SA registers 124 new renewable energy sites worth R20bn in 3 months
SA registers 124 new renewable energy sites worth R20bn in just three months, highlighting the growing pace of investment in South Africa’s electricity sector.
The National Energy Regulator of South Africa (Nersa) registered 124 new electricity generation facilities between April and June 2026, representing the first quarter of its 2026/27 financial year.
The projects collectively represent an estimated investment of R20.18 billion and add a combined 804MW of generation capacity.
The latest figures underline the growing role of private and distributed electricity generation as South Africa works to strengthen its power system and diversify away from an electricity supply model dominated by Eskom.
Nersa renewable energy registrations increase
The latest Nersa renewable energy figures show that solar photovoltaic (PV) technology continues to dominate new generation projects entering the electricity system.
Of the 124 facilities registered during the three-month period, 122 were solar PV projects. Only two were wind-powered facilities.
Despite making up just a small fraction of the number of new registrations, the two wind projects accounted for 568MW, or approximately 71% of the total 804MW capacity registered during the quarter.
This highlights an important distinction between the number of projects and the amount of electricity generation capacity being added.
Solar projects may be more numerous because they can be developed at different scales, including smaller commercial and distributed installations. Wind projects, meanwhile, can involve significantly larger generation capacity per facility.
The R20.18 billion estimated investment also demonstrates the scale of capital being directed towards new electricity generation.
Northern Cape leads investment
The distribution of the new facilities varied significantly between provinces.
The Western Cape, Gauteng and Limpopo recorded the highest number of newly registered generation facilities during the quarter.
However, the Northern Cape, Mpumalanga and Gauteng stood out when measured by installed generation capacity and investment value.
The Northern Cape recorded the highest investment, with approximately R11.934 billion committed to projects representing 440MW of installed capacity.
The province has become an important location for renewable energy development because of its strong solar resources and availability of land suitable for large-scale generation projects.
Its contribution could become increasingly important as South Africa seeks to expand electricity supply while reducing pressure on the existing power system.
South Africa renewable energy investment
The growth of South Africa renewable energy projects reflects a broader shift in the country’s electricity market.
The latest registrations follow years of increasing interest from businesses, investors and other electricity users seeking alternatives to relying entirely on traditional grid electricity.
Of the 124 facilities registered between April and June, 63 are connected to municipal distribution networks.
Together, these facilities represent 47MW of capacity and an estimated investment cost of about R639 million.
The remaining 61 facilities are connected to the Eskom network and account for approximately 757MW of capacity.
The source figures supplied for the Eskom-connected projects list an investment figure of R19.54 million, but this appears inconsistent with the overall R20.18 billion investment total and the scale of the projects. The figure may therefore reflect a reporting or transcription error.
Nersa estimates that the average investment cost during the first quarter was approximately R25,099 per kilowatt.
Long-term generation growth
The latest quarterly registrations form part of a much larger expansion in South Africa’s generation fleet.
Since 2018, Nersa has registered 2,619 generation facilities with a combined capacity of 20,131MW.
The estimated investment value of these facilities is approximately R409 billion.
The scale of this expansion is significant when compared with Eskom’s total nominal generation capacity, which is approximately 47,000MW.
In other words, the generation capacity registered since 2018 represents a substantial addition to the country’s overall electricity-generation pipeline.
Solar PV projects dominate new registrations
Solar PV projects remain at the centre of the country’s renewable energy expansion.
The 122 solar facilities registered during the latest quarter demonstrate how quickly photovoltaic technology is being adopted across different parts of the electricity market.
Solar PV can be deployed in utility-scale projects, commercial developments and smaller installations, giving developers and electricity users multiple ways to add generation capacity.
The technology is also particularly relevant to South Africa because of the country’s strong solar resource.
However, increasing solar generation creates new challenges for the electricity grid.
Generation from solar facilities varies throughout the day, with output rising during daylight hours and falling after sunset. This makes transmission infrastructure, flexible generation and energy storage increasingly important.
Wind energy investment remains important
Although only two wind facilities were registered during the quarter, wind energy investment accounted for most of the new generation capacity.
The two projects contributed 568MW of the total 804MW registered between April and June.
This means wind projects represented about 71% of the capacity despite accounting for only around 2% of the number of registered facilities.
The figures show why South Africa needs a diversified renewable energy mix.
Solar and wind generation have different production patterns, and combining them can help create a more balanced electricity system.
Wind development is particularly important in areas with strong wind resources, although new projects also depend on available grid connections.
Renewable energy capacity faces grid constraints
South Africa’s renewable energy expansion is taking place alongside major constraints in the electricity transmission network.
The country’s strongest wind and solar resources are often located far from major centres of electricity demand.
The Cape provinces, in particular, have experienced grid capacity constraints that could delay or restrict new renewable projects.
This means registering generation facilities is only one part of the process.
New power projects also need sufficient transmission and distribution infrastructure to deliver electricity to consumers.
Investment in the grid will therefore be critical if South Africa wants to convert its growing renewable energy pipeline into actual electricity supply.
Renewable pipeline exceeds government target
The appetite for new generation appears to extend beyond the capacity targeted in the government’s Integrated Resource Plan 2025.
The South African Renewable Energy Grid Survey 2025 found that solar, wind and battery projects totalling more than 72,242MWac could be expected by 2032.
The survey was a joint initiative involving the South African Photovoltaic Industry Association, the South African Wind Energy Association and the National Transmission Company of South Africa.
MWac refers to the maximum usable electrical power an inverter can deliver to the grid from a solar or wind installation at a given time.
The potential project pipeline is significant when compared with the Integrated Resource Plan 2025, which targets 67.5GW of additional generation capacity over the next 14 years.
The difference suggests that investor interest in renewable electricity may be moving faster than official planning targets.
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What the Nersa figures mean for South Africa
The latest registrations provide a clear indication that investment in new electricity generation remains strong.
SA registers 124 new renewable energy sites worth R20bn in one quarter, with the majority of the projects being solar PV installations.
The R20.18 billion investment estimate also points to continued confidence in the country’s renewable energy market.
However, the pace of development will ultimately depend on whether South Africa can expand its transmission and distribution infrastructure quickly enough to accommodate new generation.
The country will also need effective planning around battery storage, grid flexibility and electricity demand.
For consumers and businesses, continued investment in renewable generation could create more opportunities to access alternative electricity supplies and reduce exposure to electricity shortages.
For the broader economy, the expansion could support investment, construction activity, technical services and new opportunities across the energy value chain.
South Africa’s renewable energy transition is therefore entering an increasingly important phase.
The latest Nersa registrations show that developers are continuing to invest heavily, but the country’s ability to connect these projects to the grid will determine how much of this potential capacity can ultimately contribute to reliable electricity supply.
With 2,619 facilities registered since 2018 and billions of rand committed to new generation, the direction of South Africa’s electricity market is becoming increasingly clear: renewable energy is moving from a supplementary role towards becoming a major component of the country’s future power system.
References from mainstream media
- Engineering News – Engineering News article
- Engineering News – Engineering News article
- Engineering News – Engineering News renewable-energy pipeline report
- ITWeb – ITWeb renewable-energy projects report
- Engineering News – Engineering News wind-energy report
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