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.

The agreement, announced on Thursday, resolves allegations that McKinsey Africa paid bribes to secure consulting contracts with state-owned enterprises Transnet and Eskom between 2012 and 2016. 

The payments were allegedly made in exchange for confidential information that provided the firm with a competitive edge in securing lucrative contracts.

The investigation revealed that McKinsey Africa, operating through local partners, funnelled bribes to officials at Eskom and Transnet. These generated huge profits, estimated at $85 million for both McKinsey and its parent company. 

The firm has entered into a deferred prosecution agreement (DPA) with the Justice Department, admitting to conspiracy charges under the Foreign Corrupt Practices Act (FCPA). 

As part of the resolution, McKinsey Africa has agreed to a criminal penalty of $122.85 million, half of which may be credited towards fines imposed by South African authorities.

This settlement follows the guilty plea of Vikas Sagar, a former senior partner at McKinsey Africa, who admitted to conspiring to violate the FCPA.

McKinsey stated that Sagar’s actions were concealed from the company, and he was dismissed upon the firm’s discovery of the misconduct.

U.S. Attorney Damian Williams commented, “This resolution shows that corruption will not be tolerated, regardless of industry or prominence.”

The case is the latest in a series of high-profile investigations into corporate corruption, with McKinsey’s conduct about the impact of such schemes on fair competition and public trust.

In addition to the financial settlement, McKinsey has committed to implementing tough compliance measures, including enhanced due diligence, anti-corruption training, and more oversight of public sector engagements. This aims to help the company restore its reputation and prevent future violations.

This case reveals increased collaboration between U.S. and South African authorities, the third such coordinated investigation in two years. 

The U.S. Justice Department’s International Corporate Anti-Bribery initiative continues to target corruption in multinational operations, sending a message to companies about the risks of dishonest conduct in emerging markets.