Tech watch: Small SA firms can now earn revenue from clean energy

From the newsletter

Growthpoint, a real estate company, is making it possible for small businesses in South Africa to easily earn and trade Renewable Energy Certificates (RECs), digital proofs of renewable energy use, through blockchain technology. This opportunity was previously only available to big corporations. The launch of the platform marks a change.

• Until now, Africa’s participation in the RECs market has been limited. High costs, slow manual processes and opaque trading made it accessible to only the largest-scale projects.

• This technology is expected to play a key role in securing and protecting export markets for South African companies, as they face the imminent implementation of the EU carbon tax on carbon-intensive products.

More details

• The blockchain-enabled REC will unlock certified clean energy trading for South African tenants when its e-co2 green energy initiative goes live in October 2025. It will deliver its first green electrons to 10 Sandton office buildings, with hydropower wheeled over the national grid from the Boston Hydroelectric Plan.

• Beyond the benefits cited above, the consumer can also expect significant cost savings, as automated smart contracts remove expensive intermediaries, making RECs more affordable for smaller businesses. 

• The REC market is growing at about 10% annually. South Africa alone is expanding renewable generation capacity fast, with new projects contributing significantly. Environmental Social Governance (ESG) integration has become crucial for African companies, pushing demand for credible renewable certification platforms. 

• Large corporations like Google, Meta, Amazon, and Microsoft are among the world's biggest buyers of renewable energy, primarily to power their data centres. While they have historically used conventional RECs, they are now exploring more granular, blockchain-based solutions to achieve 24/7 clean energy matching. In Africa, Vodacom recently reached 100% renewable electricity procurement, with a portion of this achieved through RECs.

• The next market could be Africa’s commercial and industrial (C&I) sector, which currently has high captive power installations. Countries like South Africa, Nigeria, Kenya, and Ghana are leading, primarily through solar installations. These C&I users could generate significant revenue by producing renewable electricity and selling RECs, effectively turning their sustainability efforts into new income streams.

• Blockchain technology in Africa’s energy sector offers transformative potential beyond just RECs. One of the most promising applications is Peer-to-Peer (P2P) energy trading, where blockchain platforms enable homeowners with solar panels to sell excess electricity directly to neighbours. It can also be integrated with IoT and smart grids for more efficient micro-grid management.

Our take

• Blockchain use in REC generation could significantly boost renewable adoption by empowering consumers to earn income through selling RECs. Its ability to accommodate small consumers democratises the market, breaking down barriers traditionally faced by individuals and small businesses.

• This development in South Africa lays the foundational framework for the digital transformation that renewable energy across Africa must embrace in the coming decade. The integration of advanced technologies such as blockchain, IoT, and AI is critical to closing the continent’s persistent energy gap.

• As the global energy market shifts to marry tech with renewables, the question is no longer whether technology has a role to play in Africa’s energy transition, but how quickly we can scale these solutions to leave no consumer behind.