South Africa’s energy transition. Renewable power is no longer simply a government climate policy; it has become a business proposition. Companies can lock in long-term electricity supply, reduce exposure to Eskom’s prices and improve energy security, while developers get bankable customers for new solar and wind projects. The result is a market increasingly being built from the demand side — businesses deciding they need cheaper, cleaner and more reliable power, then creating the investment needed to supply it.
