Terra Firma, a South African independent power producer (IPP) and renewable energy company, has announced a new R1.3 billion utility-scale solar energy build programme that will deliver a combined 1 10MWp of wheeled energy services once completed.
Grant Berndsen, CEO of Terra Firma, says the project will provide improved cost savings and sustainability benefits to customers throughout the country.
“Commercial and industrial customers − specifically in the manufacturing, extractive and digital infrastructure sectors with power purchasing agreements (PPAs) in place − will benefit from cost-effective renewable energy delivered via Eskom’s grid.
“We believe wheeling will be a vital part of South Africa's rapidly-evolving energy sector, providing multiple benefits that align with the country's broader energy and sustainability goals.”
According to the firm, the utility-scale projects are in development at two sites: the Hammanskraal 87MWp Solar PV Project, and the Rietfontein 23MWp Solar PV Project, both located within Gauteng, the country's main economic and industrial hub.
The wheeling plants will interconnect to Eskom’s distribution system, enabling customers with signed PPAs to maximise their low-carbon energy supply through flexible, off-site solutions, particularly in instances where embedded generation options have been maximised, are limited or unfeasible, says Terra Firma.
It adds that wheeled energy will lower the cost of customers’ electricity supply at a time when their Eskom bills are increasing well above inflation.
The state power utility is applying for an electricity price hike of 36.15% for direct customers for 2025. Municipal customers could face a 43.55% price hike by June 2025.
Berndsen says the wheeling projects, once completed, could deliver up to 40% discount to customers’ current energy costs.
“We are in discussions with commercial and industrial customers to establish long-term energy strategies, which include a combination of embedded solar and battery energy storage systems with a top-up of wheeled energy for the balance of their daytime operations.
“Once live, we will draw on our experience with commercial solar projects throughout South Africa, as well as our smart metering and software platform, to deliver a world-class energy wheeling offering to corporate South Africa.”
Energy wheeling is a type of financial transaction that enables energy producers to supply generated electricity from a generation site to consumers or buyers in a separate location.
As part of its offering, Terra Firma will implement a smart metering system at both the customer’s site and generation facility.
Using the company’s proprietary software platform, the energy generated is reconciled and is offset against the monthly utility time-of-use tariff schedule, delivering savings to customers, it notes.
“We have made substantial investments in our smart metering software solutions to deliver greater visibility, control and data accuracy to our customers’ energy management,” says Berndsen.
“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-gen technologies such as AI for greater energy and operational efficiency, as well as realising maximum benefit of a project’s green attributes.”
The company expects to reach financial close in the second quarter of 2025, which will be followed by an 18-month construction period.
“Customers will gain access to the wheeled energy from August 2026 and receive cost savings, as well as carbon credits for purchasing renewable energy,” says Berndsen.
The company is currently offering customers PPAs from five to 20 years in duration. “We are ready to provide guidance to corporate South Africa around the role that energy wheeling can play in their cost of energy supply, drawing on our experience within the private sector, as well as our understanding of the regulatory landscape and network expertise.”
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