Waiting for perfection: The real risk in renewable energy decisions
Discovery Green
When it comes to renewable energy, many businesses get stuck waiting for the "perfect" solution. But in the country's rapidly maturing energy landscape, waiting is often the biggest risk.
Procuring renewable energy is complex. Contracts can be daunting. The rules keep shifting. Technology is constantly advancing. But the businesses that have forged ahead and transitioned to renewable energy have already secured clean, price-certain energy, locked in grid capacity, and positioned themselves against above-inflation Eskom electricity price hikes and looming carbon taxes.
The businesses that are still holding out, waiting for the "perfect solution", risk being left behind, paying more for Eskom electricity each year, competing for limited renewable energy capacity, and risking their profitability in a global low-carbon market.
With South Africa projected to generate approximately 20.06 billion kWh of electricity from renewable sources in 2025, an amount which is expected to grow at an annual growth rate of over 5% through to 2029 - the window of opportunity is open, but it won't stay that way forever.
Paying the price for doing nothing
Making a good decision now, even if it's not perfect, is far better than holding out for a perceived flawless solution to transition to renewable energy later. Here's how indecision will cost your business in the long run:
- Limited grid access
For starters, grid capacity is limited and disappearing fast. Early movers are already snapping up the best geographic locations for renewable energy generation, which are rich in wind and sun resources. Businesses that delay may be forced to settle for second-best sites, which translates to project delays, higher costs and lost savings.
- Price security
Eskom prices have risen more than inflation for the past decade, and that trend is set to continue. By securing long-term renewable energy wheeling contracts now, businesses can lock in more predictable pricing for the next 20 years. Every month businesses spend waiting is a missed opportunity to hedge against future electricity price increases.
- Looming carbon taxes
It's not just electricity prices that are rising. The introduction of local and international carbon taxes adds further financial pressure. By 2031, as carbon taxes increase in South Africa and current tax allowances are gradually phased out, there is expected to be a pass-through price impact on electricity that does not come from renewable sources. Over time, carbon taxes could comfortably increase electricity generation costs by more than 20%
And from early 2026, businesses exporting to Europe will also be required to pay the price differential between our lighter carbon tax regime and Europe's under the Carbon Border Adjustment Mechanism (CBAM) - where the price of carbon is approximately six times higher.
Acting now to reduce your carbon footprint through renewable energy isn't just about local compliance, it's a strategic move to stay competitive in international markets.
- Reputation risk
Sustainability has become a business imperative and companies that delay transitioning to renewable energy risk falling behind in ESG ratings, procurement mandates, and stakeholder expectations. First movers, on the other hand, position themselves as leaders and innovators.
How to break out of perfection paralysis
Instead of chasing perfection, focus on making well-informed, strategic choices for your renewable energy transition. A good decision today is worth more than a perfect one made too late - it's key to shift the mindset from "perfect or nothing" to "good and timely".
Take these steps to make confident, timely energy decisions:
- Set a clear decision timeline. Avoid open-ended discussions that keep you from moving forward and have a clear timeframe in place. For example, the Discovery Group set a goal to be carbon neutral by 2030, and in looking for a solution, saw an opportunity to create the Discovery Green platform to simplify renewable energy procurement.
- Bring in the experts and experienced partners who understand the regulatory, financial and technical landscape to help you structure the right deal for your business.
- Focus on progress, not perfection. The energy market is continually evolving. But every year of delay leaves savings, incentives, and competitive advantage on the table.
Contrary to what some might think, sitting on the fence doesn't reduce risk - it increases it. The longer you wait, the more you open yourself up to financial losses and damage to your reputation.
The Discovery Green edge
At Discovery Green, we get that renewable energy procurement can be complex, especially in the South African context. That's why our platform is designed to help businesses make informed decisions quickly, without compromise or regret. With our expertise and support, businesses can confidently navigate the transition to renewable energy with a suite of products to meet your unique business needs and budget.
The bottom line is that the cost of doing nothing far outweighs the cost of making a good, timely decision. Businesses that overcome perfection paralysis won't just secure their energy futures - they'll also position themselves as pioneers in the global shift toward sustainability. There's never been a better time to act decisively and seize the opportunities that renewable energy offers.