Issue 154, April 2025

Roundup of major energy and electricity news and developments: 14 April to 27 April 2025

1. Red Rocket’s 144 MW Rietkloof and Brandvalley wind farms power into operation.

2. Sasol’s synthetic gas lifeline buys South Africa time – but at a price.

3. NERSA unveils gas strategy to avert looming energy crisis​.

4. New threats of legal action and power cuts for Johannesburg in electricity debt dispute.

5. ARTsolar action in local content controversy sparks gag order backlash.

6. Eskom issues tender in move to launch a new renewable energy company.

7. Samsung Heavy Industries nears $2.5bn deal for Mozambique FLNG project.

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1. Red Rocket’s 144 MW Rietkloof and Brandvalley wind farms power into operation.

In a significant achievement, Red Rocket brought two 144 MW wind farms – Rietkloof and Brandvalley – into commercial operation in quick succession last week, becoming the first Renewable Energy IPP Procurement Programme (REIPPPP) Bid Window 5 projects to provide power to grid. Announced on 25 April 2025, the back-to-back certification of commercial operation for both sites marks an important milestone not only for Red Rocket, but also for the country’s strained electricity supply. Together, the sister projects, located near the Western and Northern Cape border, has a combined nameplate capacity of 288 MW and are expected to generate around 1180 GWh annually – enough to power 367,000 households and avoid over 1.16-million tonnes of CO₂ emissions per year. Each wind farm features 32 Vestas V150-4.5MW turbines, with local contractors Power Construction and Besamandla providing the balance of plant and grid connection works. Red Rocket leads a consortium that includes African Infrastructure Investment Managers (AIIM) through its IDEAS Fund, Jade-Sky Energy, and the Red Rocket Opportunity Trust. “In a highly competitive and challenging environment, achieving financial close, navigating construction hurdles, and delivering operational wind farms is a phenomenal achievement,” said Luca Silva, Red Rocket’s Chief Operating Officer. The company's recent successes also include reaching financial close on the Wolf Wind Farm in the Eastern Cape under Bid Window 5, as well as advancing several solar, wind and hydro projects across South Africa, further cementing its role in the region’s energy transition. The achievement also comes just weeks ahead of Red Rocket’s fifth anniversary, reinforcing its position as a major player in Africa’s renewable energy sector, with a portfolio exceeding 3.8 GW across the continent.

2. Sasol’s synthetic gas lifeline buys South Africa time – but at a price.

With South Africa’s natural gas reserves from Mozambique set to run dry by mid-2028, Sasol has unveiled an interim plan to avert an industrial energy crisis. The petrochemical giant proposes redirecting methane-rich gas (MRG) – a synthetic gas produced at its Secunda facility – to sustain supply for two further critical years, from mid-2028 to mid-2030. ​This stopgap measure aims to prevent the so-called “gas cliff” that threatens to cripple industries reliant on natural gas, such as steel, glass, chemicals and food processing. The MRG plan offers a temporary reprieve, allowing time for the development of long-term solutions like liquefied natural gas (LNG) imports. ​However, the strategy is not without challenges. MRG production is costlier than piped natural gas, necessitating regulatory approval for a new maximum gas price from the National Energy Regulator of South Africa (NERSA). Sasol emphasises that without this pricing adjustment, the plan's economic viability is compromised. ​Additionally, transitioning to MRG requires technical adjustments, including potential upgrades to customer infrastructure to handle the synthetic gas's different specifications. Sasol has committed to supporting these adaptations, contingent on securing regulatory and commercial approvals. ​The urgency of this interim solution is underscored by delays in South Africa's LNG infrastructure projects, which are unlikely to be operational by 2028. Sasol's MRG plan thus serves as a critical bridge, buying time to finalise and commission LNG import facilities. ​ While not a permanent fix, Sasol's initiative provides a vital, albeit costly, lifeline to South Africa's industrial sector, emphasising the need for swift regulatory action and infrastructure readiness to ensure energy security during this transitional period.​

3. NERSA unveils gas strategy to avert looming energy crisis​.

The National Energy Regulator of South Africa (NERSA) has released a gas strategy document aimed at addressing the country's impending energy challenges, particularly the anticipated depletion of natural gas supplies from Mozambique by 2028. ​The strategy outlines a multi-faceted approach to secure South Africa's energy future. Key initiatives include the development of infrastructure for importing liquefied natural gas (LNG), exploration of additional regional gas sources, and the expansion of the domestic pipeline network to areas such as Coega and Saldanha. ​NERSA emphasises the importance of gas in the transition to a low-carbon economy, highlighting its role in complementing renewable energy and hydrogen initiatives. The Regulator calls for coordinated policy and regulatory frameworks to facilitate the integration of these energy sources. However, industry stakeholders have raised concerns about the strategy's focus. Jaco Human, CEO of the Industrial Gas Users Association of Southern Africa (IGUA-SA), argues that the plan does not sufficiently prioritise the development of domestic gas fields in the Orange River Basin off the West Coast of South Africa, citing their potential to drive industrialisation and economic growth in the longer term. ​The South African Oil & Gas Alliance (SAGOA) has welcomed the strategy document as timely but called for a briefing session for inputs from the various oil and gas industry associations. NERSA acknowledges the need for action, with Nomfundo Maseti, a full-time board member for piped gas, stating, “It is time for action. We cannot wait until there is a crisis.” ​The success of this strategy will depend on effective collaboration between the government and private sector, as well as the timely implementation of infrastructure projects to ensure energy security and economic stability.

4. New threats of legal action and power cuts for Johannesburg in electricity debt dispute.

Johannesburg is again facing threats of legal action and power cuts as a longstanding debt dispute between the utility and City of Johannesburg resurfaces. In early November 2025, Eskom threatened to interrupt electricity supply due to the City’s R4.9bn arrear debt, while the City and its electricity distributor, City Power, contest the charges, alleging overbilling of more than R3.4bn. This prompted the intervention of Electricity & Energy Minister Dr Kgosientsho Ramokgopa, who appointed the South African National Energy Development Institute (SANEDI) to submit an assessment of the dispute and the way forward within two weeks. However, the report was only submitted to the Minister four months later. While yet to be made public, the report is said to favour Eskom’s position, with the arrear debt being more about the dire financial state of the City than anything else. ​Eskom maintains that failure to pay its electricity bills hampers the utility's ability to provide reliable power and exacerbates its own financial challenges. The delays and lack of transparency have led to frustration and uncertainty among residents and businesses. Currently, municipal arear debt to Eskom stands at more than R100bn, with Johannesburg being a significant contributor. ​The unresolved dispute poses significant risks for Johannesburg, South Africa’s largest metropolitan municipality and economic hub. Previous threats of power interruptions had targeted key areas, including the Johannesburg CBD, Midrand, and Cresta, raising concerns about the impact on businesses and residents. ​Stakeholders are urging Minister Ramokgopa to release the SANEDI report and provide clarity on the way forward. The situation underscores the need for effective intergovernmental collaboration and timely resolution of disputes to ensure uninterrupted power supply and economic stability.​​

5. ARTsolar action in local content controversy sparks gag order backlash.

Durban-based solar panel assembler, ARTsolar, is at the centre of a growing controversy involving allegations of misrepresentation, legal gag orders and a constitutional challenge that could set a significant precedent for media freedom in South Africa.​ In March 2025, ARTsolar secured an interim court interdict preventing two former employees, a former client and journalist Bongani Hans from making or publishing claims that the company was importing solar panels from China while marketing them as locally manufactured. The whistleblowers allege that up to 95% of ARTsolar’s panels were imported during their tenure. ​The Industrial Development Corporation (IDC), which had invested R90m in ARTsolar to bolster local manufacturing, challenged the gag order, arguing it impeded its investigation into the company's practices. The Durban High Court amended the gag order, allowing the IDC to proceed with its inquiry. ​Further scrutiny arose when it was revealed that ARTsolar had altered its website shortly before obtaining the gag order, changing the description of its business from “manufacturer” to “manufacturer/assembler”, raising questions about transparency. ​As the case unfolds, it underscores the tension between corporate reputation management and the rights of individuals and the press to expose potential misconduct. The dispute comes at a time when the International Trade Administration Commission (ITAC), a South African government agency reporting to the Department of Trade, Industry and Competition (the dtic), announced receipt of an application for significantly increased import tariffs for a wide range of components and products used in the manufacture and assembly solar PV panels, wind turbines and batteries.

6. Eskom issues tender in move to launch a new renewable energy company.

Eskom has issued a formal tender for partners in plans to establish a new renewable energy company and develop a portfolio of renewable energy plants alongside its traditional coal-fired, diesel-driven, nuclear and hydro fleet. Meanwhile, mining group Exxaro Resources, a major supplier of thermal coal to Eskom, signed a memorandum of understanding with Eskom to tackle Scope 3 emissions in its coal supply chain. The move marks a step in Eskom’s ambition to attract private sector investment and build an internal pipeline of renewable energy projects said to amount to 2000 MW in the near term and 6000 MW by 2030. The new entity, which will be majority owned by Eskom, aims to unlock funding and partnerships that the state-owned utility cannot directly access. The company will focus on developing, owning and operating new wind and solar power projects, separate from Eskom’s traditional generation fleet. Eskom CEO Dan Marokane stressed the need for Eskom to be given the operational space to pursue its renewable energy strategy, warning that excessive bureaucracy and regulatory constraints could undermine its ability to meet transition targets. The new company is a critical part of Eskom’s Just Energy Transition strategy, which seeks to reduce its carbon footprint while securing future generation capacity. Some analysts question whether Eskom is agile enough to compete on level playing fields with experienced private sector developers, IPPs and EPCs. Eskom is burdened with much higher bureaucracy and overheads, with a very different and more conservative corporate culture. The success of Eskom’s renewable energy company will be a key test of its ability to reinvent itself and regain investor and public trust, after years of underperformance and financial distress.

7. Samsung Heavy Industries nears $2.5bn deal for Mozambique FLNG project.

Samsung Heavy Industries (SHI) is on the verge of finalising a $2.5bn contract to construct a new floating liquefied natural gas (FLNG) facility for Eni’s Coral North project off Mozambique’s Rovuma Basin. This development follows the Mozambican government's recent approval of Eni's $7.2bn investment plan for the Coral North gas field, which aims to produce 3.55-million tonnes of LNG annually over the next 30 years, starting in the second half of 2028. ​The anticipated contract would mark SHI's largest order in 2025, surpassing its current order backlog of approximately $2.2bn. SHI has previously delivered the Coral Sul FLNG unit for Eni's Coral South project in 2022, demonstrating its expertise in constructing complex offshore facilities. ​FLNG technology enables the extraction, liquefaction, storage and offloading of natural gas directly at sea, eliminating the need for extensive onshore infrastructure. This approach is particularly advantageous for exploiting remote or smaller offshore gas fields. Mozambique's substantial natural gas reserves in the Rovuma Basin are central to its economic development strategy. The Coral North project is expected to bolster the country's position in the global LNG market, attract foreign investment, and contribute to energy independence. ​The formal signing of the contract between SHI and Eni is anticipated in the coming weeks, signalling a significant advancement in Mozambique's offshore gas infrastructure and SHI's prominence in the FLNG sector.​ However, the project has drawn some criticism from environmental and human rights organisations alleging the developments are linked to forced relocations, inadequate compensation and the loss of livelihoods for local communities. ​SHI has not publicly responded to these allegations.

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