Just over a year since the Electricity Regulation Amendment Act ERAA came into effect, South Africas energy market is visibly changing. The Act has opened the door for independent power producers IPPs to supply electricity directly to customers through power purchase agreements PPAs and the results are already reshaping how the country generates and consumes power, says John Taylor , Head of M A and C I at Yellow Door Energy South Africa.
Globally, renewable energy has surpassed coal generation for the first time, according to Embers Mid- Year Electricity Insights 2025. While South Africa still relies heavily on coal, the trajectory is clear. Solar generation has grown from 1,1 in 2015 to nearly 7 in 2023 and continues to rise as more companies secure private-sector supply through PPAs.
These agreements allow businesses to lock in stable electricity prices and reduce exposure to load shedding and cost volatility without investing their own capital in generation assets. For IPPs, PPAs create long-term revenue certainty that enables new renewable projects to be financed and built.