South African tycoon Adrian Gore’s Discovery ventures into renewables

South African insurer Discovery Ltd., which is led by Adrian Gore, unveiled a renewable power trading platform on Wednesday, aiming to tap into the burgeoning market driven by businesses seeking solar and wind energy solutions to sustain their operations amid an ongoing power crisis.

South Africa has experienced a surge in the adoption of renewable energy sources as the state utility Eskom grapples with the need to implement record daily power cuts in 2023 to prevent a complete grid collapse. However, not all businesses, such as fitness centers, community shopping malls, small hotels, and lodges, can afford the initial capital investment required for renewable power plants, often resorting to costly diesel generators.

In addition to the demand for uninterrupted power supply, these businesses face mounting pressure from shareholders and activists to reduce carbon emissions by transitioning from coal-powered plants to renewable alternatives.

Gore, CEO of Discovery, outlined the company’s renewable platform, known as Discovery Green, which aims to serve as an intermediary between buyers and sellers, catering to the needs of a broad spectrum of businesses in the market.

The platform, which officially launched on Wednesday, will commence supplying power to consumers starting in 2026. Discovery plans to collaborate with power developers to establish wind and solar plants based on the aggregated demand.

The company anticipates an installed capacity ranging from 400 megawatts (MW) to 1,000 MW and will offer power to consumers at varying price points, either at a premium or a discount, depending on the volume of their purchases, as explained by Andre Nepgen, head of Discovery Green.