The National Energy Regulator of South Africa (Nersa) has granted Investec an energy trading licence, a pivotal development that enables the bank to roll out new specialized energy products and supply its Sandton headquarters with privately sourced power. Investec applied for the licence in May 2025, with Nersa holding public hearings in August before approval.
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Investec hailed the decision as a significant milestone in the liberalization and transformation of South Africa’s energy sector. The bank stated that energy trading is now recognized as a critical enabler for the country’s shift toward clean, reliable power.
The 20-year licence will allow Investec to greatly expand its energy solution portfolio. The bank will focus on providing clients with flexible, capital-free access to clean and renewable power, helping them meet rising costs and achieve sustainability goals.
“This licence is not just about energy — it’s about enabling strategic advantage, resilience, and long-term value,” said Mpho Modise, Investec’s head of renewable energy trading.
Furthermore, the licence positions Investec as a credible, one-stop shop for Independent Power Producers (IPPs), offering a seamless process for funding, hedging, and power offtake. The bank’s first power procurement project will be securing electricity for its Sandton offices from the 50 MW Ilikwa Solar PV facility in the Free State, which is expected to come online in the second quarter of 2026. This power will be moved across the country using Eskom’s transmission and distribution grids, a process known as “wheeling.”
Despite the successful awarding of the licence, its future remains shadowed by a legal challenge from Eskom. The state power utility is currently taking Nersa to court over five previously awarded trading licences, arguing they represent a “radical and unconsulted ‘new policy'” that will “upend the entire landscape.”
Eskom is primarily concerned that these private trading licences will allow companies to “cherry-pick” its most lucrative customers, luring them away with cheaper tariffs. It also argues that Nersa cannot award licences while formal electricity trading rules are still under development.
Energy experts and business groups have heavily criticized Eskom’s stance, with analyst Chris Yelland labelling the arguments as “dangerously disingenuous.” Experts contend that Eskom is struggling to compete on price due to its high losses and operational inefficiencies. Electricity and Energy Minister Kgosientsho Ramokgopa has publicly urged Eskom to withdraw its challenge to allow the necessary participatory regulatory process to proceed. Nersa has, in response, accelerated the development of the formal trading rules, aiming to finalize the process much faster than initially planned.
