Major South African bank to kiss Eskom goodbye

Investec has been awarded an energy trading licence by the National Energy Regulator of South Africa (NERSA).

While this marks another significant milestone in the liberalisation and transformation of South Africa’s energy sector, it will also enable Investec to support its operations and more of its customers. 

“This licence is more than a regulatory milestone landmark – it’s about unlocking competitive advantage for our clients,” said Mpho Modise, Head of Renewable Energy Trading at Investec. 

“As South Africa navigates rising energy costs and ongoing supply challenges, we are focused on providing innovative, cost-effective solutions that not only future-proof businesses but also accelerate the shift to renewable energy.” 

The newly awarded licence enables Investec to broaden its energy solution portfolio, providing energy users with flexible, capital-free access to clean and renewable power. 

At the same time, the licence positions the company as a credible partner for Independent Power Producers (IPPs), facilitating funding, offtake and wheeling which partnerships.

In a statement, Investec said it will focus on the following –

• Client-centric solutions: Delivering tailored solutions that address rising tariffs and sustainability goals, while improving financial performance and operational resilience.
• Bespoke service to IPPs: Attracting and onboarding renewable energy providers by offering a one-stop shop to funding, hedging and offtake.

Recent regulatory changes have opened South Africa’s energy sector to new entrants and innovations, with energy trading increasingly recognised as a critical enabler of the transition to sustainable power. 

By combining advanced technology, market access, and renewable energy partnerships, Investec said it is uniquely positioned to deliver measurable impact for clients. 

Investec’s first power procurement project is currently under construction and is expected to come online in Q2 2026. 

The bank will purchase solar power from the Ilikwa Solar PV Facility in the Free State, which has a generation capacity of 50 MW. Mainstream Renewable Power is leading the project, and Investec holds a 30% equity stake.

Investec first lodged its application for an electricity trading licence with Nersa in early May 2025. In this application, it said that the bank will sell and supply power through the licence to its headquarters in Sandton.