Green energy in SA: still accelerating, still transforming

Shifting geopolitical alliances, economic pressures and evolving social priorities have blurred the lines of cooperation that once defined the climate agenda. Yet, South Africa’s green energy transition is progressing with remarkable clarity and purpose.

By Vincenzia Leitich, Executive-Vice President of Energy and Infrastructure, Standard Bank.

South Africa’s energy landscape has evolved significantly over the past decade. What began with government-led procurement programmes has now expanded into a vibrant market driven by private sector investment and commercial demand. The success of early initiatives laid the groundwork, but today’s momentum is being sustained by a new generation of developers, financiers and energy users. Even in the face of grid constraints and regulatory delays, the sector is not slowing down. Instead, it is adapting and innovating.

One of the most profound shifts in the market is the move away from isolated, one-off projects toward scalable platforms. This evolution reflects a deeper maturity in the sector. Developers are no longer focused solely on building individual assets; they are aggregating portfolios, creating operational efficiencies and unlocking economies of scale. These platforms are not just more bankable; they are more strategic. They allow for long-term planning, better risk management and the ability to replicate success across regions and technologies.

This shift is enabling a new kind of partnership between developers and financiers. Financing models have also undergone a transformation. Traditional project finance structures, while foundational, are no longer sufficient to meet the complexity and scale of modern renewable energy transactions. New instruments are being introduced to unlock capital, mitigate risk and enhance liquidity. Payment guarantee facilities, for example, are helping to free up equity and strengthen the financial viability of projects. The rise of private off-take models is a significant development. Businesses across sectors, are actively seeking clean energy solutions to decarbonise operations, hedge against rising energy costs and meet sustainability commitments. These new models reflect a growing recognition that energy is also a source of competitive advantage.

Financing models have undergone a transformation.

Geography is playing an increasingly strategic role in South Africa’s energy transition. Regions like the Free State and Mpumalanga are emerging as renewable energy hubs due to their proximity to grid infrastructure, industrial demand and skilled labour. In the Free State, utility-scale solar projects are being wheeled through off-takers in urban centres and industrial zones. This wheeling model allows clean energy to reach areas of high demand, even when generation is located remotely. Mpumalanga, long associated with coal, is now at the heart of the Just Energy Transition. Here, the repurposing of grid capacity and retraining of local labour are unlocking new opportunities in wind and solar development, creating jobs, building skills and empowering communities. They are helping to ensure that the transition is inclusive, delivers tangible benefits to local economies and strengthens resilience in areas most affected by the shift away from fossil fuels.

The emergence of energy traders and market makers is another important development. Companies are reshaping how energy is bought, sold and distributed, introducing new models of exchange that enable greater flexibility. These players are helping to match supply with demand, facilitate wheeling arrangements and create new pathways for energy access. Their role is important in where decentralised generation is becoming more prevalent. This decentralisation is part of a broader trend towards the liberalisation of energy.

Hybrid solutions that pair generation with storage are gaining popularity, enabling load-shifting and grid optimisation. Digital technologies are enhancing forecasting, monitoring and control, improving efficiency and reliability. Cross-sector collaboration is driving integrated solutions, bringing together energy providers, industrial users, municipalities and financiers to address shared challenges. Regulatory reform remains essential, and continued policy evolution will be key to unlocking investment and streamlining development.

Geography is playing an increasingly strategic role in South Africa’s energy transition.

Climate resilience is becoming a central consideration. Projects are increasingly being designed with adaptation in mind, ensuring that infrastructure can withstand the impacts of a changing climate. Our energy transition is not a linear journey. It is a dynamic process shaped by collaboration and strategic vision. While global uncertainties may shift priorities, the momentum in South Africa is unmistakable. The sector is moving forward. The investments being made today are laying the foundation for a more prosperous energy future. They are creating new markets, empowering communities and redefining what is possible.