SA’s transition towards a diversified energy mix has put private power producers (PPPs) such as Sola at the forefront of the renewable energy industry.
As one of the leading players in the solar energy sector, Sola is making strides with projects such as the 150MW Springbok solar power plant project in Virginia, the Free State.
However, the project is mired in a legal dispute with energy company Renergen, which alleges unauthorised construction within its gas production rights area. This conflict highlights the complexities of SA’s energy landscape, in which overlapping interests between different energy sources often spark contention.
Business Day spoke to Sola MD Katherine Persson about the company’s strategies amid these challenges and its vision for the future of SA’s energy landscape.
Can you describe Sola’s mission in the SA renewable energy sector?
Sola is a 100% SA renewable energy solutions provider specialising in the development, construction, and operation of solar photovoltaic (PV) and battery energy storage projects.
We deliver clean energy to corporate clients through power purchase agreements (PPAs), for both on-site projects and via wheeling across the national grid. We are building 426MW and are operating 370MW of renewable wheeling projects, which we also own alongside various local black equity partners.
What are some of the major projects the group has undertaken, and how do they contribute to the local energy landscape?
Milestone projects for Sola include the Adams 11.5MW project, which was the first major corporate PPA and the first wheeling project in SA. This was followed by our 256MW solar wheeling facility for Tronox Mineral Sands, which helps Tronox offset more than 420,000 tonnes of carbon annually. Both of these projects are fully operational.
Project Springbok is in the advanced stages of construction and will connect to the grid in the third quarter of 2025. This project was the first multibuyer project in SA — selling to AB InBev, Sibanye-Stillwater and a large international tech company.
The project also includes selling available power to businesses on a short-term and flexible basis.
How does Sola approach project development and implementation in the face of regulatory uncertainty and grid connection constraints?
Regulatory uncertainty is unfavourable for investment in SA, so we are constantly working closely with a number of stakeholders, including Eskom, to solve challenges and create more certainty.
Though some difficulties remain, big efforts are under way to remove red tape and improve various aspects of the project development and implementation process. These include the Energy One-Stop Shop and the national energy crisis committee interface between business and government.
Each project has its challenges, but we approach these with a problem-solving attitude and in partnership with our specialist advisers, lenders, shareholders and community stakeholders.
Can you provide an update on the status of the Springbok solar project dispute with Renergen, and what are the key issues at stake?
The latest event is the department of mineral resources & energy’s refusal to grant an interim suspension of Springbok’s approval. This application was made by Renergen (on behalf of Tetra4) as part of an appeal against Springbok, on the basis that consultation did not take place with them as the rights holder.
Springbok has been engaging with interested and affected parties since as far back as December 2021, and has directly engaged with Renergen on no less than 10 occasions over two years, during which no objection to the project was raised. We have been in discussions with Renergen since May 2024, when they raised their complaints against the project, once it was already significantly advanced in construction.
Renergen holds a production right for gas extraction over a large area of the Free State that overlaps with the Springbok project footprint — the Springbok area represents less than 0.17% of the overall right area. There are a number of ongoing legal processes including the determination of an appeal against one of Springbok’s environmental authorisation amendments, and a court interdict, all of which were submitted by Renergen.
This is an unfortunate situation, but Sola remains focused on resolving the matter to avoid any further effect on the stakeholders that stand to benefit from Springbok, including the buyers, shareholders, local community and the 400 people employed as part of the construction team.
How do you see this dispute affecting the broader renewable energy sector in SA?
Renergen’s threats to stop construction of Springbok have raised concerns within the industry about the potential for other rights holders to attempt to halt renewable energy development and implementation. With more renewable energy projects now being located in areas where there are also extensive minerals and gas interests, the overlap and competing interests of minerals/gas and renewables are becoming more commonplace.
We need to find appropriate ways for renewables to expand rapidly alongside existing mining and conventional energy, as this is in the best interests of the country, given the pressure for SA to decarbonise.
What challenges does Sola face in the existing energy market, and how are you addressing it?
We would like to implement renewable energy projects more frequently and faster. SA has a vast renewable resource and a need to decarbonise rapidly. One of the biggest challenges is the remaining available capacity to connect to the grid without major upgrades and the pace at which those are being made.
Since its establishment, the National Transmission Company of SA has been leading discussions with the government, lenders and the private sector to fast-track major grid works via a [public-private partnership] approach. There continues to be ongoing engagement with Eskom’s grid access unit to accelerate connection processes and ensure it is fair and transparent.
How does Sola collaborate with other stakeholders in the renewable energy sector?
We believe strongly in collaboration and working with stakeholders to overcome challenges and create broad-based benefits.
We were one of the first renewable energy project developers in SA and a founding member of the SA Photovoltaic Industry Association, so we have a long history of engaging with other industry stakeholders to help shape and develop the renewable energy market.
One of our strongest areas of collaboration is with local community stakeholders, in which we work closely to ensure the maximum benefit is delivered to them.
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