Thought leadership by David McDonald, CEO at SolarAfrica
For more than a decade, South Africa’s energy sector was stuck in a constant state of crisis. But in 2025, we finally saw a real step change as the industry shifted from firefighting to a future-facing mode.
It is still far from perfect, and the road is not yet smooth, but for those of us in the renewable energy space, it felt like watching a sector long stuck in neutral finally click into gear.
Here are five big power moves that defined the year.
Power Move 1: SA moves towards a wholesale energy market
With the imminent introduction of the South African Wholesale Energy Market (SAWEM) in 2026, this year was the moment South Africa placed real momentum behind electricity market reform. SAWEM will shift us from a single-buyer system, where Eskom controls everything, to a competitive and open electricity market. It is something we have discussed for years, and we are now seeing it materialise.
A few weeks ago, the National Energy Regulator of South Africa (NERSA) approved the country’s first market operator licence. It is a precursor to SAWEM and signals a future in which private players trade and wheel power, much like an “electricity stock exchange”.
This shift sets the foundation for generators to sell to multiple offtakers and for licensed traders to compete on price and flexibility. The knock-on effect will be increased private investment, greater competition, and lower prices. For businesses, this marks a new era of choice and greater agency over their energy mix.
Power Move 2: The great trading licence boom
If 2024 was a trickle, 2025 was the watershed. Demand for electricity trading licences surged as companies raced to secure their position in the emerging merchant market.
This boom unfolded even as rules were still being defined. Despite regulatory uncertainty, momentum has not slowed. The industry’s appetite for buying and selling power dynamically has outpaced the regulatory environment, reflecting how strongly the country’s commercial and industrial sector wants alternatives to traditional grid reliance.
Once the final framework is published, market participation is expected to climb even faster.
Power Move 3: One-to-many generation becomes a reality
Traditionally, Independent Power Producers signed a single PPA with one customer. The “one-to-one” model has long shaped South Africa’s private generation landscape.
In 2025, that changed. A utility-scale solar farm went online and began wheeling power to multiple corporate customers simultaneously in a “one-to-many” model.
This Free State-based project made headlines, but its significance extends far beyond one site. South Africa now has a proven model for shared-asset private generation that serves multiple offtakers at scale.
SolarAfrica’s SunCentral project between De Aar and Hanover, with a total planned capacity of 1 GW, is another example of a development built for aggregated offtake. Its power is expected to come online in early 2026. Many others will follow.
Power Move 4: Private capital enters the group chat
A major milestone came at this year’s Medium-Term Budget Policy Statement. Government confirmed that private sector participation in transmission infrastructure would be allowed, covering third-party funded transmission lines, private grid expansion under Eskom oversight, and cost-sharing models between Independent Power Producers and the state.
This change allows private partners to co-fund and co-develop sections of the transmission network. In practice, it helps ease grid bottlenecks that currently prevent renewable energy projects from connecting at scale. The result will be more capacity, faster rollout and fewer constraints choking private generation.
Power Move 5: Corporate South Africa goes all in on renewables
If there was any doubt about corporate appetite for renewables at scale, 2025 removed it.
Heavy power users across mining, automotive, manufacturing and agriculture signed some of the largest renewable PPAs in the country’s history, many under wheeling arrangements. Sustainability pressures, such as the Carbon Border Adjustment Mechanism, have played a role, but affordability is an equally strong driver as electricity tariffs continue to rise.
This momentum has strengthened the case for utility-scale private generation and accelerated demand for flexible wheeling solutions. At SolarAfrica, we have seen this shift first-hand as businesses seek long-term stability.
If 2025 was the year the gears finally clicked into place, 2026 is when the industry moves into full momentum. Buckle up.
