South Africa’s Power Market in Transition: PNE Sells 250 MW Solar Project

Cuxhaven – Wind and solar project developer PNE has sold a photovoltaic project with a planned capacity of 250 MW in South Africa. The buyer is a South African independent power producer (IPP), which was not named.

South Africa is gradually opening up its power market, so far heavily shaped by state-owned utility Eskom, to greater competition. Alongside government tenders, private power purchase agreements (PPAs) give international project developers additional routes to market their wind and solar projects.

PNE to Continue Developing Sold Project

The project is located in the Free State province. After the sale, PNE South Africa will continue to develop it and support the buyer until financial close. PNE did not disclose the purchase price or the planned commissioning date.

PNE has previously sold larger solar projects in South Africa. In 2024, the company sold the Khauta South project (240 MW) and the Khauta West project (110 MW) to the NOA Group. Khauta South reached financial close in June 2025. The case shows that more than a year can pass between a project sale and financial close.

As of June 2026, PNE’s South African project pipeline comprised around 2,000 MW of photovoltaics and 2,800 MW of wind energy.

In October, PNE lowered its 2026 EBITDA forecast from a range of EUR 90 million to EUR 120 million to a range of EUR 60 million to EUR 75 million. The company cited delays in project sales and permits, as well as the decision to retain certain wind farms in its own portfolio, among other reasons. According to PNE, expected earnings contributions are likely to shift partly into 2027 as a result.

South Africa Eases Private Power Supply via the Grid

With the Electricity Regulation Amendment Act, passed in 2024 and in force since early 2025, South Africa created the legal basis for a competitive wholesale power market and an independent transmission system and market operator. The law sets a deadline of the end of 2029 at the latest for establishing the independent transmission system operator.

In parallel, Eskom is making it easier to supply private power via the public grid. Under so-called wheeling, independent producers feed in electricity that is sold to customers at separate locations. The basic principle is familiar in Germany from grid-based PPAs.

Under traditional wheeling, the privately sourced electricity is reflected directly in the customer’s power bill. Under virtual wheeling, by contrast, the customer continues to pay the regular power bill. A separate financial credit for the privately contracted volumes is issued outside the regular bill. This particularly simplifies the handling of private power supply to multiple customers across different grid areas.

Source: IWR Online, 04 Nov 2026