Issue 165, July 2025

Roundup of major energy and electricity news and developments: 23 June to 6 July 2025

1. National blackout in Zimbabwe with some progress in Zambia widens power divide.

2. Ex-Eskom chiefs Molefe and Singh arrested in R93bn Transnet fraud case.

3. Power play or pricey perk? Eskom’s secret smelter deals under fire.

4. R4.9bn billing dispute settled, but deeper issues linger between Eskom and City Power.

5. Plugging in power: South Africa’s BESS boom amid plunging battery power prices.

6. R2.5bn AfDB lifeline for Joburg as City Power faces maladministration storm.

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1. National blackout in Zimbabwe with some progress in Zambia widens power divide.

Southern Africa’s fragile power networks were again thrust into the spotlight this week as Zimbabwe plunged into a nationwide blackout, while neighbouring Zambia made some strides in addressing its power problems in a move to a more sustainable energy future. A “major disturbance” on Zimbabwe’s national grid late evening on Wednesday 2 July 2025 triggered a complete shutdown of electricity generation across the country, including at the Kariba South Hydro Power Station. The blackout, confirmed by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), disrupted business and households nationwide. Power had yet to be fully restored by the morning of Friday 4 July, compounding existing electricity shortages caused by declining generation capacity, ageing infrastructure and drought-induced hydropower constraints. In contrast, Zambia is showing signs of moves towards greater energy resilience through growing private investment in renewables. Africa GreenCo and Axian Energy have partnered to develop two new grid-connected solar photovoltaic projects with a combined capacity of 250 MW. These plants, to be located in central and southern Zambia, aim to support regional power pool trade and reduce reliance on hydropower, which has been strained by erratic rainfall. Meanwhile, British independent power producer Globeleq is advancing its bid to acquire a majority stake in Lunsemfwa Hydro Power Company, which owns 56 MW of hydro capacity. The deal signals renewed investor confidence in Zambia’s power sector and builds on the government’s efforts to liberalise and decarbonise its energy mix. While Zimbabwe battles recurring system failures and outdated infrastructure, Zambia is emerging as a regional renewables frontrunner – highlighting the growing divergence in energy fortunes across Southern Africa. Without urgent reforms and investment, Zimbabwe risks further isolation from the regional power transition.

2. Ex-Eskom chiefs Molefe and Singh arrested in R93bn Transnet fraud case.

Former Eskom CEO Brian Molefe and ex-CFO Anoj Singh were arrested on 30 June 2025 on charges of fraud and corruption related to a controversial R93-billion locomotive deal during their tenure at Transnet. The pair, along with former Transnet CEO Siyabonga Gama and two other former executives, face allegations of facilitating procurement irregularities, inflating contracts, and enabling kickbacks tied to the acquisition of 1064 locomotives between 2012 and 2017. The accused appeared in the Palm Ridge Specialised Commercial Crimes Court and were each granted bail of R50 000. Molefe, Singh and Gama turned themselves in earlier that morning following lengthy investigations by the National Prosecuting Authority’s Investigating Directorate. The arrests follow years of allegations that the deal – among the largest public procurement contracts in South African history – was riddled with corruption, state capture links, and Gupta family influence. The Organisation Undoing Tax Abuse (OUTA) welcomed the arrests as long-overdue accountability for executives implicated in state capture. “This is a significant step toward restoring integrity in state-owned enterprises,” said OUTA CEO Wayne Duvenage. Meanwhile, the MK Party, where Molefe serves as spokesperson on electricity and energy in Parliament and sits on the Portfolio Committee on Electricity and Energy, compared the arrests to the legal troubles of former President Jacob Zuma, alleging selective prosecution and political targeting. However, the NPA maintains that the charges are evidence-driven and part of broader efforts to dismantle high-level corruption networks. The high-profile arrests reignite scrutiny of South Africa’s parastatals and their role in state capture. While the legal process unfolds, the case signals that even the most prominent figures are no longer beyond the reach of the law.​

3. Power play or pricey perk? Eskom’s secret smelter deals under fire.

Eskom’s secretive electricity discounts to aluminium and ferrochrome smelters have come under sharp scrutiny following the release of a new briefing note by Meridian Economics, which exposes the costly impacts of these long-running Negotiated Pricing Agreements (NPAs) on the power utility and South Africa’s economy. The briefing focuses on the 1100 MW Hillside aluminium smelter in Richards Bay, owned by South32, which consumes 10.3 TWh of electricity per year – about 5.6% of Eskom’s sales – under an opaque, long-term NPA set to run until 2031. Hillside effectively receives a 50% discount for electricity over the life of the NPA, compared to other large customers on the Eskom Megaflex tariff, and amounts to a discount of some R10bn a year. Despite assurances that Eskom receives operational benefits from the interruptible nature of the Hillside supply arrangement, Meridian estimates that a 1.2 GW 2-hour battery energy storage system (BESS) would provide the same benefits at a price estimated at R3bn per year, indicating a net subsidy to the private sector Hillside plant of about R7bn per year from this deal alone, with further subsidies being extended to the struggling ferrochrome and alloys sectors. Cabinet recently approved new price support for ferrochrome producers, alongside chrome ore export controls aimed at revitalising the embattled industry. Electricity Minister Kgosientsho Ramokgopa has defended the incentives, citing jobs, foreign exchange earnings, and the strategic value of keeping smelters operational. But critics argue these deals distort energy markets, deepen Eskom’s financial woes, and burden other consumers with higher tariffs. “The opportunity cost of supplying cheap electricity to energy-intensive, low-employment industries is immense,” said Meridian director Dr. Grove Steyn, calling for a full policy and economic review of NPA arrangements.  

4. R4.9bn billing dispute settled, but deeper issues linger between Eskom and City Power.

Eskom and Johannesburg’s City Power have reached a settlement of a long-standing electricity billing dispute dating back to 2020. While hailed as a breakthrough by the Minister of Energy & Electricity and both parties, the outcome raises broader questions about billing accuracy, check metering, estimating processes, municipal debt and the governance of bulk power purchases in South Africa. The four-year dispute centred on Eskom’s claims of R4.1bn arrear debt for non-payment of electricity, and City Power’s counter claims of R4.9bn in overbilling by Eskom. These included a R4.47bn variance from its so-called “mock billing” practices, R323m for estimated billing that ignored the impact of load-shedding, and R91m in estimation charges at sites without functioning meters. The dispute was independently assessed in a report by the South African National Energy Development Institute (SANEDI), made available courtesy of OUTA after an application under the promotion of Access to Information Act (PAIA). The SANEDI report rejected City Power’s mock billing, found evidence of both overbilling and underbilling but with an overall net underbilling by Eskom, non-compliant estimation practices, and procedural gaps on both sides. City Power has now agreed to settle its outstanding R3.2bn bulk supply account with Eskom over the next four years. Eskom in turn waived R830m in claims for exceedances of notified maximum demand, interest and penalties. The SANEDI report revealed systemic flaws by Eskom and City Power. Eskom’s estimations failed to factor in the effects of load-shedding and violated NRS047 estimating standards, while City Power’s check meters were frequently misconfigured and its “mock billing” practices found to be deeply flawed. While the financial dispute is now resolved, the technical and institutional weaknesses remain. The settlement may have kept the lights on – but the real work of modernising Eskom and municipal electricity billing systems has only just begun.​​

5. Plugging in power: South Africa’s BESS boom amid plunging battery power prices.

South Africa is taking steps towards an era of greater grid resilience with the 153 MW / 612 MWh Red Sands Battery Energy Storage (BES) project achieving financial close, marking Africa’s largest standalone BES system to date. The joint venture initiative between Globeleq and African Rainbow Energy secured R5.4bn debt financing from Absa and Standard Bank. The achievement was inked in a 15‑year power purchase agreement signed with the National Transmission Company South Africa (NTCSA) and procured by the IPP Office of the Department of Energy & Electricity. The system, located near Upington in the Northern Cape province, will relieve transmission bottlenecks and enhance grid stability upon completion in 2027. Only a month earlier, EEBI reported on South Africa becoming a significant BESS destination on the global stage, with preferred bidders announced for a total of 615 MW / 2460 MWh under Bid Window 3 of the Battery Energy Storage IPP Procurement Programme (BESIPPPP) of the IPP Office, cementing the role of BES in supporting Eskom's grid. This local progress aligns with global trends as battery costs continue to plummet. In China, a monumental auction for 25 GWh of lithium-ion battery modules yielded bids as low as US$51.6/kWh for four-hour storage systems – about 30% below last year’s average. Domestically, these global price shifts are vital. Unit pricing reductions make utility-scale BES projects more economically viable in South Africa, enhancing renewables integration and helping combat load-shedding. The NTCSA and Eskom stand to benefit from competitive capital costs, especially as long-duration storage becomes a backbone of dispatchable power. Together, BESIPPPP, Red Sands and declining battery prices signal a turning point in South Africa’s energy landscape – pointing to a future where clean, dependable and cost-effective storage underwrites a stable, cleaner grid.

6. R2.5bn AfDB lifeline for Joburg as City Power faces maladministration storm.

The City of Johannesburg has secured a R2.5bn loan from the African Development Bank (AfDB) to finance infrastructure development, economic upliftment and poverty reduction. The 15-year concessional loan is expected to support projects in energy, water and sanitation – all vital to restoring service delivery in the embattled metro. Mayor Dada Morero, who only recently survived a vote of no-confidence brought by the Democratic Alliance in the Johannesburg Council, hailed the loan as a “vote of confidence” in the City’s ability to turn around its fortunes. Yet the funding boost comes amid growing controversy surrounding Johannesburg’s electricity utility, City Power, which is engulfed in allegations of nepotism, maladministration and unqualified appointments. A News24 investigation has revealed systemic failures within City Power, including the hiring of politically connected but unqualified individuals, weak internal controls, and the stalling of critical infrastructure upgrades in a network already in severe decline. An internal City Power memo cited R40bn in infrastructure backlogs, with recurring blackouts plaguing neighbourhoods. In response to the exposé, City Power’s board has launched an urgent investigation into the allegations, while the entity’s CEO and senior executives face mounting pressure to account for irregularities. Sources within the utility describe a culture of patronage and political interference that has undermined operational performance and accountability. The AfDB loan presents an opportunity for Johannesburg to modernise its infrastructure and tackle deepening urban poverty. But the success of these ambitions hinges on restoring institutional integrity. Without decisive action to clean up City Power and restore other City infrastructure and services, the risk remains that much-needed funds could be squandered – dimming the very hopes this financing was meant to ignite.

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