Issue 205, February 2026

Roundup of major energy and electricity news and developments: 2 February to 15 February 2026

1. Ramaphosa draws a line: A grid independent from Eskom to anchor power reform.

2. Project Management Office (PMO) established to drive renewable energy masterplan.

3. Electricity trading rules in the balance, as Eskom signals possible legal showdown.

4. NERSA resets MYPD6 after court rebuke over proposed R54-billion settlement.

5. Mozal aluminium smelter to close: power deal collapse extends regional energy woes.

6. Renewable energy growth with hybrid, storage and corporate project announcements.

7. Funding, acquisitions and capacity consolidation signal expanding energy ecosystem.

8. Eskom wage negotiations raise cost and reliability concerns that complicate reform.

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1. Ramaphosa draws a line: A grid independent from Eskom to anchor power reform.

In the weeks leading up to the State of the Nation Address (SONA 2026) on 12 February 2026, alarm bells rang across South Africa’s energy sector over indications that Eskom intended to retain ownership of transmission grid assets under a revised unbundling plan. Business groupings including Business Unity South Africa (BUSA) and Business Leadership South Africa (BLSA), and academics such as Prof. Anton Eberhard, warned that such a move would undermine years of reform aimed at creating a genuinely independent transmission system operator (TSO), erode investor confidence, and compromise fair grid access for independent power producers and traders. Concerns escalated following reports of creditor engagements and investor calls that appeared to blur the separation between Eskom and the National Transmission Company of South Africa (NTCSA). Mining, industrial and renewable-energy stakeholders argued that transmission ownership by Eskom would entrench conflicts of interest, weaken market transparency, and deter capital for grid expansion at a time when accelerated connection of renewables and storage is urgently required. In his SONA 2026 address, President Cyril Ramaphosa intervened decisively, confirming that transmission assets will be independently owned by the TSO and not by Eskom. The announcement was widely interpreted as a reaffirmation of policy intent to establish a neutral grid operator, consistent with global best practice and reforms encapsulated in South Africa’s Electricity Regulation Amendment Act, 2024. An independently owned TSO is said to strengthen non-discriminatory third-party access to public infrastructure, enhance creditworthiness for grid investment, and strengthen the development of a competitive electricity market. For investors, lenders and large customers, the President’s clarification restores regulatory certainty and signals that structural reform of the power sector remains on track, despite Eskom’s (unsuccessful) efforts to retain ownership of transmission assets.

2. Project Management Office (PMO) established to drive renewable energy masterplan.

A significant step toward implementing the South African Renewable Energy Masterplan (SAREM) has been taken with the establishment of a dedicated Project Management Office (PMO) within the IPP Office of the Department of Energy & Electricity (DEE) to coordinate delivery across government, state entities and private sector partners. Announced in early February 2026 by DEE Deputy Minister Samantha Graham-Maré, the PMO is designed to support SAREM’s execution, strengthen inter-agency alignment and accelerate priority renewable energy, grid and localisation initiatives. The PMO will focus on several core functions: facilitating cross-institutional project planning and sequencing, tracking delivery milestones, addressing implementation bottlenecks, and ensuring alignment with South Africa’s broader energy transition objectives. Early priority areas include unlocking constrained grid connections, supporting manufacturing localisation within renewable value chains, and activating investment-ready zones for wind, solar and storage deployment. Gaylor Montmasson-Clair, director and co-founder of Southern Transitions, who played a central role in shaping SAREM during his tenure at TIPS, has consistently argued that renewable energy industrialisation must focus not only on megawatts deployed, but on building competitive domestic value chains supported by policy certainty and coordinated implementation. Industry stakeholders welcomed the move as a necessary structural entity to bridge the gap between high-level renewable planning and ground-level execution. However, localisation concerns persist, and critics argue that clear, enforceable localisation schedules and incentive frameworks are still lacking. Without robust localisation mechanisms, there is a risk that projects may bypass local manufacturing, undermining job creation and industrial development goals. The PMO’s establishment is widely seen as a constructive step in institutionalising delivery rigour for SAREM, but its success will depend on empowerment with decision-making authority, adequate resourcing, and meaningful engagement with industry stakeholders to translate renewable ambition into tangible capacity build-out and economic benefits.

3. Electricity trading rules in the balance, as Eskom signals possible legal showdown.

South Africa’s long-awaited electricity trading rules have entered a decisive and contentious phase. The draft rules, developed by the National Energy Regulator of South Africa (NERSA) in consultation with stakeholders to enable a competitive electricity market and licensed trading, were the subject of public hearings convened by the Regulator last week. Stakeholders across generation, trading, mining and large energy users made submissions on market design, balancing arrangements, credit cover, and access to transmission and distribution networks. The hearings come as Eskom pursues legal action opposing NERSA’s 2024 and 2025 decisions to grant electricity trading licences to five private traders. Eskom argues that the Regulator acted prematurely in the absence of finalised trading rules and has indicated it may seek pursue further legal action should its proposed “material changes” not be accommodated in the final Trading Rules framework. Traders and potential electricity market participants warn that litigation and threats of additional court action risk derailing reform. One analyst described Eskom’s stance as “heavy-handed, bullying and obstructive”, suggesting that attempts to use the courts as leverage in negotiations undermine good-faith engagement and regulatory certainty. The stakes are significant. Companies such as Discovery Green have signalled that trader-led wheeling models could become the dominant commercial structure in 2026, unlocking new private investment into renewables and storage. Prolonged legal disputes, however, could freeze trader operations and delay investment flows for years. For South Africa’s electricity reform agenda, timely finalisation of robust, broadly accepted trading rules is critical. Further delays would slow competition, constrain grid access innovation, and weaken confidence in the transition to a transparent, market-based power system. Perhaps the Presidency, Operation Vulindlela and the Minister of Energy & Electricity may need to step in again to align Eskom with established government policy.

4. NERSA resets MYPD6 after court rebuke over proposed R54-billion settlement.

Last week, NERSA concluded urgent deliberations and public hearings following a damning court judgment that rejected a proposed R54-billion out-of-court settlement between NERSA and Eskom. The settlement sought to resolve a R107-billion calculation “mistake” in NERSA’s MYPD6 revenue determination. The court set aside the draft settlement agreement, instructing NERSA to correct the error lawfully, transparently and with proper public consultation. In response, NERSA reopened the process, held expedited hearings, and revisited its decision, surprisingly coming to the same settlement value of R54-billion that the judge had referred to as “little more than a thumb-suck”. The Regulator acknowledged material calculation errors that had understated Eskom’s allowable revenue. This revised determination by NERSA results in higher tariff increases than previously approved (i.e. from 5.36% to 8.76% in FY 2026/27, and from 6.19% to 8.83% in FY 2027/28) with further increases still to follow in subsequent years, intensifying pressure on municipalities, industry and households. Major metros, including the City of Cape Town, have criticised the revised increases, warning of affordability impacts and further strain on local distributor finances. Business stakeholders argue that while regulatory errors must be corrected, abrupt upward revisions undermine planning certainty and erode trust in the tariff-setting framework. Editorial commentary has described the episode as a credibility crisis for the Regulator, with implications extending beyond tariffs to investor confidence in South Africa’s electricity reform programme. NERSA maintains that its revised determination complies with the court’s directive and restores procedural integrity. However, the episode highlights weaknesses in regulatory governance, quality control and stakeholder engagement at a critical time for the power sector. As MYPD6 implementation proceeds, scrutiny of both methodology and transparency is likely to intensify, with renewed calls for the finalisation of the long-delayed new Electricity Pricing Policy (EPP) for South Africa.

5. Mozal aluminium smelter to close: power deal collapse extends regional energy woes.

The impending shutdown of the Mozal aluminium smelter in Mozambique signals a stark reminder of the intertwined nature of energy supply and industrial viability in Southern Africa. Australia-based South32 has confirmed that the aluminium smelter will be placed on care and maintenance from mid-March 2026 after prolonged negotiations to secure an affordable and reliable electricity supply failed. The Mozal plant, which requires approximately 940 MW of continuous power, has been unable to lock in a new power purchase agreement with partners including Eskom, Mozambique’s hydropower producer Hidroeléctrica de Cahora Bassa (HCB) and the Mozambican government. The main shareholders of Mozal are South32 (63.7%), the Industrial Development Corporation of South Africa (IDC) (32.4%) and the Mozambican government (3.9%). Drought-related shortfalls at the Cahora Bassa hydro scheme compounded discussions, leaving parties unable to agree terms that maintain competitiveness and operational continuity. South32’s CEO has acknowledged that efforts to reach an energy deal are now too late, noting the company has ceased procurement of key raw materials and is preparing to wind down operations. The smelter is said to directly support around 5,000 jobs, with thousands more in indirect roles across the supply chain at risk – figures some reports suggest could translate to 25,000 jobs affected when wider economic linkages are considered. For Eskom, the loss of a high-volume industrial customer represents loss of revenue and demand destruction challenges, as Mozal’s continuous demand historically provided around R5-billion in annual sales and helped justify baseload capacity investments. The Mozal outcome underlines the broader energy policy imperatives facing the region: reliable, affordable, long-term electricity contracts are crucial to sustaining heavy industry, and failure to secure them negatively impacts employment, foreign investment sentiment and cross-border economic cooperation.

6. Renewable energy growth with hybrid, storage and corporate project announcements.

Over the past fortnight, South Africa’s renewable energy landscape has seen a spate of new project announcements, as stakeholders across industry, mining and logistics are moving decisively to lock in clean power capacity and long-term energy security. Financial close on a landmark solar-battery hybrid project comprising 300 MW solar PV coupled with 855 MWh of battery energy storage, with Sasol and Air Liquide as off-takers, was announced by SOLA Group on 10 February 2026. The project, targeting commercial operation in 2028, is said to be one of the country’s largest co-located solar and storage installations to date. The initiative aims to deliver flexible, dispatchable renewable energy at scale and enhance grid flexibility as variable generation grows. Financial close has also been reached on Solar Africa’s R15-billion, 114 MW SunCentral 2 project, a significant investment in utility-scale solar capacity. Expected to contribute materially to renewable generation in its region, the project indicates increasing confidence of financiers in South Africa’s clean energy market. In the mining sector, Sibanye-Stillwater secured long-term power agreements of up to 220 MW for its mining operations from late 2027, from Etana Energy’s wind and solar portfolio. Energy will be delivered to various sites through wheeling arrangements on South Africa’s national grid to support electrification and decarbonisation of Sibanye-Stillwater’s operations. Meanwhile, Release has signed a lease agreement to build a 21 MW solar plant at Motheo Copper Mine, bolstering onsite green power supply for mining operations, while Energy Partners has completed solar PV / battery energy storage systems at three DSV distribution sites, enhancing resilience and cutting operating costs. Together, these announcements illustrate both diversity and depth in South Africa’s renewable project pipeline – from large utility-scale builds to corporate and hybrid solutions – that signal growing investment confidence in the transition to a lower-carbon power system.

7. Funding, acquisitions and capacity consolidation signal expanding energy ecosystem.

South Africa’s energy sector has seen notable developments in acquisition, merger and funding activity over the past month, reflecting growing investor appetite in renewables, transmission capacity and embedded energy services. Several high-profile deals and capital raises point to maturation of the market, diversification of capability, and deeper integration of private capital into the energy value chain. RMB has closed a R4.45-billion funding package to support the expansion of the Reatile Group’s energy platform, providing bespoke capital to accelerate utility-scale solar, battery storage and embedded power developments. The financing arrangement underscores strong institutional backing for project pipelines that align with decarbonisation and energy security goals. In transmission and engineering, the completion of the acquisition of Murray & Roberts’ OptiPower business significantly bolsters Kulani Energy’s EPC capacity. The strategic buy-in enhances Kulani’s capability to execute high-voltage transmission and substation works – critical components of grid rollout and integration for renewable projects. The deal is expected to tighten local capability and improve delivery timelines for both public and private sector infrastructure programmes. Competition authorities have also cleared important strategic investment activity. The South African Competition Commission approved Norfund and Mahlako Strategic Partners’ combined stake in Anthem, an entity launched in 2024 by the AIIM-managed IDEAS Fund, in partnership with ACED and EIMS Africa. The move is anticipated to strengthen funding depth and broaden the investor base for renewable assets under Anthem’s portfolio. These transactions reflect a wider trend of capital flows and consolidation across energy generation, transmission and services. They indicate investor belief in the long-term trajectory of South Africa’s energy transition, while building critical industrial capacity and delivery clout needed to support large-scale deployment, grid integration and energy market reform.

8. Eskom wage negotiations raise cost and reliability concerns that complicate reform.

Negotiations between Eskom and its major organised labour unions have reached a critical stage with significant implications for the utility’s finances, operational stability and wider electricity reform efforts. This year’s bargaining round has seen labour step up calls for a more generous offer, citing recent reported profits and higher living costs. Initial demands from key unions in late 2025 were for wage increases of up to 15%. Unions have argued that Eskom’s financial performance – including a return to profitability – should be reflected in a “fairer” offer for members, who unions claim have endured years of wage restraint amid load shedding, restructuring and cost containment drives. Organised labour sources are pushing for a significantly above-inflation settlement to preserve real incomes and address the rising cost pressures facing workers. Eskom management, constrained by multi-year price determinations, tight credit conditions, and the need to restore fiscal health, is under pressure to moderate any wage settlement to avoid jeopardising its already tenuous cost base. A settlement significantly above current inflation forecasts would add to upward cost pressures, with implications for future tariff applications to the Regulator and for the utility’s ability to invest in critical maintenance and capacity expansion. Analysts warn that protracted talks and potential industrial action would exacerbate reliability risks and further dent customer confidence. The outcome of these negotiations will also influence broader sector reform, as Eskom’s financial performance and cost competitiveness remain central to discussions on restructuring, unbundling and third-party participation. A balanced deal acceptable to both labour and management will be critical to sustaining operational stability and progressing reform in an already challenging electricity landscape.

Independent Energy Pool (IEP Global)

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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