Electricity

September 15, 2025

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…

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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…

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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…

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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…

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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.

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“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…

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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…

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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.

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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…

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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,…

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