South Africa’s data centres and mines are some of the country’s largest and most energy-intensive businesses. For both sectors, power reliability, cost predictability and decarbonisation are now boardroom priorities – and renewables delivered via wheeling are proving to be a practical, cost-effective route to meet those priorities.

Energy Challenges: The Context

South Africa remains heavily dependent on coal, and the national grid has experienced persistent reliability challenges in recent years. At the same time, corporate appetite for cleaner power is growing, driven by operational risk, rising diesel backup costs, investor and customer climate expectations, and the economics of new renewables versus grid tariffs. The International Energy Agency notes coal still dominates South Africa’s capacity while renewables’ share is rising – a context that makes off-site renewables appealing for big users.

Why data centres and mines are ideal candidates for renewables (and battery storage)

South Africa’s data centres operate under intense energy demands, running high-load IT infrastructure 24/7 while needing to control costs and meet growing sustainability commitments. Similarly, mining operations are among the country’s most energy-intensive businesses, with continuous, high-load processes that make electricity costs a major operational expense. By combining solar PPAs with large battery energy storage systems (BESS) for peak shaving, data centres and mines can reduce reliance on expensive electricity during high-tariff periods, improve operational cost predictability, and significantly cut their carbon footprint.

Both industries share three energy needs that renewables + storage solve well:

1. High, steady demand: Data centres run round-the-clock IT loads; mines operate continuous shifts with heavy process loads. That scale makes PPAs (power purchase agreements) sensible and economical. In South Africa, major data centre operators have already signed PPAs to secure solar generation for their campuses – demonstrating this model works locally. SOLA pioneered the first wheeling agreement in SA for the telecommunications entity Amazon Web Services, with a 12MW PPA serving their operations in Cape Town.
2. Reliability and resilience: By storing solar energy generated during the day, large battery energy storage systems (BESS) allows businesses to subsidise their own peak usage with this stored, cheaper, and clean power, rather than drawing expensive electricity from the grid during high-tariff periods or relying solely on the grid during outages.
3. Cost predictability and emissions reduction: Long-term PPAs lock in predictable energy costs and help companies meet emissions targets without capital outlay or on-site construction. For many large consumers, wheeled renewable energy can be much cheaper than volatile Eskom tariffs or diesel alternatives.

What is wheeling – and how is virtual wheeling different?

Wheeling enables electricity produced at a renewable generator to be delivered over transmission/distribution networks to a third-party buyer at a different location. It’s the practical bridge between large, utility-scale solar farms and city-based consumers who can’t host large generation on site.

Virtual wheeling (newly rolled out by Eskom) extends that capability further: it allows entities to benefit from renewable energy supply without a physical one-to-one connection between the generation facility and the site. This is a major step forward for businesses on municipal networks who previously had limited access to off-site renewables. This product is live and available for eligible buyers in South Africa.

(Important: SOLA supplies renewable energy to businesses via wheeling – including virtual wheeling where available – not by installing panels on a buyer’s roof.)

Case study: Wheeling to mining operations (real South African example)

SOLA has structured wheeling projects through long-term power purchase agreements with Mineral Sands mining group Tronox Holdings PLC, that supply multiple mining operations from utility-scale generation. The SOLA Group provides 200 MW of solar power to Tronox’s mines and smelters in South Africa. These projects were structured to deliver roughly 540 GWh of solar energy, illustrating how wheeling enables bulk renewable delivery to heavy industrial users without on-site generation.

What that looks like in practice for a mine:

• A solar farm (possibly paired with a large battery energy storage system) produces generation in a high-sun province.
• Energy is wheeled across the grid under PPA terms, replacing a portion of grid supply or diesel generation.
• The mine benefits from lower, more predictable power costs, fewer diesel starts, and verified carbon reductions – all without owning generation assets or taking construction risk.

Practical benefits you can expect (data-centre and mining focused)

• Lower operating fuel costs – less diesel for backup and reduced exposure to volatile grid tariffs.
• Simplified decarbonisation – PPAs and wheeled energy provide verifiable renewable consumption for ESG reporting.
• Fast adoption path – wheeling means no rooftop panels or plant installation at the customer site; the generator handles build and operations.

Where storage fits in

Large battery energy storage systems are increasingly paired with utility-scale solar in South Africa to deliver dispatchable, predictable power. Recent national procurement has accelerated BESS capacity additions – a trend that’s making renewable + storage an attractive, commercial alternative to traditional baseload plus diesel backup for industrial users.

Common questions answered

Q: “Will a renewable energy PPA work for my business if I’m municipally connected?”
A: Yes – virtual wheeling and municipal wheeling guidelines make it possible in many cases; your eligibility depends on network rules and contractual terms. SOLA’s team navigates those arrangements for buyers.

Q: “Are high upfront capex costs required?”
A: No. Under standard wheeling PPAs you pay only for energy supplied – SOLA builds and operates the generation and storage assets.

Q: “Will battery storage cover my business’s night-time loads?”
A: That depends on the PPA and the size of the BESS. Many buyers use storage to shift daytime solar to evening peaks and to provide short-duration ride-through protection; larger capacity BESS can cover longer periods if contracted.

Ready to make the switch to save money and decarbonise?

South African data centres and mines are already using PPAs, wheeling and battery storage to reduce cost, boost resilience and meet ESG targets.

If your business is curious about switching without installing a single panel (and wants a solution that works with Eskom and municipal networks) SOLA can help.

Visit our Buy Energy page to register your interest and explore solutions.