As private electricity wheeling gains momentum in South Africa’s energy transition, industry focus is increasingly shifting from deal announcements to what happens after contracts are signed. While private wheeling power purchase agreements (PPAs) are widely promoted as a solution for C&I and mining customers seeking energy security, the practical realities between signature and first power delivery remain less well understood.
According to Bronwyn Timm, Business Development Manager at SOLA Group, off-takers and developers are now far enough along in project execution to reflect on timelines, costs and operational challenges that emerge once projects move beyond planning.
From Timm's perspective, the transition from development to execution marks the most resource-intensive phase of a project. Timm said activity peaks as projects approach financial close, requiring simultaneous management of complex commercial and legal frameworks – including PPAs, EPC contracts and O&M agreements – alongside fundraising, technical design revisions and detailed due diligence.
“The execution phase demands constant co-ordination across national, provincial and local authorities,” the Timm told Energize, noting that regulatory navigation and multi-stakeholder management remain key challenges.
Grid studies remain one of the most significant sources of uncertainty. Based on Timm's experience, timelines for grid approval processes have historically been lengthy and unpredictable, with recent Budget Quotation (BQ) processes taking more than two years to complete. Timm attributed extended timelines partly to the transition toward the Interim Grid Capacity Allocation (IGCA) queuing system, which introduced earlier and more stringent readiness requirements.
Study outcomes also frequently differ from early expectations. Timm explained that detailed network assessments often reveal constraints not visible during preliminary evaluations, requiring adjustments to project scope and design. However, Timm indicated that early signs of process improvements may reduce timelines to under 12 months as systems mature.
Grid constraints continue to shape project design, with installations often sized according to available network capacity rather than customer demand. In saturated regions, the need for infrastructure upgrades can significantly delay delivery timelines.
Commercial expectations present another challenge. Timm noted that foreign exchange volatility and fluctuating equipment costs are commonly underestimated during early negotiations, particularly where aggressive pricing assumptions are made.
“A willing buyer and willing seller can agree upfront mechanisms to manage cost fluctuations,” the Timm said, adding that clear adjustment structures can help maintain viable tariffs despite market shifts.
Across multiple projects, Eskom’s grid connection processes were identified as the single largest source of delay between PPA signature and first energy flow. Tim explained that the Group has responded to this challenge by engaging directly with Eskom teams and investing in internal grid expertise to improve project readiness.
As private wheeling continues to expand, SOLA Group’s experience suggests that while the model remains viable, successful delivery depends on realistic timelines, early technical preparation and close co-ordination with grid authorities.
