Grid Africa has received an equity investment of R50 million ($2.8 million) from Rifuwo Energy Partners. This funding aims to boost the development of renewable energy projects in South Africa. The investment comes as the country faces soaring electricity prices and ongoing power supply challenges.
South Africa’s electricity crisis has deepened, with Eskom planning tariff increases of up to 43.55% by mid-2025. In April 2024, the utility company implemented a 13% electricity price hike. Grid Africa is working to provide solar energy solutions to counter these rising costs.
Norman Moyo, CEO of Grid Africa, highlighted the urgency of the situation. He said, “Recent changes in energy security in South Africa present a unique opportunity for businesses to deploy more solar energy projects, providing a buffer against escalating energy prices.”
Grid Africa plans to leverage falling solar technology and lithium battery costs. The company intends to improve energy efficiency and offer peak shaving to help clients avoid peak charges from the electrical grid.
Also Read: South Africa Commits R112 Billion to Boost Renewable Energy Grid
Expansion and Commitment to Renewable Energy
Founded in 2015, Grid Africa focuses on advancing renewable energy adoption across Africa. The company has successfully developed and maintained hybrid energy projects in Zimbabwe, Kenya, and Ivory Coast. This shows its capacity to operate in tough environments.
Recently, the company expanded its operations into Zambia, which has been plagued by frequent load shedding. This expansion underscores Grid Africa’s dedication to providing reliable energy solutions in the region.
In response to South Africa’s energy crisis, other companies have also stepped up efforts to improve renewable energy infrastructure.
In October 2024, the National Transmission Company South Africa (NTCSA) committed R112 billion ($6.3 billion) to revamp the national transmission grid.
This investment is part of the Transmission Development Programme (TDP). It aims to add 30,000 MW of renewable energy capacity by 2029.
Terra Firma, a South African renewable energy firm, announced a R1.3 billion ($73.8 million) solar project to help alleviate electricity costs. The project will deliver 110 MW of solar energy and utilize Eskom’s grid through “energy wheeling.”
Hohm Energy, a climate startup, raised $8 million in seed funding to promote rooftop solar adoption in South Africa. Their mission is to help individuals and businesses transition to solar energy.
As energy costs rise, South African businesses and startups are taking bold steps to accelerate the adoption of renewable energy solutions. Grid Africa’s new investment will help advance solar energy and reduce dependence on the national grid, contributing to a sustainable future for the country.