Grid-connected renewable-energy provider Energy Exchange of Southern Africa (EXSA) has achieved progress on two utility-scale solar projects, including one that is expected to come online from June.

EXSA buys renewable energy in bulk under long-term contracts with independent power producers (IPPs) or generators, for resale.

The first project, which had its financial close in 2024, is slated to start commercial operation and feed electrons into the grid from June.

This 5 MW solar project will be supplying several clients.

The second saw EXSA procure an additional 25 MW from a second solar project that had its financial close in 2024, and is expected to start commercial operation in early 2026.

“These projects will contribute directly to adding much-needed generation capacity to South Africa's constrained grid,” says EXSA CEO Wayne Cowie.

Wheeling, the process of transporting electricity from an IPP across the national or municipal grid infrastructure to an end-user located elsewhere, is one of the measures to mitigate South Africa’s energy supply deficit and diversify supply away from the State-owned utility Eskom.

“The use of national electricity grids to wheel power from renewable-energy projects to demand centres is growing in Africa, and countries are putting more regulations in place for private players to wheel renewable power through grid infrastructure,” Cowie states.

“This has allowed private investors to build generating projects to harness solar and wind power and then transmit this to demand centres. Wheeling frameworks across the continent have a way to go, but will enable Africa to scale up installed renewable capacity - driving larger growth in renewable-energy adoption,” he adds.

EXSA was one of the first energy traders to be licensed in South Africa and has been actively trading for almost two years.

It secured one of the initial trading licences granted by the National Energy Regulator of South Africa, and it has since signed contracts to supply energy to Woolworths, Wispeco, Siqalo Foods, Delaire Graaf and Old Mutual, among others.

“Being among the first to receive the trading licence gave us a crucial head start – but the licence itself was just the starting point,” EXSA COO Aishah Gire explains.

The business’s focus since 2023 has been on execution – developing and testing the sophisticated systems needed for accurate energy accounting; establishing strong relationships with both high-quality IPPs and energy consumers; and demonstrating the real-world viability and benefits of wheeled energy.

“This wasn't merely a procedural step; it represented a validation of our company’s technical capabilities, financial standing, and robust business model designed to navigate the intricate regulatory and commercial landscape of South Africa's evolving energy sector,” Cowie avers.

EXSA was founded by Remgro Limited in 2017 and joined by Rand Merchant Bank as its other major shareholder in 2023.

“The energy landscape in South Africa is undergoing profound changes, driven by governmental reforms, regulatory unease, tariffs and infrastructure hurdles. There has been a strong call for private-sector participation and so we believe we’re not just participants but more so active agents of this transformation,” says Gire.