Issue 162, June 2025

Roundup of major energy and electricity news and developments: 26 May to 8 June 2025

1. Two massive renewable energy projects – one wind, the other solar – power ahead.

2. Eskom blocks Traders from Virtual Wheeling, impeding market liberalisation progress.

3. SA becomes a major battery energy storage (BES) destination on the global stage.

4. R100m boost to charge EV future, and 100 locally made MAN electric buses ordered.

5. IPP Office faces shake‑up as procurement shortcomings prompt strategic overhaul.

6. Further PetroSA scandals erupt as new state oil company sets ambitious agenda.

7. Grid overhaul on horizon: South Africa to unlock private investment with bold reforms. 

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1. Two massive renewable energy projects – one wind, the other solar – power ahead.

Two of South Africa’s largest private renewable energy projects – the Overberg Wind Farm in the Western Cape and the Khauta Solar PV project in the Free State – are scaling up significantly, adding a combined 500 MW of new, clean energy to the grid through landmark private-sector deals. In the Western Cape, the second phase of the Overberg Wind Farm – developed by Red Rocket – has reached financial close, adding 150 MW to the existing 230 MW facility. This will bring the total capacity of the wind farm complex to 380 MW, making it the largest privately procured wind farm in the country. The expansion is backed by a wheeling agreement with Discovery Green, enabling renewable energy to be transmitted through Eskom’s grid to Discovery’s national trading operations. Discovery Green CEO Andre Nepgen hailed the deal as a “defining moment” for private energy procurement and a “massive step toward energy affordability and sustainability”. Meanwhile, the Khauta Solar PV project – located near Welkom in Free State province – is being ramped up by a further 349 MW with the development of Khauta South. Together with the operational 157 MW Khauta West facility, the total complex now amounts to a staggering 506 MW. Standard Bank has partnered with energy trader NOA Group, backed by African Infrastructure Investment Managers (AIIM), part of Old Mutual, to fund a significant renewable energy project pipeline, including Khauta South. Energy generated will be wheeled to mining, manufacturing, data centre and property sector customers, with Redefine Properties among the first major offtakers via a long-term wheeling agreement. These deals show how corporate demand and wheeling frameworks are enabling large-scale renewable investments outside of government auctions – unlocking new generation capacity, supporting decarbonisation goals, and boosting energy security.

2. Eskom blocks Traders from Virtual Wheeling, impeding market liberalisation progress.

In a presentation at an EE Business Intelligence webinar on 5 June 2025, Eskom announced that its Virtual Wheeling product launched about three months ago is not available to licenced electricity traders in South Africa. Mutenda Tshipala, Senior Manager: Strategy Development at Eskom Distribution, expressed his view that South Africa is and has been “acting recklessly” in its approach to electricity trading. This announcement appears to have taken the ten currently licenced electricity traders by surprise. It appears that this stance has to do with Eskom's Distribution’s stated intention in November 2024 to challenge the award of trading licences by the National Energy Regulator of South Africa (NERSA) in court. This announcement by Eskom Distribution significantly pulls the rug from under the Virtual Wheeling mechanism, and from Traders wanting to wheel green electricity to the aggregated demand of large number of small, medium and even larger-sized enterprises. In the meantime, following the decisions by NERSA to grant electricity trading licences to the last five applications by prospective electricity traders over objections from Eskom Distribution, the Regulator has finally published its Reasons for Decision (RfD) for three of the five applications. It now remains to be seen whether Eskom will follow through with its threat to challenge NERSA’s trader licensing decisions in a court action. At the time, Eskom argued that the trading licences violated NERSA’s own regulatory framework and threatened grid stability, that the electricity trading licences infringed its exclusive electricity distribution licence, and that the Traders will be cherry-picking “Eskom’s customers”. Some analysts feel that these actions by Eskom Distribution impede the liberalisation of the electricity sector and the country’s economy, and frustrate the emergence of a diversified and competitive generation sector in South Africa.​

3. SA becomes a major battery energy storage (BES) destination on the global stage.

On 30 May 2025, South Africa’s Energy & Electricity Minister Kgosientsho Ramokgopa announced five preferred bidders under Bid Window 3 of the Battery Energy Storage IPP Procurement Programme (BESIPPPP) facilitated by the ministry’s IPP Office. Under this bid window, Mulilo Energy secured four projects totalling 493 MW / 1972 MWh, while Scatec secured a 123 MW / 492 MWh project. South Africa is emerging as a global BES hotspot, with a flood of high-impact projects ranging from publicly procured deals under the BESIPPPP, direct Eskom procurements, utility-scale private sector procurements, and behind-the-meter procurements in the residential, commercial, manufacturing and mining sectors. The BESIPPPP process has completed three bid windows, with Bid Window 1 comprising 513 MW / 2052 MWh, Bid Window 2 comprising 615 MW / 2460 MWh, and Bid Window 3 comprising 616 MW / 2464 MWh. Phase 1 of Eskom’s direct BES procurements includes a total of 199 MW / 833 MWh across eight substations, with Phase 2 approved at 144 MW / 616 MWh but currently paused because of funding constraints. Eskom is said to have identified 12 additional sites nationally for further procurements. Together, Eskom’s stack totals 343 MW / 1449 MWh (Phase 1 and Phase 2), with BESIPPPP Bid Windows 1, 2 and 3 totalling 1744 MW / 6976 MWh. Private PPA, behind-the-meter BES installations and electric vehicle BES add an estimated capacity in excess of 1000 MW / 4000 MWh. This combined capacity – now exceeding 3 GW / 12 GWh – underscores South Africa’s position as a major, emerging BES destination on the global stage. With IPPs and the private sector delivering the bulk, Eskom cementing its role in backbone support, and the EV market still to mature, batteries are taking centre stage in securing a stable, grid and unlocking further renewables‑driven growth.

4. R100m boost to charge EV future, and 100 locally made MAN electric buses ordered.

South Africa’s electric mobility drive has shifted up a gear with two landmark developments signalling a major vote of confidence in the country’s clean transport future. The Development Bank of Southern Africa (DBSA) has committed R100m to Zero Carbon Charge (known also simply as Charge), a developer of ultra-fast, off-grid, electric vehicle (EV) charging stations, to roll out a national network powered entirely by solar PV and battery storage. This investment is said to support the deployment of 120 charging stations by 2026, each boasting 100% renewable energy and operating independently of Eskom’s grid – a game changer for EV adoption in a country grappling with energy insecurity. In a parallel breakthrough, the Durban-based Paruk Group has signed a letter of intent to purchase 100 fully electric MAN buses, to be manufactured locally by MAN Truck & Bus South Africa. The deal sets the stage for South Africa’s first integrated, zero-emission, public transport solution developed, built and powered domestically. Together, these announcements position South Africa at the forefront of the continent’s green transport revolution. The DBSA investment aligns with national decarbonisation goals and green industrialisation, while the bus deal supports job creation and local value chains. “These initiatives are not just about EVs or charging points – they’re about a systemic shift to a clean energy economy,” said Joubert Roux, co‑founder and executive chairman of Charge. Critically, both initiatives reduce dependence on Eskom and liquid fuels, improve air quality in cities, and place South African manufacturing at the heart of future mobility. If delivered at scale, the twin announcements could mark a tipping point for EV adoption and clean transport leadership in Africa.​​

5. IPP Pffice faces shake-up as procurement shortcomings prompt strategic overhaul.

South Africa’s IPP Office is undergoing a significant review of its operations, procurement model and business framework following mounting concerns about sustainability, sluggish project delivery and cost escalation. An Engineering News article on 6 June 2025 reported that the IPP Office is reassessing its procurement model as part of the broader national Energy Action Plan, citing structural issues undermining investor confidence and project viability. Key issues flagged include long timelines from bid to financial close and a low Final Investment Decision (FID) success rate – only around 20% across Bid Windows 5 to 7, according to insiders. A week earlier, a News24 analysis emphasised the government’s ambition to halve project approval timelines, aiming to shorten the duration between bid award and project delivery from several years to under one year. This push reflects broader frustration with sluggish rollouts that have hampered South Africa’s capacity to embed renewables into its energy mix. The combination of expensive and over-complex bidding processes, delays in adjudication and reaching financial closure, and delays in pulling in bid bonds of non-performing preferred bidders are putting the country at risk of missing renewable energy targets and undermining decarbonisation goals. Grid constraints and Eskom regulatory bottlenecks have exacerbated the problem. The IPP Office review will examine whether current practices align with international best‑practice, and will explore streamlined pathways for pricing, grid connection and credit guarantees. The objective is to rebuild market confidence, accelerate rollout timelines, and meet the government's target of securing at least 3 GW of new renewable generation per year. Failure to act could stall cross-sector investment, exacerbate load-shedding and compromise South Africa’s climate commitments. But if executed effectively, the reforms may catalyse a more agile, investor-friendly IPP regime – restoring its central role in the country’s just transition.

6. Further PetroSA scandals erupt as new state oil company sets ambitious agenda.

Just as the Central Energy Fund (CEF) launched the South African National Petroleum Company (SANPC), with lofty ambitions to revitalise the oil, gas and liquid fuels sector, further scandals have erupted at PetroSA – one of its key subsidiaries – raising alarm over governance, competence, and transparency. Part 1 and Part 2 of amaBhungane’s investigative report entitled “Dirty Fuels” published this past week have exposed PetroSA’s involvement in a string of questionable diesel and petrol trading deals. These include a contaminated fuel import that could cost the taxpayer billions of rands, and opaque transactions with little to no internal oversight. Insiders have described the state oil company’s trading arm as a “shambolic empire” riddled with irregularities, poor risk management and political interference. These revelations cast a dark cloud over the credibility of the new SANPC, which is consolidating PetroSA, iGas and the Strategic Fuel Fund under one banner. The company is meant to spearhead South Africa’s fuel security strategy – reviving local refining, expanding storage, and securing international crude and LNG supply lines. Last week, SANPC’s holding company, CEF, presented an ambitious gas and liquid fuels roadmap to Parliament. Plans include sourcing imported liquified natural gas (LNG) for South Africa, anchored by ambitions for 7000 MW of gas-to-power, and bolstering infrastructure to mitigate the looming gas supply cliff for industrial users as Sasol’s Pande-Temane gas fields in southern Mozambique decline from 2026. However, the scandals now engulfing PetroSA have raised urgent questions about SANPC’s ability to act as a credible custodian of national energy security. While CEF insists that strong governance and accountability mechanisms will be embedded in the new structure, critics warn that consolidation without reform could simply centralise dysfunction. Unless swift corrective action is taken, the state’s energy oil, gas and liquid fuels ambitions risk being derailed by the very institutions tasked with delivering them.

7. Grid overhaul on horizon: South Africa to unlock private investment with bold reforms.

South Africa is poised for a major transformation in electricity transmission, with a mix of private sector entry, regulatory reforms and even land expropriation aimed at tackling long-standing bottlenecks. Earlier this month, National Treasury confirmed that private participation in transmission will officially launch in 2026, marking a pivotal move to accelerate line construction and reduce reliance on state funding. Cabinet has endorsed an Independent Transmission Programme (ITP) designed to leverage private capital to build and operate new powerlines under build‑operate‑transfer models managed by the NTCSA. Government has also begun detailed preparatory work, including gazetting draft Transmission Infrastructure Regulations and issuing a Request for Qualification in July 2025 – to be followed by Requests for Proposals by November 2025. A new Credit Guarantee Vehicle (CGV), backed by the World Bank and Just Energy Transition Partnership, is due in early 2026 to de-risk investments. However, officials concede that private investment alone won’t solve all challenges. Minister Ramokgopa has floated the controversial option of expropriating land to secure alignment of corridors for the extensive new grid – some 14,000 km of 275 kV, 400 kV and 765 kV high-voltage lines are planned in the decade ahead. Parliament was also briefed on plans that will unock over 3000 MW of new generation capacity in the Eastern, Western and Northern Cape by easing grid access through wind power curtailment of up to 10%. Lawmakers were also shown initial tenders and milestones, signalling serious intent to roll out the first independent transmission projects. If executed with precision, these reforms could remove one of the biggest impediments to expanding new generation capacity, strengthen energy security and stimulate local industry. But successful implementation will require navigating infrastructure financing, land rights and clear regulatory frameworks – before the current grid constraints and transmission bottlenecks can be said to have been meaningfully resolved.

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.

EE Business Intelligence

EE Business Intelligence strives to be a positive formative influence on policy, economic, social, regulatory, standardisation, training and business development in the energy, electricity sectors of Africa. Its activities and services include thought leadership, analysis, research, consulting, special assignments, business intelligence, strategic event facilitation and management, and public, corporate and media speaking engagements and commentary.