Corporates To Drive South Africa’s 2.3 GW Solar, Wind Growth
Bloomberg New Energy Finance (BNEF) projects South Africa to add 2.3 GW of new solar and wind energy capacity in 2026, with 73% of it supported by corporate buyers.
Analysts point out that, for the first time, corporate power purchase agreements (PPAs) are expected to drive more utility-scale renewable additions than government auctions.
The shift comes as South Africa moves beyond the ‘worst’ phase of its power crisis as persistent load shedding has ended after coal plants returned to service and private-sector participation increased.
South Africa’s power crisis has helped accelerate the adoption of clean energy, including solar and stationary storage. BNEF hails the government’s Battery Energy Storage Independent Power Producers Procurement Program (BESIPPPP) for making clean energy a key tool for grid stability, along with private sector solar projects (see Solar Wins South Africa’s REIPPPP 7 Renewable Energy Auction).
According to BNEF’s South Africa Transition Factbook 2026, private clean-power procurement is becoming a larger part of the country’s electricity market.
Since 2020, corporates in South Africa have signed up for 5 GW of clean power, including 3.1 GW from standalone projects and 1.9 GW from co-located projects. Standalone capacity comprises 1.5 GW of wind and 1.6 GW of solar, while co-located projects have become more popular in 2026, particularly solar-plus-storage.
Corporate buyers are also expected to remain the main driver of renewable additions through the end of the decade, BNEF said. Developers and buyers, however, continue to face challenges around project complexity and finding enough revenue streams to fully monetize batteries.
Under the PPA arrangement, solar energy remains cheaper than wind. In 2024-2025, solar PPAs in South Africa averaged ZAR 935/MWh, compared with ZAR 1,102/MWh for onshore wind. In 2026, BNEF expects solar PPA prices to fall to ZAR 848/MWh, while wind prices are forecast to rise slightly to ZAR 1,104/MWh.
However, the pace of investment could be limited by the availability of transmission capacity, even as investors, developers, and corporate energy buyers plan additional clean-power projects.
BNEF said faster grid expansion will be important if South Africa is to translate rising clean-energy investment into broader economic growth.
Nelson Nsitem, Africa Research Lead at BNEF, said the transition has reached a ‘critical inflection point’. “To date, private companies have played a central role in bringing new clean power into the system, but the next phase will depend on whether infrastructure can keep pace with investment,” added Nsitem.