Electricity

Electricity reform paper

Revise Electricity Pricing Policy

South African Wholesale Electricity Market

Eskom Generation company unbundling

Grid Capacity Allocation Rules

Eskom leadership: pathway to stabilisation

Electricity Minister Kgosientsho Ramokgopa says there are greater levels of stability at Eskom since the appointment of permanent CEO, Dan Marokane.

REIPPPP BW7

On 14 December 2023, the IPPO announced the release of the BW7 procurement round that seeks to procure 5GW of new renewables through 3.2GW of wind and 1.8GW of solar energy. The IPPO received 48 onshore wind and solar PV proposals, totalling 10,218 MW.

REIPPPP BW8

Former energy minister Gwede Mantashe said in March 2024 that the RFP for BW8 would be issued before the end of that fiscal year, which is end-February 2025.

Independent Transmission Project (ITP) funding model / Credit Guarantee Vehicle

Eskom’s Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt….

Establishing the Independent Transmission Project (ITP) procurement office

To facilitate private investments and development of transmission infrastructure, an office similar to the IPPO needs to be established. This will be known as the Independent Transmission Project Office.

Curtailment protocol

The curtailment framework was approved by Nersa in April 2025. The process began on 28 January 2024 when Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose…

Interim Grid Capacity Allocation Rules (IGCAR)

To mitigate a similar failure of BW6, Eskom released its Interim Grid Capacity Allocation Rules (IGCAR) in 2023. These were formulated in response to surging demand for grid access in a context of acute grid scarcity. Based on these rules, Eskom does not grant grid access based on “first come, first served” principles anymore but…

Removal of NTCSA upstream guarantee (‘Lazard Structure’)

Eskom has been working with financial adviser Lazard for a number of years in an attempt to bolster its balance sheet. Lazard was hired originally about six years ago to produce options for Eskom’s turnaround in a move that was seen as more than just debt restructuring. However, the advisory firm has been restricted to…

Eskom Distribution company unbundling

Distribution’s role is to service the customer through building, operating and maintaining distribution assets, while also acting in the national interest by actively partnering with the wider industry in resolving distribution industry issues and enhancing stakeholder relations.

Energy One Stop Shop

The Energy One Stop Shop (EOSS), formally launched  on 27 July 2023 by then Trade, Industry and Competition Minister Ebrahim Patel is in the ramp-up phase of a four-stage process designed to expedite the regulatory approvals needed for new projects involving self-generation and projects that will be connected to the local power grid. COMPLETED: We stopped…

Environmental permit timeline

One of the objectives of the energy action plan is to reduce red tape for environmental authorisations. These measures have now been implemented and are having an effect. COMPLETE: We will no longer track this reform.

Nersa registration timeline

The reform is now complete – Registration of new private generating projects with Nersa now takes an average of 19 days. COMPLETE: We will no longer track this reform.

Land use authorisation timeline

Land-use authorisations now take 30 days instead of 90. This enables faster issuance of environmental impact assessments, ultimately speeding up the process of developing new renewable energy plants.

Full unbundling of the NTCSA

The NTCSA has been operational since 1 July 2024. Eskom and the NTCSA have satisfied all the requirements necessary to effect the legal separation and operationalisation of the entity. After the Electricity Regulation Act came into effect in January 2025, the NTCSA was officially established as the transmission system operator. It is working toward becoming…

Municipality Eskom debt workout strategy

Municipalities have been presented with relief from the Eskom debt repayments following National Treasury’s decision to write off some municipal debt over a period of three years, but they must work for this relief by adhering to the strict conditions set by NT. This decision was announced at a media workshop hosted by NT on…

Virtual wheeling protocols

Virtual wheeling makes it possible to execute contracts with purchasers like traders or corporate entities and use several generators of electricity to deliver to many off-takers. Additionally, as the buyer may receive wheeling credit in the form of a refund, no changes to the power supply agreement are necessary.

“Real” wheeling protocols

The wheeling framework was approved by Nersa in March and confirmed at a media briefing held by the DoEE minister in April 2025.There is an increased number of applications for trading licences which Nersa has approved. Eskom, however, has launched a legal challenge against Nersa to grant five licences so far. Nersa chairperson Thembani Bukula…

Standard Offer to acquire electricity programme

Eskom launched a Standard Offer Programme to purchase up to 1,000MW of power from companies that have existing generation capacity for a period of three years, as well as an Emergency Generation Programme to purchase additional power when the grid is constrained. The Eskom board is considering increasing the existing 1,000MW allocation for its Standard…

ERA Bill/Act

The Electricity Regulation Amendment Bill was signed by the President in August 2024 and came into effect on 1 January 2025. It contains numerous reforms and initiatives to enable the transformation of the country’s electricity into a competitve market under a Transmission System Operator. Full implementation, however, is being held up by opposition from municipalities,…

Energy Security Bill

This legislation is backed by National Treasury and the National Energy Crisis Committee (Necom), which sits in the Presidency, forming part of the Operation Vulindlela agenda.

Raising cap on self-generation to 100MW threshold

The declaration made by President Cyril Ramaphosa on 10 June 2021 liberalised a major portion of the electricity supply sector. Ramaphosa raised South Africa’s 10MW regulatory cap on electricity self-generation, also known as “embedded generation”, to 100MW. This enabled private companies to move forward with long-delayed projects without having to worry about over-burdensome licensing requirements….

Removal of 100MW threshold

The 100MW cap on private generation projects was removed in July 2022 leading to an increased number of private generation projects. This move has increased competitiveness in pricing as, together with wheeling arrangements, private operators can now build and supply direct to customers. Private generation projects registered with Nersa have surpassed the 7GW markTo date…

Additional renewable energy development zones

In March 2021, then Environment, Forestry and Fisheries Minister Barbara Creecy signed a notice in the Government Gazette designating three more geographic areas as renewable energy development zones (REDZs): Emalahleni, Klerksdorp and Beaufort West. They join the eight zones that were earlier designated: Overberg, Komsberg, Cookhouse, Stormberg, Kimberley, Vryberg, Upington and Springbok, bringing the total…

DFFE EIA permitting regime change

This reform aims to speed up environmental impact asssessments for renewable energy plants. A proponent must ask Eskom for a consent letter attesting to the fact that its facility’s planned design will not unduly impede access to transmission or distribution facilities. If it receives no response in 45 days, Eskom is deemed to have no…

Enabling municipalities to procure excess electricity from households

Municipalities are allowed to procure excess electricity from households (for example, from rooftop solar). This requires appropriate equipment to allow for net metering (that can track electricity fed to the grid as well as taken from it). Cape Town has introduced a net metering scheme in 2023 but to date is the only municipality to…

Gas BW1.5 (Richards Bay, Phakwe)

Following environmental authorisation approval by Minister Barbara Creecy in 2022 for the 2,000MW Phakwe gas power plant in Richards Bay Industrial Development Zone, two civil society groups, Groundwork and South Durban Community Environmental Alliance (SDCEA), represented by the Centre for Environmental Rights (CER), filed for judicial review.

Mozambique electricity imports

On 22 June 2023, the cabinet signed an agreement for Mozambique to supply South Africa with 100MW of electricity within three months of the power purchase agreement. Three months later, the Mozambican government said that it wanted answers from President Cyril Ramaphosa’s administration as to why there had been no movement from Eskom on the…

Integrated Resource Plan 2025

In an effort to update in the 2019 IRP, the former DMRE issued the draft IRP 2023 for public comment in January 2024. It is intended to act as a blueprint for the country’s future energy mix and in so doing, guide the country’s plans to generate new capacity to produce electricity. Following extensive input,…

New coal-fired electricity BW2

This coal bid window was supposed to procure 1,500MW from clean coal technologies, which could include capturing carbon emissions from burning coal and storing them underground, although there are numerous variations of what is termed clean coal. HALTED: We stopped tracking this issue at end-June 2025 as it was part of the IRP 2019, which…

New coal-fired electricity BW1

This reform did advance with bid winners announced in 2016, but has since been halted following legal and environmental opposition. In December 2020, the High Court in Pretoria set aside the environmental approval for the 1,200 MW Thabametsi coal-fired power station that would have been built in its first phase at 557MW outside Lephalale in…

Nuclear electricity plant BW

The government issued a gazette to withdraw the intention to procure 2,500MW nuclear power, stating that more public consultation is required before the official RFQ can be issued. We stopped tracking this issue at end-June 2025. The 2,500MW new nuclear build was abandoned when the DoEE minister withdrew the ministerial determination in 2024. The updated…

Gas electricity capacity BW2

The draft IRP 2023 allocates 7.2GW-8.6GW of gas-to-power capacity. The gas BW2 aims to procure 1,000MW of new production at site-specific plant at Coega. To date, the BW has not yet been launched.

Gas electricity (floating) projects

Karpowership’s vessels projects were approved to provide 1,220MW of electricity capacity through the emergency’ procurement round. This came to an end when Eskom cancelled grid access for Karpowership after it was unable to meet the 31 December 2023 deadline for reaching financial close. HALTED: We stopped tracking this issue at end-June 2025. Following the failure…

Eskom land use programme

In April 2022, Eskom launched its land lease programme – a response to President Ramaphosa’s call for an “ambitious, bold and urgent response to the energy crisis”. The plan was to lease 36,000 hectares of Eskom-owned land in Mpumalanga to private sector companies that wish to develop their own power generation plants using renewable technologies….

VGBE report recommendations implemented by Eskom

National Treasury commissioned an independent assessment of all Eskom coal-fired power facilities to better understand their operational problems. Having received the VGBE report in September 2023, the electricity minister issued a 10-point plan which was drawn from the VGBE report. Some of the recommendations overlap with interventions in the Generation Recovery Plan. However, Eskom believes…

REIPPPP BW5

Of the 25 preferred bidders appointed, two are currently operational and nine are under construction. Fourteen projects have not reached financial close and their preferred bidder status was terminated. The 25 appointed bidders totalled capacity of 2,583MW, close to target, but the 11 projects that reached financial close have capacity of 1,159MW. There was a…

REIPPPP BW6

According to the Department of Mineral Resources and Energy (DMRE), five projects were selected in BW6, with a total of 860MW of capacity, far short of the 5,200MW target. Of these, only two have reached financial close and are in construction, Virginia Solar Park in the Free State and Doornhoek PV in the North West….

Battery storage BW1

In November 2023, four bidders were announced as preferred bidders for four locations as part of the Battery Energy Storage Independent Power Procurement Programme (BESIPPP), while the fifth was announced on 2 April 2024. The BESIPPP BW1 aims to procure 513MW site-agnostic battery storage. Four of these projects totalling 257MW have now reached financial close…

Battery storage BW2

The DMRE launched the second bid window (BW2) for the Battery Energy Storage Independent Power Producers Procurement Programme. The closing date for bidders was 29 August 2024, following the RFP release on 14 December 2023, The deadline for bids was extended from 30 April to 6 June 2024 and later to 29 August 2024. This…

Battery storage BW3

BESIPPPP Bid Window 3 RFP was released to the market on 28 March 2024, with a bid submission deadline of 31 July 2024 that was later revised to 31 October 2024 This third round follows the first two rounds for BESS which have been held in quick succession. It aimed to procure 616MW of battery…

Gas BW1 (site agonistic)

The Gas IPP Procurement Programme determination was gazetted on 25 September 2020 to procure 3,000MW of new generation capacity from gas technologies. The DMRE launched the request for proposals for the first gas IPP BW1 on 14 December 2023 to procure 2,000MW. However, an amendment to the RFP is currently underway and a bid submission…

Increase in planned Eskom maintenance

The suspension of load shedding in late March 2024 was a result of increased maintenance coupled with reduced demand, given the increase in private generation capacity as well as the high uptake of rooftop solar. Eskom conducted more planned maintenance on its power stations in 2024 than in the previous four years. It led to…

Pathway to stabilising power supply and achieving higher Eskom EAF

Eskom has achieved an Energy Availability Factor (EAF) of 70.78% by May 2024. This was previously achieved nearly three years ago. However, the EAF had fallen below 60%. Eskom implemented the Generation Recovery Plan to improve plant performance, with support from private sector experts. It ramped up planned maintenance to more than 8,000MW over the…