Investec Seeks Licence to Trade Electricity in South Africa

Investec, the JSE- and LSE-listed private banking group, has lodged an application with South Africa’s National Energy Regulator (NERSA) for a licence to trade electricity.

If approved, the bank will purchase solar power from the Illikwa Solar PV Facility in the Free State and supply its Sandton headquarters.

The application states: “Investec Bank hereby notifies that a licence application has been lodged with NERSA to trade electricity.” The proposed trading would occur via Eskom’s transmission networks under a wheeling arrangement – where electricity is transported through third-party infrastructure.

Solar-Powered Banking Operations

Investec plans to buy energy from the 2022-registered Illikwa PV Facility under a Generation Purchase Power Agreement (GPPA).

The solar farm near Parys will feed clean energy into the grid, which Investec will then offtake for its Grayston Drive offices in Sandton.

The bank clarified its understanding of wheeling as: “the exchange of electrical energy via a network not owned by either party, dealing with the financial flow of electricity.” This model allows corporate buyers to source renewable energy without direct grid connections.

Expanding SA’s Private Energy Market

The application reveals Investec’s broader ambition to become an electricity trader, purchasing from multiple generators and selling to various customers through Corporate Power Purchase Agreements (CPPAs). This aligns with South Africa’s push to liberalize its energy market amid Eskom’s challenges.

Investec emphasised its commitment to B-BBEE compliance in its energy trading venture. The move positions the financial institution as an early corporate entrant into South Africa’s evolving electricity trading space.

NERSA’s decision on the licence application could set a precedent for other financial services firms seeking to participate in SA’s energy transition. The regulator hasn’t indicated a timeline for its review process.