Independent power producer Terra Firma has begun developing a R1.3bn solar energy build programme, which will see the construction of two utility-scale projects in Hammanskraal and Rietfontein in Gauteng.
The development will provide a combined 110 megawatt peak (MWp) of wheeled energy services across the country. Terra Firma now offers customers power purchasing agreements ranging from five to 20 years at “flexible terms”.
“Commercial and industrial customers specifically in the manufacturing, extractive and digital infrastructure sectors with power purchasing agreements in place will benefit from cost-effective renewable energy delivered via Eskom’s grid,” the group’s CEO, Grant Berndsen, said.
By connecting generation sites to Eskom’s existing transmission network, energy wheeling allows independent power producers such as Terra Firma to supply cost-effective renewable energy to customers across SA “at a time when the cost of Eskom’s energy is increasing well above inflation”.
Given the cost-saving potential of wheeled energy, Berndsen estimates the 110MWp project could deliver a discount of up to 40% to customers’ electricity costs.
The cost-saving potential is particularly notable after Eskom’s recent application for a 36.15% price hike for its direct customers next year, while municipal customers could see a 43.55% price hike by next June.
Terra Firma customers will also benefit by receiving carbon credits for purchasing renewable energy.
Berndsen told Business Day that wheeling “enables customers to obtain higher renewable energy penetration — a higher percentage of renewable energy utilised out of a customer’s total consumption — via wind energy and battery energy storage, that would typically not be achievable on site”.
The project will also incorporate a smart metering system at the generation facility and the customer’s site, using Terra Firma’s proprietary software platform to “deliver greater visibility, control and data accuracy to customers’ energy management”, he said.
“By leveraging the intelligent energy data delivered using our systems, customers can make more informed decisions over their energy needs, with the ability to integrate next-generation technologies such as artificial intelligence for greater energy and operational efficiency, as well as realising the maximum benefit of a project’s green attributes.”
Construction is set to begin in the second quarter of next year and is expected to take 18 months, with customers gaining access to the new wheeled energy from August 2026.
“We believe wheeling will be a vital part of SA’s rapidly evolving energy sector, providing multiple benefits that align with the country’s broader energy and sustainability goals,” Berndsen said.
While wheeled energy is still in its infancy with only a handful of projects operational, he said he expected a significant increase in the number of projects as municipal regulations for third-party wheeling were being finalised.
The recent launch of Eskom’s National Transmission Company (NTC), which marked the first step in the utility’s unbundling, also boded well for the prospects of wheeled energy.
“One of the key hindrances to the implementation of wheeling in SA to date has been the process for securing grid access, as well as increasing the transmission capacity in renewables’ rich areas. The creation of Eskom’s NTC should certainly assist in this and expedite the rollout of grid infrastructure and upgrades.”
Other operational wheeled projects now include a 10MW build by Amazon, 200MW one by Tronox and Sasol’s recently commissioned 63MW Msenge Emoyeni wind project.
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