Investec, the niche private banking and wealth management group, has been granted a licence to trade electricity by the National Energy Regulator (Nersa) with the group set to power its Johannesburg headquarters with solar energy.
Mpho Modise, head of renewable energy trading at Investec, said the Nersa approval marked a milestone in the liberalisation and transformation of SA’s energy sector.
“This licence is more than a regulatory milestone — it’s about unlocking competitive advantage for our clients,” said Modise.
“As SA navigates rising energy costs and ongoing supply challenges, we are focused on providing innovative, cost-effective solutions that not only future-proof businesses but also accelerate the shift to renewable energy.”
Next year is set to be a watershed year for renewable energy projects as several are due to come online.
Investec Bank earlier this year made known its intention to embark on trading activities that will be conducted over Eskom’s transmission and distribution networks.
“Investec Bank … will buy power from the Ilikwa Solar PV facility, located near Parys, Free State. Investec Bank will sell and supply power to Investec Bank [facilities], located at 100 Grayston Drive in Sandown, Sandton,” its application read.
Mainstream Renewable Power in December said it had reached financial close on its 50MW Ilikwa solar PV plant. It said the power from the plant would supply multiple private commercial and industrial customers under flexible, shorter-term power purchase agreements in a new-to-market product called renewable energy supply agreement.
Investec, headed by Fani Titi, is a project partner, providing preconstruction development finance as well as debt and equity finance for the construction of the plant.
Mainstream has a 70% equity stake in the project with Investec holding the rest. Construction of the plant has begun and is expected to reach commercial operation in early 2026.
In the application, Investec said it would trade electricity generated by a solar photovoltaic project.
All trading activities will initially occur within the borders of SA, though wheeling across the transmission and distribution systems is operated by Eskom only.
Modise said Investec’s first power procurement project was under construction and was expected to come online in the second quarter of next year.
“The newly awarded licence enables Investec to broaden its energy solution portfolio, providing energy users with flexible, capital-free access to clean and renewable power. At the same time, the licence positions the company as a credible partner for independent power producers, facilitating funding, offtake and wheeling [with] partnerships,” Modise said.
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