South Africa is on track for its biggest year of private power investment ever.
However, the most important story is not how much money is being invested, but what that investment is proving: South Africa can still deliver complex infrastructure at scale.
Utility-scale projects and Commercial & Industrial installations have elevated the 2026 projections to a record of just over 5 GW in financial closures across various projects. Based on industry benchmarks and capital expenditure for South African utility-scale projects, that pipeline is estimated to be worth between R90 billion and R110 billion.
More importantly, this capital is being deployed.
The renewable energy sector is becoming a case study for construction excellence, demonstrating that with the right partnerships, disciplined project management and an enabling regulatory framework, infrastructure can be delivered at scale and on time.
Infrastructure: excellence in practice
One of the clearest indicators of this capability is the scale at which projects are currently being executed. For example, at Mulilo's Du Plessis Dam Solar PV2 project, nearly 170,000 photovoltaic modules have been installed on a single site on time and on budget, representing a major logistical, engineering and project management achievement.
Delivering this milestone required complex supply chains from manufacturing facilities in Asia to a site outside De Aar in the Northern Cape, supported by a skilled workforce, precise execution and disciplined project management.
Du Plessis Dam Solar PV2, a 105 MWdc facility that will provide clean energy to industrial offtakers, is being delivered by predominantly South African teams. It demonstrates the depth of local engineering, construction and project management capability now available to execute complex infrastructure at scale.
Transmission is key
The same principle extends beyond generation infrastructure.
The recent energisation of the Kestrel Main Transmission Substation (MTS) in De Aar, Northern Cape, signifies its evolution from a construction site to a fully operational transmission asset.
At Kestrel, an entirely new 400/132 kV Main Transmission Substation has been built from the ground up as a self-build project.
Once handed over to the National Transmission Company South Africa (NTCSA), the facility will serve, for now, four renewable energy projects totalling just over 500 MW.
Achieving this milestone demonstrates what can be accomplished when public and private sector capabilities are aligned in executing and delivering complex grid infrastructure to Eskom's exacting standards, on time, within budget, and in support of South Africa’s infrastructure ambitions.
This is especially important given that transmission capacity remains one of the most significant constraints facing South Africa's energy transition.
Built on resilience, not luck
Renewable energy projects are not delivered without obstacles. The sector has had to navigate global supply chain disruptions, skills shortages, shipping constraints and cost pressures.
The lesson is that resilience must be built in from the outset.
This means securing long-lead equipment early, as Mulilo did by purchasing and bringing its 500 MVA transformer to site months before it was needed; structuring contracts to manage risk; incorporating realistic schedule contingencies; investing in local workforce development; and maintaining transparent relationships with contractors, lenders and other stakeholders.
Infrastructure succeeds when partnerships work
Equally important is collaboration. No organisation delivers infrastructure of this scale alone. Large projects depend on effective partnerships between developers, engineers, contractors, lenders, government institutions and local communities.
Kestrel MTS is the product of a deeply collaborative delivery model, bringing together Eskom and NTCSA on grid integration, leading engineering and construction partners including Zutari and H&I, contractors across the associated wind and solar facilities, as well as lenders, equity investors and community engagement partners.
When developers understand risk, contractors deliver quality work, financiers support long-term investment, government provides regulatory certainty and communities share in economic benefits, projects move from concept to reality.
Each project restores confidence in the construction sector
The impact extends far beyond the energy sector itself. Renewable energy projects are helping South African construction firms build world-class delivery records. The capabilities developed through these projects, including precision engineering, strict safety management and complex programme execution, are directly transferable to other critical sectors such as water, transport, ports and broader infrastructure development.
Every completed project becomes another proof point that South Africa's construction sector can deliver complex infrastructure, challenging the perception that infrastructure delivery in the country is inherently unreliable or excessively risky.
Investor confidence is built on evidence. Every energisation milestone, commercial operation date and successful performance test provides another proof point that reduces perceived risk and supports future investment decisions.
Mulilo's own evolution reflects this shift.
The company has grown from a project developer with minority stakes into a fully integrated independent power producer, with its expanding construction capability proving the strength and scalability of its end-to-end operating model.
Mulilo's majority shareholder, Copenhagen Infrastructure Partners, is the world's largest dedicated renewable energy fund and invested in South Africa because it saw a market where projects could be delivered reliably.
With 2026 shaping up to be a record year for private power investment, successful execution is already translating into capital flows. Investors follow performance; successful delivery creates confidence, and confidence attracts investment.
A blueprint for the next generation of infrastructure
Perhaps the most important lesson from renewable energy is that its success offers a template for broader infrastructure delivery.
The REIPPPP model has shown how competitive procurement processes, bankable offtake agreements and clear regulatory frameworks can attract significant private sector investment. The principles underpinning this model could be adapted for water, transport and digital infrastructure.
The renewable energy industry has also demonstrated that local industrialisation, skills transfer and job creation can be achieved within a market-driven environment. At the same time, disciplined governance, lender oversight and milestone-based accountability have shown that strong controls do not slow delivery. They help enable it.
Renewable energy is often viewed through the lens of energy security and sustainability, but its broader contribution may prove just as significant. It is demonstrating that South Africa can still plan, finance, construct and operate complex infrastructure at world-class standards.
Danie Möller, Chief EPC Officer at Mulilo.
**The views expressed do not necessarily reflect the views of the National Media Group.