Bronwyn Timm, SOLA GroupThe South African renewable energy sector is moving from momentum to maturity. Across industries, clean power isn’t perceived as a hedge against loadshedding anymore.

It has become a core business strategy thanks to a set of reforms and technologies that have made renewable energy more accessible and affordable.

Over the past 18 months, the structure of the market has changed thanks to policy reforms that have created a space for private energy generation, traditional wheeling and the launch of virtual wheeling.

The latter model allows companies to access renewable energy generated offsite through a system of rebates to match the power a business uses from the national or municipal grid with the clean energy generated from an IPP.

Eskom launched the framework to simplify access for corporates on Low Voltage Eskom connections and municipalities.

One of the first virtual wheeling electrons was with Vodacom and their PPA with SOLA Group went live in September 2025, making it the first in the country and on the continent to make the move to the virtual wheeling model.

It is a breakthrough moment, especially for small to medium enterprises. Renewable energy has become more accessible and affordable, without requiring that companies build their own physical plants or on-site installations.

It opens the door to clean and lower-cost power – a flexibility that means SMEs can balance their power needs against their budgets. They can buy renewable energy without owning infrastructure.

Traditional power purchase agreements (PPAs) often last as long as 20 years and require a significant long-term commitment.

The model ensured reliable power but also limited participation to large corporates and mining houses with financial heft.

With the virtual wheeling model now available locally, SMEs can enjoy the same benefits but with short-term, flexible contracts that are more aligned to their operational realities.

IPPs, like the SOLA Group, have developed rolling and short-term PPAs designed to offer companies flexibility and an immediate OPEX saving.

Translated, this means the barrier to entry is lowering so SMEs can secure renewable power without having to invest in panels on their roof.

This flexibility is deepened by the upcoming South African Wholesale Electricity Market (SAWEM) which is expected to go live in 2026.

It enables licensed market participants to trade energy as a commodity, which will increase both competition and transparency.

It will in time give SMEs the ability to then compare offers, buy from clean generators and manage energy costs more predictably.

Another factor that’s changing the renewable picture is the evolution of battery energy storage systems (BESS).

Global storage prices have dropped considerably, averaging $115 per kWh as of the end of 2024, according to BloombergNEF, and this cost reduction has made it feasible for developers to include batteries as standard in new projects.

This translates into consistent power as solar and wind output is now stored in batteries to provide energy on demand. The combination of virtual wheeling and storage is turning intermittent renewable generation into a 24/7 supply chain.

The next step is the grid itself. South Africa’s transmission network is nearing capacity in high renewable energy resource provinces like the Northern Cape which is sparking further discussion and investment into capacity to minimise the risk of energy disruptions.

As the SA energy market evolves, the conversation is moving away from loadshedding as companies ask whether they still need their own energy strategies.

The answer is yes. Energy self-reliance, particularly with clean energy, is a competitive advantage. It shields companies from price volatility and reduces carbon exposure; it also positions them for export markets that are tightening their environmental standards. Resilience is defined as flexibility and choice, and in a company’s ability to participate in a cleaner and smarter energy system.

Perhaps the most important outcome of these reforms is participation. SMEs employ nearly 60% of the South African workforce and yet have been historically excluded.

Virtual wheeling and flexible PPAs change the equation and allow SMEs to access the same cost benefits and sustainable credentials as large enterprises.

The ripple effect of this inclusivity is profound. When companies have access to cheaper and predictable energy costs, this improves their cash flow and competitiveness, with a knock on effect for communities and the economy.

A more distributed market reduces the strain on the national grid while stimulating economic inclusion.

As South Africa continues to decentralise its energy system, the next wave of growth relies on keeping this access open.

This program applies IBM technologies, such as hybrid cloud and artificial intelligence, and an ecosystem of experts to enhance and scale projects focused on populations vulnerable to environmental threats, including climate change. All new members will focus on accelerating clean energy projects.

IBM has previously announced it plans to select five organizations for this program each year and expects to provide $30 million worth of services by the end of 2023.

According to the International Energy Agency, the impacts of the COVID-19 pandemic, disruptions to global supply chains, and diversion of fiscal resources to keep food and fuel prices affordable, have affected the pace of progress toward the United Nations Sustainable Development Goal (SDG 7) of ensuring access to affordable, reliable, sustainable, and modern energy by 2030.

“With the IBM Sustainability Accelerator, we are convening experts and using innovative technologies to help tackle the toughest environmental challenges our planet faces; and transitioning to clean energy is a critical step right now,” said Justina Nixon-Saintil, Vice President of Corporate Social Responsibility and ESG at IBM. “With this new cohort, helping marginalized communities get just and equitable access to sustainable energy resources not only helps the world achieve the goal of UN SDG7, but can help in the larger global energy transition.”

After evaluating more than 100 submissions from around the world, IBM selected these organizations to become the clean energy cohort of the program:

– United Nations Development Programme: UNDP is working with IBM to increase access to sustainable, affordable and reliable energy in African countries, focusing on those furthest left behind. The goal is to forecast electricity access to better guide policy and investment decisions, using UNDP’s technical knowledge and IBM’s artificial intelligence and geospatial analytics.

– Sustainable Energy for All: IBM is working with Sustainable Energy for All to build an intelligent model to project energy needs based on current and future human activity. This model will be designed to help to address key development challenges (e.g., lack of energy access and poor healthcare) and support the development of robust infrastructure planning, such as electrification plans. IBM machine learning and IBM Cloud technology and expertise will be used to build and scale open-access datasets and an energy needs model using temporal and spatial data. Kenya and India are being explored as the first regions to pilot the model.

– Net Zero Atlantic: Net Zero Atlantic is collaborating with IBM to create an interactive digital tool that will geospatially display environmental and socioeconomic impacts of possible energy system futures for Nova Scotia. Ultimately, the goal is for Indigenous communities in Nova Scotia to leverage advanced modeling capabilities to inform their input into energy and development planning. The tool aims to be easy-to-use, locally relevant and time efficient. It will be designed to produce easy-to-understand visual results using IBM technology such as the IBM Environmental Intelligence Suite and IBM Cloud.

– Miyakojima City Government: The Miyakojima City Government is working with IBM to support the development of a renewable energy strategy including a microgrid on Miyakojima Island, a distant community facing severe climate issues due to typhoons in Japan, with the goal of helping their residents, who rely on a clean local environment for the tourist industry and agriculture. Miyakojima City Government and IBM will collaborate to leverage technologies such as IBM Environmental Intelligence Suite weather data and IBM Cloud to model electricity demand and advise energy infrastructure development.

– Environment Without Borders Foundation: Environment Without Borders Foundation’s collaboration with IBM will be aimed to develop a platform to forecast, track, and communicate clean energy usage options in Egypt. The goal is to enable resilient and sustainable infrastructure and operations for clean energy in Egypt, helping residents of remote villages for whom energy is currently both expensive and unreliable. The clean energy management platform will leverage IBM Environmental Intelligence Suite and IBM Cloud.

The selection process considered the applicant’s commitment to support communities who are especially vulnerable to environmental threats, its ability to increase access to affordable clean energy services, its strategic focus and transparency on measurement and reporting, among others.

More about IBM Sustainability Accelerator
Launched in February 2022, the IBM Sustainability Accelerator is a social impact program that addresses multiple environmental threats around the world each year.

The accelerator selects 5 projects to scale solutions that benefit communities that face challenges such as climate change, pollution, extreme weather and more.

The program currently has two active cohorts; the first one is focused on sustainable agriculture and the second on clean energy.