Investec has received an energy trading licence from the National Energy Regulator of South Africa (Nersa), positioning the bank to introduce specialized energy products and supply its headquarters with privately sourced power. This development follows Investec’s announcement in May 2025 regarding its intention to apply for the licence, with public hearings conducted by Nersa in August to gather stakeholder input.
The bank views this milestone as a significant step towards the liberalisation and transformation of South Africa’s energy sector. Investec stated, “Recent regulatory changes have opened South Africa’s energy sector to new entrants and innovations,” highlighting energy trading as essential for transitioning to clean and reliable power.
Mpho Modise, Investec’s head of renewable energy trading, noted that the licence would provide a competitive advantage for the bank’s clients, focusing on innovative and cost-effective solutions that promote renewable energy adoption. The 20-year licence allows Investec to expand its energy solution offerings, giving users flexible, capital-free access to clean power.
Investec plans to address rising energy prices and sustainability goals while enhancing financial performance and operational resilience. The bank aims to attract renewable energy providers by creating a comprehensive platform for funding, hedging, and offtake opportunities.
The first power procurement project for Investec will involve purchasing electricity from the 50MW Ilikwa Solar PV facility in the Free State, expected to come online in the second quarter of 2026. This agreement will enable Ilikwa to supply power to Investec’s headquarters in Sandton, utilizing Eskom’s transmission and distribution grids.
However, the future of Investec’s trading licence remains uncertain, as Eskom has previously challenged Nersa in court over the awarding of trading licences. Eskom argues that these licences represent a radical policy shift that could disrupt the electricity market by allowing private firms to attract valuable customers with lower tariffs.
Critics, including business groups and energy expert Chris Yelland, have condemned Eskom’s stance, asserting that the licences were awarded following due process and public consultation. Yelland described Eskom’s concerns as “dangerously disingenuous,” suggesting the utility struggles to compete with private companies due to inefficiencies and high operational costs.
Electricity and Energy Minister Kgosientsho Ramokgopa has urged Eskom to withdraw its challenge, advocating for a collaborative regulatory process without legal hindrances. In response to the evolving market landscape, Nersa has expedited the development of trading rules, shortening the process from one year to potentially three months.