As South Africa stands on the threshold of a transformative energy future, SOLA Group proudly participated in a pivotal EE Business Intelligence webinar – “Preparing for the Implementation of the South African Wholesale Electricity Market (SAWEM)”, held on 9 September 2025. In our capacity as a forward-looking developer and IPP (Independent Power Producer), we joined peers and experts to explore what SAWEM means for the energy ecosystem – and how we’re uniquely positioned to lead the way.

Webinar Highlights: A Panel of Six Industry Leaders

Keith Bowen (Eskom NTCSA) – Opening Keynote
Keith Bowen, a seasoned power systems economist and Eskom Transmission’s Senior Manager for Market Operator, set the stage with an overview of South Africa’s power market reform. He emphasised that while the competitive electricity market is already emerging through bilateral contracts and wheeling, the formal launch of SAWEM requires key regulatory, technical, and system readiness milestones. He noted progress on the market operator license, market code workshops, and tariff structures, but warned that timelines remain tight and regulator capacity is under strain. Training through the market school and greater transparency were highlighted as crucial to ensure readiness, even if a phased or partial launch occurs.

Bronwyn Timm (SOLA Group) – Developer / IPP Perspective
As the Business Development Manager at SOLA drawing from over two decades in business development and strategy, she outlined what SAWEM means for Independent Power Producers (IPPs), stressing that generators will have to become Balance Responsible Parties (BRPs), with obligations for accurate day-ahead forecasting, collateral posting, and settlement processes. She noted opportunities for IPPs to become active market participants, including trading flexible products like battery storage, but cautioned that participation brings risks such as price exposure and compliance requirements. Her key message was that developers must urgently build internal forecasting, trading, and risk management capabilities to thrive in the new market.

Olga Suchkova (Cresco) – Advisory for Energy Intense Users
Olga Suchkova, Associate Director at Cresco with more than 15 years experience across power, mining, petrochemical, and energy mix modelling, brought an incisive view of SAWEM through the lens of strategic and financial advisory. She highlighted the significant implications of tariff restructuring and wholesale price-setting mechanisms for large energy-intensive users, particularly in mining and industry. She explained how tariff unbundling, shifts in fixed versus variable costs, and evolving capacity charges will directly impact financial planning. She also warned that while coal and OCGTs (Open Cycle Gas Turbines) are likely to continue setting marginal prices in the near term, greater renewable penetration will create opportunities for flexibility services like battery storage. Her central takeaway was that users must adapt strategies now, as tariff reforms and SAWEM’s transparent pricing will reshape cost structures and competitiveness.

Andrew Taylor (NOA Group) – Trading Landscape and Commercial Strategy
Andrew Taylor, Head of Trading and co-founder of NOA Group who has a strong background in energy law and regulatory compliance, shared how NOA is shaping trading strategies to maximise value under evolving frameworks. He positioned traders as essential intermediaries who aggregate multiple generation sources and manage risks on behalf of customers, helping them navigate the complexities of SAWEM. He explained that traders provide portfolio diversity, improved reliability, and price smoothing, but must also deal with challenges like municipal wheeling restrictions, which exclude nearly half of potential market participants. He stressed that SAWEM is a pivotal reform to unlock innovation, efficiency, and competitive pricing, but cautioned that without regulatory clarity and inclusivity, large parts of the market could be left behind.

Jason van der Poel (Webber Wentzel) – Legal and Financial Structuring
Jason van der Poel, with deep expertise in project finance, IPP procurements, and contractual frameworks, offered a sharp account of what developers and financiers must prepare for. He focused on the regulatory and legal frameworks underpinning SAWEM, emphasising the need for contractual clarity, robust market codes, and mechanisms that enforce BRP obligations for larger IPPs. He warned of legal risks, such as changes in law affecting existing PPAs and bilateral agreements, and highlighted gaps in municipal regulation that could stall reform. His key message was that legal certainty and alignment across codes, tariffs, and contracts are essential to de-risk the market and give confidence to both investors and participants.

Hans-Arild Bredesen (Bredesen Consulting) – Market Design and Implementation
In wrapping up the session, Hans-Arild Bredesen delivered invaluable insights from his 25-plus years in power market design. Hans stressed that while SAWEM is complex and readiness will never be perfect, South Africa must not delay further as success is critical. He noted that the reform process has been unusually transparent and consultative, which provides a strong foundation. His closing message was that the market should launch in stages (“start in the shallow end of the pool”), building confidence and functionality over time, rather than waiting for flawless conditions that may never come.

Key Takeaways: What Every Developer and IPP Should Know

1. Market Readiness is Risk-Management
   SAWEM will reward participants who are accurate in forecasting, disciplined in metering/reporting, and nimble in dispatch. Ignoring these elements is not an option – it’s a liability.
2. Flexibility is Strategic Advantage
   Whether through virtual wheeling, demand response options, or new PPA models, developers who offer adaptable solutions can unlock value, even for SMEs.
3. Legal and Financial Rigor Are Non-Negotiable
   PPA frameworks and financing must conform to dynamic regulatory structures and evolving trading rules. Aligning with these early is a competitive edge.
4. Market Design Matters
   Clear, transparent, regionally balanced market rules (as advocated by Bredesen) are fundamental to enabling efficient trading and protecting participant interests.
5. Advisory and Trading Partnerships Are Vital
   Navigating SAWEM demands expertise from financial modelling to legal structuring to portfolio trading. Collaborative, specialized advisors are essential allies.

Why SOLA Is Uniquely Positioned for SAWEM

Virtual Wheeling
At SOLA, we’ve built a track record of delivering wheeling contracts, bringing solar power flexibly from farms to corporate offtakers. This places us at the leading edge of SAWEM participation models.

First Signatory of a Flexible PPA in South Africa
Our early adoption of shorter and adaptive PPA structures isn’t just pioneering – it’s a proof point. We understand how to craft contracts that align with liberalised pricing and wholesale market dynamics.

Operational Expertise and Strategic Vision
From development to stakeholder management and negotiation, our internal systems and teams are aligned with the SAWEM paradigm – anticipating reporting standards, forecasting needs, and dispatch flexibility.

Aligned with Regulatory Evolution
Engaging with thought leaders, including those who shaped Nord Pool market mechanisms, SOLA remains closely connected with global best practices, ensuring our readiness for SAWEM’s debut.

Join Us on the Journey

The launch of SAWEM in early 2026 marks a critical moment in South Africa’s energy transformation. With expertise in virtual wheeling, flexible PPA frameworks, and developer readiness, SOLA Group is proud to be at the forefront.

If you’re an energy-intensive user or corporate buyer looking to decarbonise and save money while doing so – we can make the transition easier for you! Contact us at info@solagroup.co.za to explore renewable energy offerings for your business.

Reach out – let’s power the future together.