How to move the energy needle without overcommitting capital

When it comes to transitioning to sustainable energy, many South African businesses are caught between ambition and affordability. Clean energy remains the end goal, but for most, capital scarcity, tariff uncertainty and operational risk make large, upfront investments difficult to justify. The real challenge is not whether to transition, but how to make meaningful progress without compromising balance sheets.

With the recent observation of International Day of Clean Energy, it’s worth reframing the conversation. The transition does not need to start with large, upfront investments. In fact, the most resilient strategies begin with quick, low-risk interventions that stabilise performance, reduce waste and unlock immediate financial value, creating the conditions for larger investments later.

Not all energy investments deliver value at the same pace

Not all energy investments deliver value at the same pace. Many executives feel pressure to leap straight to large-scale renewable solutions or major infrastructure upgrades. These remain essential, but they carry long timelines, higher risk and significant capital exposure.

A more strategic approach is to first pursue quick, low-risk efficiency improvements that reduce waste, optimise existing assets and improve billing accuracy. These interventions require limited capital and often generate returns within months.

Where companies are finding quick energy wins

Across sectors, the most consistent early gains are coming from better visibility and control over energy use. Metering, monitoring and billing accuracy are often overlooked, yet they regularly unlock substantial savings (on average 8% is saved on annual electricity costs) by identifying inefficiencies that were previously hidden. These outcomes arise simply from treating energy as an operational input to be measured and managed, rather than an administrative expense.

In healthcare, Netcare achieved a 34% reduction in energy consumption through targeted energy efficiency interventions, delivering immediate cost savings while improving operational resilience. Similar outcomes have been seen across manufacturing and logistics, where correcting poorly performing assets and eliminating billing inaccuracies has led to significant reductions in operating costs.

At Lactalis Parow, targeted upgrades to an underperforming cold-store operation improved efficiency and reduced energy loss. The redesign increased cold storage capacity by 150% while reducing refrigeration energy use by over 24%, achieved without major capital overreach. These examples demonstrate how incremental improvements can unlock substantial operational and financial value while strengthening resilience.

From static reports to continuous performance tracking

Many organisations still rely on static, retrospective energy reports that highlight yesterday’s problems (rather than today’s risks) to guide decision-making. While useful for compliance, they offer little insight into real-time performance or emerging risks.

The shift toward continuous performance tracking has changed this dynamic entirely. Access to live meter-level data, performance analytics and predictive insights enables executives to detect inefficiencies early, correct issues before they become costly, and build credible performance histories that support financing and future investment decisions.

Energy stops being a line item and begins to function as a managed operational lever.

Doing more with less through servitisation

As capital constraints intensify, servitisation models are also gaining traction. Rather than owning and financing energy infrastructure outright, companies are increasingly paying for outcomes – such as cooling, heating or energy availability – through fixed, predictable service agreements.

The R340 million Cooling-as-a-Service (CaaS) agreement with Aspen Pharmacare is a case in point. By shifting from asset ownership to guaranteed performance, Aspen modernised critical infrastructure while preserving capital and improving cost certainty. For CFOs and lenders alike, this alignment of cost, performance and balance-sheet efficiency is increasingly compelling. Servitisation does not remove responsibility; it reallocates it to specialised operators who guarantee the outcome.

Progress without overreach

The energy transition is unavoidable, but it doesn’t have to be overwhelming. Clean energy remains the destination, but resilient transitions can begin with practical quick wins that stabilise operations, reduce exposure and build internal momentum.

Scale when it’s right. And the transition will follow.

Manie de Waal, CEO of Energy Partners

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT