Issue 212, 30 March 2026

Roundup of major energy and electricity news and developments: 16 March to 29 March 2026

1. Double blow for consumers as liquid fuel and power prices set to rise on 1 April.

2. Smelters under continued strain as power costs trigger closures and standoffs.

3. Appeal Court lifts veil of secrecy on Eskom fuel supply contracts and beyond.

4. Fresh funds, reforms and deals flow in South Africa's energy transition.

5. New project announcements signal momentum in municipal and private power.

6. SAWEM delays and transmission asset ownership tensions cloud electricity reform.

7. Mulilo-Eskom-Scatec dispute exposes growing tensions over scarce grid capacity.

8. Eskom extends residential solar PV registration deadline amid rising resistance.

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1. Double blow for consumers as liquid fuel and power prices set to rise on 1 April.

South African consumers and businesses face a sharp escalation in energy costs from 1 April 2026, as a significant fuel price increase coincides with an 8.76% electricity tariff hike approved for Eskom. Recent data and market signals point to a sizeable increase in petrol and diesel prices in early April, driven by higher global oil prices, a weaker rand, and escalating geopolitical tensions in the Middle East. These pressures have already triggered warnings of supply disruptions, sporadic panic buying, and calls for demand restraint. While government and industry stakeholders insist there is no immediate risk to fuel supply, concerns over South Africa’s reduced domestic refining capacity persist. The closure of key refineries in recent years has increased reliance on imports, exposing the country to global price volatility and logistical risks. Efforts by the Department of Mineral & Petroleum Resources (DMPR) to accelerate petroleum policy reforms and rebuild local refining capacity are spoken about, but this is unlikely to deliver any relief in the foreseeable future. At the same time, proposals to cushion consumers – such as temporary reductions in fuel levies – remain politically contested and fiscally constrained. Strategic fuel stocks, often cited as a buffer, have also come under scrutiny regarding their adequacy and accessibility in a crisis. The fuel price shock comes as electricity tariffs rise again, compounding cost pressures across the economy. Higher diesel prices will feed directly into the cost of peaking and emergency generation, while transport and logistics costs are set to increase, with knock-on effects for food and general inflation. With both liquid fuel and electricity prices rising simultaneously, South Africa faces inflationary pressures and a renewed cost-of-living squeeze, indicating structural weaknesses in energy policy, infrastructure and market design that continue to expose the economy to external shocks.

2. Smelters under continued strain as power costs trigger closures and standoffs.

Energy-intensive smelting industries in South Africa and Mozambique have come under renewed pressure over the past two weeks, with escalating electricity costs and supply risks driving operational cutbacks, tense negotiations and potential closures. In South Africa, Glencore and Merafe Resources have temporarily paused retrenchment processes at their ferrochrome operations while engaging Eskom over a proposed discounted electricity tariff of about R0.62/kWh. However, the companies have warned that the utility’s conditions attached to the offer are unworkable and have tabled counterproposals. Talks remain finely balanced, with the risk that Glencore could exit rescue discussions altogether. Meanwhile, at Samancor Chrome, retrenchment consultations affecting around 2,400 workers are proceeding despite the proposed discounted electricity tariff, with the company warning that the conditions attached to the deal still threaten long-term viability – prompting strong opposition from organised labour. The standoff indicates the fragile economics of South Africa’s ferroalloys sector, where electricity can account for more than half of production costs. Rising tariffs and policy uncertainty have already led to plant closures over several years, eroding the country’s global competitiveness in ferrochrome and ferromanganese. In Mozambique, South32 has formally placed its Mozal aluminium smelter on care and maintenance, citing power supply constraints and cost pressures. The move marks a significant blow to one of the region’s largest industrial energy users and exporters, with implications for regional electricity demand and cross-border power flows. The loss of large industrial customers due to high electricity prices highlights the broader risk of demand destruction as tariffs rise. Together, these developments point to a deepening structural crisis for energy-intensive industries in the region. Without credible, competitive and stable electricity pricing frameworks, further contraction of the smelting sector appears increasingly likely, with significant implications for jobs, exports and industrial policy.

3. Appeal Court lifts veil of secrecy on Eskom fuel supply contracts and beyond.

A landmark ruling by South Africa’s Supreme Court of Appeal has dealt a decisive blow to long-standing secrecy in public energy procurements, with far-reaching implications for Eskom and the broader energy sector. In a judgment delivered on 23 March 2026, the court dismissed Eskom’s appeal and upheld an earlier High Court order compelling disclosure of its coal, diesel and related transport contracts. The court found that access to such information is a constitutional right, and that claims of “commercial sensitivity” were unsupported and insufficient to justify secrecy. Critically, the court reaffirmed that disclosure is the default under the Promotion of Access to Information Act, and that public entities bear the burden of proving real and probable harm if they seek to withhold information. In this case, Eskom failed to do so, with the court emphasising that the public “has a right to access” contracts concluded in its interest. While the ruling relates directly to Eskom’s coal and diesel procurements, the implications extend far wider. The judgment sets a higher bar for secrecy across all state institutions, including the Department of Energy Electricity & Energy, the Department of Mineral & Petroleum Resources, and the IPP Office, where contractual opacity has long characterised coal, oil, gas, nuclear fuel and renewable energy supply agreements. The decision is expected to open scrutiny of pricing, contract terms and procurement practices across the energy value chain, potentially exposing inefficiencies, inflated costs and/or irregularities that have historically been shielded from public view. For policymakers and regulators, the ruling signals a clear judicial intolerance for opaque decision-making in sectors funded by consumers and taxpayers. For the energy market, it may mark the beginning of a more transparent and accountable procurement regime – one that could reshape investor confidence, regulatory oversight and public trust.

4. Fresh capital, funds and deals flow in South Africa's energy transition.

A series of recent announcements point to growing momentum in energy-related investment across South Africa, spanning private capital mobilisation, municipal infrastructure reform and corporate transactions. Leading the developments is the first close of the Stanlib Asset Management Khanyisa Energy Transition Fund, which has secured R5-billion in committed capital. The fund targets long-term investment into renewable energy, decentralised power, green hydrogen and related infrastructure, with ambitions to scale to R18-billion over time. Capital has already been deployed into 14 operating renewable energy assets under the REIPPPP, signalling both investor appetite and project maturity. On the public sector side, National Treasury has launched a R54-billion performance-based grant aimed at strengthening infrastructure delivery across the country’s eight metropolitan municipalities. The initiative, part of broader metro trading services reform, is designed to unlock more than R100-billion in investment over six years in electricity, water and waste systems, with municipalities required to co-invest and improve operational performance. Meanwhile, in the private sector, rooftop solar developer, Solareff, has completed a management buyout of a majority stake previously held by Stanlib Infrastructure Fund II. The transaction reflects continued consolidation and maturation in South Africa’s commercial and industrial solar market. Together, these developments highlight a broadening investment landscape. Capital is increasingly flowing, not only into generation assets, but also into enabling infrastructure, municipal reform and distributed energy platforms. While structural challenges remain, the scale and diversity of recent investment signals growing confidence in South Africa’s evolving energy transition.

5. New project announcements signal momentum in municipal and private power.

Three recent power generation project developments indicate growing diversification of South Africa’s electricity supply, spanning municipal innovation, private sector self-generation and large-scale solar investment. In the Western Cape, the City of Cape Town has advanced plans for a waste-to-energy facility aimed at converting landfill gas into electricity. Backed by an investment of about R93-million, the project forms part of the city’s broader strategy to reduce reliance on Eskom and improve energy resilience. Separately, the city has reported periods of “summer energy independence”, enabled by a combination of embedded generation, demand management and procurement initiatives. In the Northern Cape, Envusa Energy, an electricity trader established by Anglo American and EDF Renewables, announced that the 240 MW Mooi Plaats solar PV project it has developed reached commercial operation. The project supplies power to mining operations linked to Anglo American: Valterra Platinum; diamond mining company De Beers; and iron-ore mining company Kumba Iron Ore. This marks a significant milestone in the shift by energy-intensive users toward self-supply through wheeling and private power purchase agreements, and highlights the increasing scale and maturity of private renewable energy procurement in South Africa. Meanwhile, plans have been announced for the 510 MW Khauta solar PV project in the Free State, positioning it among the largest solar facilities in the country. The project is expected to supply nearby mining operations and further expand the role of utility-scale renewables in industrial energy supply. Together, these developments reflect a clear trend: municipalities, mines and private developers are accelerating investment in generation capacity outside traditional Eskom-led procurement. However, their ultimate success will remain closely tied to grid access, regulatory certainty and the pace of transmission expansion.

6. SAWEM delays and transmission asset ownership tensions cloud electricity reform.

South Africa’s planned wholesale electricity market reform is facing fresh delays and rising institutional tension, with new timelines for the South African Wholesale Electricity Market (SAWEM) and some pushback on transmission reform and asset ownership. Recent updates indicate that SAWEM’s full operationalisation will be slower and more phased than initially envisaged. A Department of Energy & Electricity (DEE) workshop presentation outlines a staggered rollout, beginning with a limited internal market in 2026, followed by gradual expansion and price formation phases extending into 2027 and beyond. This reflects the complex interdependencies between policy, regulation and system operations required to enable a functioning market. The roadmap highlights that key enablers – including market rules, pricing frameworks, vesting contracts and platform readiness – remain work in progress, with coordination required between energy regulator NERSA, the National Transmission Company South Africa (NTCSA), and DEE. There remains some uncertainty over future transmission asset ownership and independence of the NTCSA, which still appears to be an open issue in some quarters. President Cyril Ramaphosa stated in SONA 2026 that transmission assets would be owned by the NTCSA, which would be independent of Eskom within five years. But this is reportedly still being met with some resistance within Eskom and labour unions. The Energy Council of South Africa has called for a phased transition, warning that abrupt structural changes could introduce operational and financial risks. Eskom, meanwhile, is reportedly still citing concerns over asset ownership, balance sheet impacts and system stability. These developments point to a growing disconnect between policy intent and implementation reality. While SAWEM remains central to unlocking investment, improving transparency and reallocating risk, delays and institutional contestation risk undermining investor confidence and slowing the pace of electricity market reform at a critical juncture.

7. Mulilo-Scatec-Eskom dispute exposes growing tensions over scarce grid capacity.

A high-profile legal dispute between renewable energy developer, Mulilo Renewable Energy, and Eskom, involving projects linked to Scatec, has brought into sharp focus the intensifying competition for scarce grid connection capacity in South Africa. At the centre of the case is Eskom’s decision, alongside the National Transmission Company of South Africa (NTCSA), to cancel previously allocated grid access for a 240 MW privately procured solar PV project developed by Mulilo, and to reallocate that capacity to publicly procured REIPPPP Bid Window 7 projects associated with Scatec. Mulilo has challenged the move in the High Court, arguing that it had secured valid grid access rights and that the reallocation was unlawful. An interim interdict granted in December 2025 prevents Eskom and NTCSA from utilising the disputed capacity pending a full hearing that is expected to be heard in the High Court Gauteng Division, Johannesburg, on 9 and 10 April 2026. While the dispute centres on a particular project, it highlights a far broader issue: transmission capacity has become one of the most constrained and contested resources in South Africa’s energy transition. Grid saturation in key renewable energy regions in South Africa is increasingly shaping which projects proceed and which stall, regardless of generation readiness. The case also exposes uncertainty around grid allocation rules, project milestones and regulatory sequencing between private and publicly procured projects. These ambiguities are creating rising legal risk, with similar disputes likely to follow as developers compete for limited capacity. For policymakers and investors, the implications are significant. Without clear, transparent and consistently applied grid access rules – alongside accelerated transmission expansion – South Africa risks delays to new capacity, erosion of investor confidence, and increasing litigation as grid access becomes the new currency of the electricity market.

8. Eskom extends residential solar PV registration deadline amid rising resistance.

After Eskom dropped its unlawful requirement for signoff of residential solar PV systems by a professional registered with the Engineering Council of South Africa (ECSA) last year, the utility has now extended the deadline of 31 March 2026 for registration of such systems and prolonged the waiver of associated fees, in a move widely seen as a response to mounting customer resistance and legal pressure. Eskom confirmed that the fee waiver for residential solar PV systems below 50 kVA will now run until the end of September 2026, alongside an extended compliance deadline for registration. Eskom has framed the decision as part of efforts to encourage compliance and improve grid visibility, while also advancing its rollout of time-of-use tariffs for residential customers. However, the policy has triggered strong pushback from civil society, industry bodies and customers, who argue that Eskom is overreaching its lawful authority – particularly in seeking to enforce registration of behind-the-meter, non-export systems. The Organisation Undoing Tax Abuse (OUTA) and others have questioned the legal basis for mandatory registration in such cases, warning that the approach risks undermining rooftop solar PV adoption and consumer trust. Concerns have also been raised about the utility’s push to migrate customers to new tariff structures that have high fixed charges and complex time-of-use metering requirements. While Eskom maintains that registration is necessary for safety, critics argue that existing standards and installation regulations already address these issues, and that in reality, Eskom’s motives are commercial. The extension provides temporary relief but does little to resolve the underlying legal and policy disputes. Without regulatory clarity and stakeholder alignment, the continued growth of decentralised self-generation makes further conflict between electricity distributors and customers almost inevitable.

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Independent Energy Pool (IEP Global) is a business-to-business energy pool, allowing energy users and energy traders to buy and sell electricity. IEP's ecosystem allows transacting of electricity in a balanced and standardised environment. The pool incorporates the ability to trade renewable energy certificates, as well as the tracking and reporting of ESG criteria.

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