South African renewable energy firm Terra Firma has unveiled a substantial R1.3 billion ($73.8 million) solar energy project to combat the country’s escalating electricity costs. The project aims to produce a total of 110MWp of solar power, utilizing Eskom’s grid through an innovative financial approach known as “energy wheeling.” This venture is set to deliver considerable economic and environmental advantages to South Africa’s commercial and industrial sectors, which are currently facing an energy crisis exacerbated by Eskom’s potential tariff increases of up to 43.55% by mid-2025.
The solar initiative will be based at two primary locations in Gauteng — Hammanskraal and Rietfontein — with capacities of 87MWp and 23MWp respectively. Energy wheeling will enable the transfer of the generated solar power across different locations using Eskom’s infrastructure. Grant Berndsen, CEO of Terra Firma, has stated that this energy wheeling model could offer customers savings of up to 40% on their electricity bills, providing a much-needed alternative as Eskom’s prices continue to soar.
The model is particularly designed to serve clients through Power Purchase Agreements (PPAs), which will allow them to enjoy the cost benefits of renewable energy without having to host the infrastructure on-site. Additionally, by integrating with embedded generation systems, businesses can further refine their energy strategies for daytime operations.
Terra Firma is offering corporate clients flexible PPAs, ranging from five to 20 years, which not only ensure predictable energy costs but also support the transition to a more sustainable economy. The projects will also feature advanced smart metering technology and a proprietary software platform to track and balance energy usage against utility tariffs, ensuring maximum cost efficiency.
Berndsen emphasizes the role of data in energy management, enabling customers to leverage technologies such as artificial intelligence for enhanced operational efficiency. The financial close for the solar project is anticipated by the second quarter of 2025, with an 18-month construction timeline. The project is expected to be operational by August 2026.
