Grid Africa has announced an equity investment of R50 million (approximately $2.8 million) from Rifuwo Energy Partners, aimed at accelerating the development of renewable energy projects in South Africa. This funding comes at a crucial time as the country grapples with escalating energy costs and an ongoing electricity crisis.
South Africa’s electricity challenges are compounded by Eskom’s recent announcement of proposed tariff increases of up to 43.55% by mid-2025, following a 13% price hike implemented in April 2024. In response, Grid Africa plans to focus on solar energy solutions to help mitigate these rising costs.
Norman Moyo, CEO of Grid Africa, noted that the evolving energy landscape in South Africa presents a unique opportunity for increased solar deployment. “With the declining costs of solar technology and lithium batteries, we aim to enhance energy efficiency and offer peak shaving services, helping clients avoid high charges during peak periods,” Moyo explained.
Founded in 2015, Grid Africa has been at the forefront of promoting renewable energy across the continent. The company’s mission is to drive sustainability through innovative solar technologies that improve energy efficiency and lower costs.
Grid Africa has successfully implemented hybrid energy projects in challenging markets such as Zimbabwe, Kenya, and Ivory Coast. Its recent expansion into Zambia—where frequent load shedding is a concern—further illustrates its commitment to delivering reliable energy solutions across the region.
The momentum for renewable energy development in South Africa is growing. In October 2024, the National Transmission Company South Africa (NTCSA) announced a substantial R112 billion ($6.3 billion) investment to revamp the national transmission grid under its Transmission Development Programme (TDP). This initiative aims to unlock the potential of wind, solar, and other green energy projects, targeting an impressive 30,000 MW of renewable energy capacity by 2029.
In parallel, Terra Firma, another South African renewable energy firm, unveiled a R1.3 billion ($73.8 million) solar project designed to address rising electricity costs. This large-scale endeavor will deliver 110 MW of solar power through a financial model known as “energy wheeling,” benefiting the commercial and industrial sectors, including manufacturing and digital infrastructure.
Additionally, Hohm Energy, a climate startup in South Africa, has recently raised $8 million in seed funding to promote rooftop solar adoption among individuals and businesses.
With these developments, South Africa is taking significant strides toward enhancing its renewable energy landscape, positioning itself for a more sustainable energy future.
