Major bank taking on Eskom in South Africa
Investec has become one of the first major banks in South Africa to enter the electricity market after the National Energy Regulator of South Africa (Nersa) granted it a trading licence.
The licence allows the bank to source its own power from renewable projects and trade electricity over Eskom’s transmission and distribution networks.
This marks a significant shift in how businesses and companies deal with the country’s fragile power system.
Mpho Modise, head of renewable energy trading at Investec, described the approval as more than just regulatory paperwork.
“For us, this licence is not just about energy. It’s about enabling strategic advantage, resilience, and long-term value.”
Investec said the 20-year licence would enable the bank to broaden its energy solution portfolio, providing energy users with flexible, capital-free access to clean and renewable power.
The bank will focus on providing clients with tailored solutions to address rising prices and sustainability goals while improving financial performance and operational resilience.
The group plans to begin by supplying its Johannesburg headquarters with solar energy. In its licence application, Investec said it would buy power from the Ilikwa Solar PV facility.
This is a 50MW plant under construction near Parys in the Free State, and the bank will wheel the electricity to its offices at 100 Grayston Drive in Sandton.
Construction is underway, and the facility is expected to reach commercial operation in early 2026.
For Investec, the project is not just about energy security but also about entering a new market.
The bank is providing preconstruction finance along with debt and equity funding for the plant, and its newly acquired licence will enable it to act as a trader between independent power producers and energy users.
Modise said the first procurement project is expected to go live in the second quarter of 2026, and from there the group will broaden its offerings.
“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,” she explained.
“At the same time, the licence positions the company as a credible partner for independent power producers, facilitating funding, offtake and wheeling partnerships.”
Big shift in the energy market
Energy expert Ruse Moleshe added that the development underlines how South Africa’s energy market is changing and attracting new types of participants.
“Investec, last time I checked, was a bank. Traditional financial institutions are now stepping into electricity trading,” he said.
“This is part of a wider shift, with companies outside the traditional power sector entering the space.”
He pointed to Vodacom as another example, noting how the mobile operator recently launched a virtual wheeling platform.
“Vodacom has now created a virtual wheeling platform so people can generate electricity or buy electricity in Musina and use it in Cape Town. They’re a cellphone network, and some people might ask why they’re getting involved in electricity trading.”
According to Moleshe, the answer lies in technology and how energy markets are evolving. “This is all about how sophisticated you can be because these are all happening in terms of an electronic framework,” he said.
“You are not really building infrastructure as Vodacom, but you understand networks and you understand the internet of things, if I can put it that way.”
The same logic applies to Investec. “In that sense, you then don’t have to be an independent power producer,” he added.
“You could be getting this from people who have the capacity to develop it, and all you do is to have those transactions with them to sell to you.”
Moleshe believes that banks and telecoms are well-placed to use their financial systems and digital platforms to enter energy trading.
“That portfolio you’d be able to combine together, probably as a price taker, you’d be able to get a reasonable price and then be able to compete in the market in that way,” he said.
For Eskom, which is already struggling with financial strain and municipal debt, the rise of private players like Investec represents a profound shift.
Companies are no longer willing to rely solely on state utilities for energy security. As more renewable projects come online next year, South Africa could see the beginning of a more competitive and diversified power market.
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