Terra Firma, a South African independent power producer (IPP) and renewable energy company, has unveiled a new R1.3 billion utility-scale solar energy build programme.
This initiative aims to deliver a combined 110MWp of wheeled energy services upon completion.
Grant Berndsen, CEO of Terra Firma, stated that the project will offer enhanced cost savings and sustainability benefits to customers nationwide.
“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.”
The company noted that the utility-scale projects are being developed at two sites: the Hammanskraal 87MWp Solar PV Project and the Rietfontein 23MWp Solar PV Project, both situated in Gauteng, the country’s main economic and industrial hub.
The wheeling plants will connect to Eskom’s distribution system, allowing customers with signed PPAs to maximize their low-carbon energy supply through flexible, off-site solutions, especially when embedded generation options are maximized, limited, or unfeasible, according to Terra Firma.
Additionally, wheeled energy is expected to reduce the cost of customers’ electricity supply at a time when Eskom bills are rising significantly above inflation.
The state power utility is seeking an electricity price increase of 36.15% for direct customers in 2025, with municipal customers potentially facing a 43.55% hike by June 2025.
Berndsen said that the wheeling projects, once operational, could offer up to a 40% discount on 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 financial transaction that allows energy producers to supply generated electricity from a generation site to consumers or buyers in a different location.
As part of its service, Terra Firma will implement a smart metering system at both the customer’s site and the generation facility.
Using the company’s proprietary software platform, the generated energy is reconciled and offset against the monthly utility time-of-use tariff schedule, providing savings to customers.
The company expects to reach financial close in the second quarter of 2025, 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,” said Berndsen.
Currently, the company is offering customers PPAs ranging 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.”
