Investec has officially received an energy trading licence from the National Energy Regulator of South Africa (NERSA), a move that marks a pivotal moment in the ongoing liberalisation and transformation of South Africa’s energy sector. This new licence will allow the bank to expand its operations and offer enhanced services to its customers, supporting the shift towards a more sustainable and efficient energy landscape.
Mpho Modise, Head of Renewable Energy Trading at Investec, emphasised the significance of the licence, describing it as more than just a regulatory achievement. “This licence is not just a regulatory milestone; it’s a crucial step in unlocking competitive advantages for our clients,” Modise said. “As South Africa grapples with escalating energy costs and persistent supply challenges, we are committed to delivering innovative, cost-effective solutions that not only future-proof businesses but also accelerate the country’s transition to renewable energy.”
Expanding Access to Clean, Renewable Power
With the newly awarded licence, Investec can now broaden its energy solution offerings, giving businesses and other energy users flexible, capital-free access to clean and renewable power. The move also positions Investec as a credible partner for Independent Power Producers (IPPs), facilitating vital collaborations around funding, offtake agreements, and energy wheeling.
In its statement, Investec outlined its primary areas of focus:
Client-Centric Solutions: Providing tailored energy solutions that help businesses manage rising tariffs and achieve their sustainability goals while improving both financial performance and operational resilience.
Bespoke Service for IPPs: Attracting and supporting renewable energy providers by offering a comprehensive service package that includes funding, hedging, and offtake agreements.
The recent regulatory shifts in South Africa’s energy sector have created new opportunities for innovation and competition, especially in energy trading. This evolving environment has recognised energy trading as a crucial enabler in the transition to a more sustainable and reliable energy system.
Investec’s approach to the sector integrates advanced technology, access to energy markets, and partnerships with renewable energy producers, positioning the bank to deliver measurable, positive impact for its clients.
Investec is already taking significant steps toward this transformation. The bank’s first power procurement project is currently under construction and is expected to be operational by Q2 2026. The project involves the purchase of solar power from the Ilikwa Solar PV Facility, located in the Free State. With a generation capacity of 50 MW, the facility is being developed by Mainstream Renewable Power, and Investec holds a 30% equity stake in the project.
The energy procured from this facility will be used to power Investec’s headquarters in Sandton, further demonstrating the bank’s commitment to a greener future.
Investec first applied for the electricity trading licence in May 2025, outlining its plans to sell and supply power through the licence to its Sandton-based headquarters. With the licence now granted, Investec is well-positioned to be a key player in South Africa’s evolving energy sector, driving both the financial and environmental transformation of the country’s energy infrastructure.
Through this bold new step, Investec reaffirms its dedication to supporting South Africa’s transition to a more sustainable, renewable energy future, with an eye on the challenges and opportunities ahead.
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