A further boost for solar PV installation has been a major reduction in the cost of solar modules. Their cost has come down by about 50% during the past year while the cost of batteries has fallen by about 40%. Demand has risen commensurately. South Africa imported an estimated ZAR17.5bn worth of solar panels in 2023, up from ZAR5.6bn in 2022. Rooftop and behind-the-meter solar PV projects have the fewest barriers preventing their progress. The biggest blockage to adding more capacity is the lack of grid connection capacity. This problem is particularly acute in Northern, East and Western Cape supply areas preferred by developers for
utility-scale wind projects. The situation is likely to persist until about 2027 (See future of grid).
Aggregators add new commercial dimension
The changes in regulation have also carved out a niche role for energy traders or aggregators, who are intermediaries that buy power from multiple IPPs for sale to various offtakers, including mining companies, industrial users, municipalities and even Eskom, in different geographical locations.
CASE STUDY Blume Energy, Rise Energy Fund and the Abcon Group
Blume Energy is a South African renewable energy developer with a proven track record in delivering end-to-end energy solutions, from generation and storage to energy efficiency. Beyond cost savings and energy generation, Blume partners with clients to navigate the evolving energy landscape, simplifying the process so businesses can focus on their core operations. This seamless integration of expertise and execution ensures reliable, sustainable energy solutions tailored to client needs. Blume’s seasoned team brings 60+ years of combined experience in the energy sector, having developed more than 350 MW of renewable projects in South Africa. Rise Energy Fund is a leading financier of renewable energy projects focusing on solar generation, battery storage, and other renewable technologies. Rise Energy benefits from direct access to Blume Energy’s development pipeline and provides clients with energy security and savings through Power Purchase Agreements (PPAs) and innovative contracting structures. Its fully integrated approach – combining development, fund and asset management, and EPC services with long-term capital – positions Rise as a leading IPP in the region. Backed by the Abcon Group, a 40-year leader in property and investment management, both Blume Energy and Rise Energy Fund benefit from a legacy of integrated, partnership-driven growth. The Group’s diversified portfolio across commercial property, private equity, listed equity, and renewable energy underscores its commitment to fostering sustainable, independent ventures that shape industries.
South Africa’s Energy Prospects
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