Maturing policy frameworks, improving battery storage solutions economics, private-sector investment and the introduction of the wholesale energy market creates a powerful foundation for long-term stability in the South African energy sector, says solar asset management company Sustainable Power Solutions (SPS) chief growth and marketing officer Anja Visagie.

SPS is “excited” to continue supporting the realisation of this market through “technically robust, commercially viable” renewable-energy solutions for businesses across sub-Saharan Africa.

“Our mission is to be the most trusted private utility partner, reimagining energy provision for our clients,” she adds.

Energy security is improving gradually, owing to higher private generation capacity, declining costs of renewable energy, and changing market structures; however, “grid constraints remain a significant bottleneck”.

Nonetheless, the accelerated deployment of energy storage is being driven by cost reductions and policy reforms while private wheeling is increasingly more viable.

Underpinning these developments are concerns about carbon taxes, locally and globally, as well as more stringent corporate environmental, social and governance requirements.

There is also a notable increase in the adoption of off-grid and hybrid systems, prompted by grid constraints and utility pricing.

“SPS is positioning itself by developing fully off-grid and hybrid solutions for users who cannot reliably access the grid,” she says, adding that the company is also participating actively in virtual wheeling schemes as policy reforms mature.

The emergence of the wholesale electricity market will reshape the way electricity is secured, with support for a more decentralised, flexible and resilient energy system, notes Visagie.

Key Trend

The most important trend in the South African energy space is virtual wheeling, which allows for power to be sold from independent power producers (IPPs) connected to State-owned power utility Eskom to customers in municipalities that are “in good financial standing” with Eskom.

“This is a game-changer because large IPPs can now serve smaller commercial and industrial clients that previously didn’t qualify under traditional wheeling rules.”

Visagie adds that the establishment of the South African Wholesale Electricity Market (SAWEM) will be crucial, and that government indicated in June 2025 that SAWEM is targeted to launch in 2026, enabling end-users to buy electricity from multiple sellers.

“This reform has the potential to fundamentally transform the sector.”

Additionally, the increase in South Africa’s carbon tax from 2025 has intensified interest in renewable energy among businesses aiming to mitigate escalating compliance costs.



Visagie notes that SPS expects private investment to remain the dominant driver of renewable expansion in 2026 – even as government entities, such as Eskom, explore the construction of their own renewable assets – while energy security is expected to strengthen meaningfully in 2026, as more private generation and storage capacity comes online.

“South Africa’s renewable-energy sector is fundamentally driven by private capital. Unlike many countries where public entities build large-scale renewables, South Africa’s market is almost entirely private sector-led,” she concludes.