As private electricity wheeling gains momentum in South Africa’s energy transition, focus is increasingly shifting from deal announcements to what actually 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 meaningfully 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 notes that activity peaks as projects approach financial close, requiring simultaneous management of complex commercial and legal frameworks. This includes PPAs as well as engineering, procurement and construction contracts and operations agreements alongside fundraising, technical design revisions and detailed due diligence.
“The execution phase demands constant co-ordination across national, provincial and local authorities,” Timm told Energize. “The process requires significant regulatory navigation and multi-stakeholder management.”
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 processes taking more than two years to complete. The group attributes extended timelines in part to the introduction of the Interim Grid Capacity Allocation Rules system, which introduced earlier and more stringent readiness requirements.
Study outcomes also frequently differ from early expectations. Timm says detailed network assessments often reveal constraints not visible during preliminary evaluations, requiring adjustments to project scope.
However, the company finds early signs that processes may improve as new systems mature, potentially reducing timelines to under 12 months.
Grid constraints continue to shape project design. Tim says installations are often sized according to available network capacity rather than customer demand with saturated regions requiring infrastructure upgrades that can significantly delay delivery.
Commercial expectations present another challenge. According to Tim, foreign exchange unpredictability and fluctuating equipment costs are commonly underestimated early in negotiations.
“A willing buyer and willing seller can agree on upfront mechanisms to manage cost fluctuations,” Timm explains. “Flexible contractual structures help maintain viable tariffs despite market shifts.”
Across multiple projects, Timm has identified Eskom’s grid connection processes as the single largest source of delay between PPA signature and first energy flow. Timm says SOLA 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 and attractive, successful delivery depends on realistic timelines, early technical preparation and close co-ordination with grid authorities.
