Investec, the Johannesburg-headquartered financial services group, has submitted an application to South Africa’s National Energy Regulator (NERSA) for a licence to operate as an electricity trader. The company’s ambition is to supply power to its own headquarters in Sandton using electricity generated by the Illikwa Solar Photovoltaic (PV) Facility, a 50MW solar power station currently under construction in the Free State province.
The Illikwa Solar PV Facility, spearheaded by Mainstream Renewable Power, is scheduled to become operational in early 2026. Investec holds a 30% equity stake in the project and has played a key role in financing its development, underscoring its strategic alignment with renewable energy investment. The bank’s application to NERSA indicates that the initial phase of this trading venture will utilise the national grid operated by Eskom for energy transmission. However, the company has signalled possible future expansion into municipal grids.
This move is emblematic of a broader trend in South Africa’s corporate landscape, where firms are increasingly seeking energy independence in response to persistent electricity supply constraints and a commitment to sustainability. The growth of private electricity trading is further supported by recent regulatory shifts that have allowed non-traditional energy entities to operate in the space. NERSA has already issued several trading licences to private firms, most notably to Discovery Green, the renewable energy subsidiary of Discovery Limited, which has already secured procurement deals for approximately 1.3GW of renewable power.
Despite the progressive regulatory environment, Eskom, South Africa’s national utility, has contested some of these developments. The utility argues that such arrangements may infringe on its exclusive distribution rights in certain areas, raising concerns over network management and revenue stability. Nonetheless, these objections have not stalled the momentum of independent projects, such as the R4.8 billion Seriti Green wind farm in Mpumalanga, which further exemplifies the country’s increasing pivot toward renewable infrastructure.
Investec’s application could represent a pivotal case for South Africa’s evolving electricity landscape. By leveraging its investment in the Illikwa Solar PV Facility and adopting a self-supply model via Eskom’s transmission grid, the company illustrates how major financial institutions are integrating environmental considerations into operational strategy. This initiative reinforces Investec’s long-standing commitment to sustainability and reflects growing confidence among corporates to engage directly in energy procurement and trading.
As the market continues to evolve, further developments are expected to redefine the roles of both private and public entities in electricity provision. Should NERSA approve Investec’s application, it will add to the increasing number of licensed private traders, potentially reshaping the competitive dynamics of South Africa’s energy sector.
