How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market

How new products will redefine the business of renewable energy in Africa

– By Dominic Goncalves, Advisory Partner for Energy Strategy at Cresco Project Finance

08 September 2026

Southern Africa’s first renewable energy race was fixated on developing the cheapest megawatt-hour of solar or wind. The next race will be to transform that variable electricity into differentiated products that solve specific customer needs and system problems.

Customers rarely want the uncontrolled output of an individual renewable plant – they want a solution to a specific energy problem.

In 2026 there is an emerging product development opportunity and redesigning of commercial strategy: what customers want, how those products are constructed and which companies may capture the value.

But product development does not mean attaching a new name or brochure to a conventional PPA. It means designing the physical and contractual solution backwards from the customer’s requirement.

While solar and wind made bulk renewable energy initially affordable, higher renewable energy penetration and customer sophistication have recently reduced the differentiation available from price alone. Buyers now value timing, shape, flexibility, reliability and contractual choice. The next competitive advantage lies in designing and delivering those products.

The value is shifting from delivering the cheapest MWh of renewable energy to selling firmed power. As the highest margin to be earned shifts from generating electrons to managing when and how they are delivered – this product development idea shifts from a nice-to-have marketing idea to an existential overhaul of a business model: those who are unable to provide firmed or flexible power may increasingly be competed out of business.

Companies that continue to develop an asset first and search for an offtaker later may find that they have produced unwanted electricity – during the wrong hours, at the wrong location or with the wrong risk profile. Meanwhile, the rewards will be reaped by those who are able to provide firming value: converting intermittent renewable energy into predictable delivery profiles, dispatchable output and contractually guaranteed supply.

Firming is the monetisation of variability.

Firming value needs to be designed with specific customers in mind:

A mine typically wants reliable, competitively priced baseload supply and reduced diesel dependence. A manufacturer wants a shaped profile matching its operating hours and protection from peak prices. A data centre wants high availability, measurable renewable matching and energy security. A FMCG company may want flexible procurement without being locked into one project for 20 years. A commercial or residential portfolio may in turn offer aggregated batteries, solar and controllable loads through a VPP.

In 2026 we consider that an emerging power product catalogue could cover five main product prototypes, each with multiple sub-products: shaped energy products, firmed renewable products, flexibility and ancillary services, congestion and curtailment products and demand-side products.

A physical product layer – consisting of solar, wind, hydro, BESS and flexible demand – generates, stores and time-shifts electricity. A virtual layer combines aggregation, forecasting, optimisation and market purchases to balance and shape delivery. A financial and contractual layer – consisting of PPAs, CfDs, collars, swaps and availability guarantees – allocates price and performance risk.

New business models include subscription fees, availability fees, as-a-service models, PPA premiums, tolling and profit sharing.

Some of these product concepts are viable to implement now, while others require further market development, for example, under the planned SAWEM implementation and existing SAPP markets.

However in some cases, first movers – for example in ancillary services and flexibility services – may help create those markets by translating an unmet system need into a measurable and buyable product – as such developing their first product for a willing customer.

VPPs already represent one of the clearer near-term product opportunities in South Africa, particularly for aggregating commercial, industrial and residential batteries, embedded generation and flexible demand.

Demand-side management, industrial load reduction and forecasting, and optimisation software are key opportunities to address, particularly for industrial and mining customers in Southern Africa, to reduce electricity bills and better manage their assets.

One of the largest undeveloped product opportunities may sit at the intersection of transmission congestion and curtailment. Southern Africa still lacks widely adopted commercial products that combine storage, portfolio substitution and contractual risk allocation to protect buyers and generators when otherwise-available electricity cannot be delivered.

By 2030, the competitive landscape of renewable energy companies successfully operating in Southern Africa may look quite different to 2026. Renewable energy companies of the future are unlikely to be simply project developers, IPPs or traders. There is an increasing pool of companies that are currently creating new types of products to address new types of needs, while progressive project developers, IPPs or traders embark on developing new products themselves.

In some cases there is no need to reinvent the wheel. An opportunity exists to leverage international business models and existing products available on other markets for local applications. And partnerships are key to successfully roll out these products locally.

As also reported by PV Magazine – New energy products emerge in Southern Africa’s renewables market