South Africa’s Shift to Renewable Power
South Africa is in the middle of an energy transition. Once dominated by coal, the country is increasingly turning to renewable energy companies to tackle chronic power shortages and Eskom’s load-shedding crisis. Through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), private developers are investing billions of dollars into solar, wind, and battery storage projects.
So far, the REIPPPP has attracted over $16 billion in investment and more than 5,200 MW of clean capacity, making it one of Africa’s largest renewable procurement frameworks.
Major Renewable Energy Companies in South Africa
Mainstream Renewable Power
Mainstream is one of the first movers in South Africa’s clean power market. The company has delivered hundreds of megawatts of wind and solar farms across the Northern and Eastern Cape. It continues to expand with a multi-gigawatt development pipeline under REIPPPP.
Enel Green Power
The Italian multinational is a major player in wind and solar projects. Enel operates several large farms and continues to invest in new capacity, making it one of the most influential renewable energy companies in South Africa.
Scatec
Norwegian developer Scatec has rapidly scaled up in the country. In 2025, it secured an 846 MW solar PV cluster, one of the largest ever awarded under REIPPPP. Scatec is also advancing battery energy storage systems (BESS), including a 103 MW/412 MWh project.
Globeleq
Globeleq owns and operates multiple solar and wind assets in South Africa. With deep experience across Africa, it plays a strategic role in managing independent power producer (IPP) projects and strengthening the country’s energy security.
ACWA Power
Saudi Arabia’s ACWA Power is known for the Redstone Concentrated Solar Power (CSP) plant, a 100 MW project with thermal storage. The company continues to expand its clean energy footprint in South Africa and Southern Africa.
BTE Renewables (formerly BioTherm)
BTE is a South African-rooted company with several wind and solar assets. It represents one of the most successful local IPP platforms, now integrated into wider global investment portfolios.
The Scale of Renewable Energy in South Africa
By mid-2025, South Africa had connected or contracted around 15 GW of renewable energy capacity, including about 9.5 GW of solar power. Wind projects dominate the coastal provinces, while utility-scale solar PV has become the backbone of new generation in the Northern Cape.
The battery storage rollout is a game-changer, allowing the integration of intermittent solar and wind power. Developers are aggressively bidding for BESS contracts to stabilize the national grid.
Why REIPPPP Matters for Investors
The REIPPPP is central to South Africa’s clean energy expansion. It offers long-term power purchase agreements (PPAs) that give investors security and banks confidence. As a result, renewable energy companies in South Africa have attracted both foreign capital and local financing partners.
This framework has created thousands of jobs, spurred local supply chains, and positioned South Africa as a renewable energy hub in Africa.
Challenges Facing Renewable Energy Companies
Despite rapid progress, challenges remain:
- Grid congestion in transmission corridors delays project connections.
- Eskom’s financial crisis complicates electricity distribution.
- Permitting and land-use issues slow down approvals.
- The just energy transition requires balancing coal-dependent communities with clean power development.
Even with these obstacles, South Africa’s renewable energy companies continue to scale, driven by rising demand and supportive policies.
What’s Next for South Africa’s Clean Energy Future?
- Upcoming bid windows (BW7 and BW8) will shape the next wave of solar and wind projects.
- Battery storage tenders will attract both global and local developers.
- Eskom’s transition toward 32 GW of renewables by 2040 could redefine the market.
South Africa is positioning itself not only to solve load shedding but also to become a continental leader in clean energy.
Also read: How South Africa’s Mega-Solar Farms Are Powering a Cleaner Future
FAQs on Renewable Energy Companies in South Africa
Q1. What is the role of renewable energy companies in South Africa?
They develop, finance, and operate solar, wind, and battery projects under the REIPPPP, helping reduce coal dependence and load shedding.
Q2. Who are the leading renewable energy developers in South Africa?
The biggest players include Mainstream Renewable Power, Enel Green Power, Scatec, Globeleq, ACWA Power, and BTE Renewables.
Q3. How much renewable energy does South Africa currently generate?
As of 2025, the country has connected or contracted about 15 GW of renewable capacity, with solar PV making up around 9.5 GW.
Q4. What challenges do renewable energy companies face?
They face grid constraints, financing hurdles, Eskom’s instability, and social transition issues in coal regions.
Q5. Is renewable energy a good investment in South Africa?
Yes. With strong procurement frameworks, high demand, and policy support, South Africa is one of the top renewable energy investment destinations in Africa.
