Issue 196, Dec 2025

Roundup of major energy and electricity news and developments: 8 December to 21 December 2025

1. Nearly 1.3 GW of renewable energy capacity advances across SA in last two weeks.

2. Regional renewable energy progress in Botswana, Namibia and Eswatini.

3. The ups and downs in regional gas sector infrastructure developments.

4. Seven global consortia prequalify for R17-billion SA grid build programme.

5. Eskom unbundling redraws the roles of NTCSA and TSO, drawing sharp criticism.

6. Power price deadlock deepens aluminium smelter crisis in SA and Mozambique.

7. Renewables and resilience: SA’s evolving climate strategy attracts global capital.

8. Eskom moves to automate virtual wheeling amid regulatory tensions.

9. Leadership shifts and new appointments reshape SA’s electricity sector.

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1. Nearly 1.5 GW of renewable energy capacity advances across SA in last two weeks.

South Africa has seen a burst of large-scale renewable-energy project announcements and milestones over the past fortnight, underscoring continued momentum across public procurement, private offtake and hybrid generation programmes. Under REIPPPP Bid Window 7, government has confirmed the allocation of an additional 890 MW of new solar PV capacity, comprising three projects by Red Rocket and one by Engie. The Engie-led Corona project, a 240 MW solar PV plant, is expected to enter construction in late 2026 following ongoing development and grid-connection processes. The Red Rocket projects total 650 MW developed with Abo Energy, comprising the 240 MW Rondebosch Solar Park, the 240 MW Springhaas Solar Facility, and the 170 MW Springhaas Solar Facility 6. These further reinforce the growing scale and maturity of utility-scale solar procurement under the programme. In the private offtake market, Etana Energy with Acciona Energía have reached financial close on two wind projects totalling about 190 MW, comprising 100 MW and 94 MW wind farms facilities in the Western Cape. The projects have secured long-term offtake agreements and represent another step forward for multi-buyer renewable procurement models anchored by licensed electricity traders. Meanwhile, EDF Power Solutions has achieved commercial operation at its 140 MW San Kraal wind farm, adding to South Africa’s operational wind fleet. EDF is also advancing the Umoyilanga hybrid power station under the RMIPPPP, which combines generation and storage across two provinces. The hybrid project includes 115 MW of solar PV and 30 MW / 90 MWh of battery storage in the Northern Cape, alongside 63 MW of wind and 45 MW / 115 MWh of battery storage in the Eastern Cape, with full operations targeted for 2026. Together, these announcements highlight sustained investment appetite and increasing technological diversity in South Africa’s evolving power market.

2. Regional renewable energy progress in Botswana, Namibia and Eswatini.

Meanwhile, renewable-energy efforts across Southern Africa have gathered pace, with governments, financiers and developers advancing projects and strategies that span utility-scale solar PV, innovative hybrid models and green hydrogen ambitions. In Botswana, renewable-energy developer and IPP Scatec ASA has brought the second 60 MW phase of the 120 MW Mmadinare Solar Cluster online, marking commercial operation of the country’s first utility-scale solar PV facility. The milestone follows the initial 60 MW phase commissioned earlier in 2025, with both units selling clean power under a 25-year power purchase agreement to Botswana Power Corporation and expected to generate around 280 GWh annually. Scatec continues to explore bringing in equity partners to diversify long-term ownership. Eswatini has taken a first step in its domestic renewable generation strategy with the official launch of the 20 MW Tsamela Solar PV Plant, the inaugural project under the Eswatini Energy Regulatory Authority’s 75 MW solar procurement programme. The project is backed by Standard Bank financing and aims to strengthen local power supply while reducing dependence on imported electricity. In Namibia, there are moves to cement the country’s transition pathway. Government has unveiled a US $1.76-billion energy strategy that seeks significant private capital to expand off-grid solar, battery storage and alternative fuels infrastructure – a bid to diversify generation sources and reduce reliance on regional imports. Separately, the African Development Bank (AfDB) has approved a US $10-million loan through the Sustainable Energy Fund to support Hyphen Hydrogen Energy’s multi-billion-dollar green ammonia project. The finance will help fund front-end engineering design studies for solar and wind generation, battery storage, electrolysers and associated infrastructure, aimed at progressing a project that could deliver gigawatts of renewable capacity and millions of tonnes of green ammonia annually for export. 

3. The ups and downs of regional gas sector infrastructure developments.

The Southern African gas landscape is showing some forward movement in South Africa and Namibia, as well as some downside news impacting domestic midstream refining capacity for offshore gas in South Africa. The Transnet National Ports Authority (TNPA) has signed a 25-year, R1.4-billion terminal operator agreement with a joint venture between WASAA Gases and the Central Energy Fund to develop a new liquefied petroleum gas (LPG) terminal at the Port of Durban’s Island View precinct. The LOT 100 Terminal will provide 50,000 m³ of LPG storage and an 800 m³/hour dispatch capacity, diversifying import capacity beyond Richards Bay and other LPG import hubs. Construction is expected to conclude by late 2027, with Development Bank of Southern Africa (DBSA) support underpinning the project’s financing. Offshore in Namibia, energy major TotalEnergies has struck a landmark agreement with Portugal’s Galp, under which TotalEnergies will assume operatorship of the Mopane discovery (PEL 83) with a 40% operated interest while funding 50% of Galp’s exploration and appraisal costs. In return, Galp will receive stakes in nearby offshore assets including a 10% interest in the Venus discovery (PEL 56) and 9.39% in PEL 91. The partners are planning an exploration and appraisal campaign of three wells starting in 2026 to de-risk the Mopane resource and pave the way toward future development. Meanwhile, in South Africa PetroSA, a subsidiary of state-owned enterprise Central Energy Fund (CEF), faces an escalating financial crisis as the South African Revenue Service (SARS) moves to attach its mothballed Mossel Bay gas-to-liquids (GTL) refinery – with its book value of about R340-million far below the R4.5-billion tax liability being pursued by SARS. The company’s liquidity constraints cast further doubt on plans to ever restart the plant, and highlight broader challenges in maintaining domestic downstream capacity.​​

4. Seven global consortia prequalify for R17-billion SA grid build programme.

South Africa has taken a significant step in the roll-out of new 400 kV and 765 kV power transmission corridors, by prequalifying seven international-led consortia to compete in the R17-billion inaugural bid window of the Independent Transmission Projects (ITP) procurement programme. The programme is aimed at accelerating grid expansion and unlocking new generation capacity. The procurement process will now proceed to the next stage in which the prequalified bidders – drawn from an initial pool of 17 respondents – will be invited to respond to a formal request for proposals (RFP) for financing, constructing and operating high-voltage lines across key corridors. The RFP is expected in the second half of 2026 once a planned private sector Credit Guarantee Vehicle has been established. Government officials say successful deployment could help ease network bottlenecks and bolster national energy security while attracting private capital into a space historically dominated by state-led investment. However, the absence of local consortium leads and the lack of explicit project experience requirements for local partners has fuelled criticism from industry observers. While arduous financial, project experience and technical qualification criteria are required for international firms, no such requirements are set for local consortia partners. This risks sidelining the domestic grid construction industry which has significant capacity and experience, and could encourage participation by politically connected “rent-seekers” with limited value-adding experience and capability. Calls have been made for stronger experience by local partners with demonstrable track records to ensure industrialisation benefits are not diluted. Energy & Electricity Minister Kgosientsho Ramokgopa has acknowledged some of these concerns, emphasising that international participation in the initial phase reflects current capabilities, but signalling that future rounds are expected to see greater South African leadership and localisation embedded in project ownership and delivery.

5. Eskom unbundling redraws the roles of NTCSA and TSO, drawing sharp criticism.

South Africa’s long-running restructuring of Eskom has entered a sensitive new phase, with greater clarity emerging on the envisaged roles of the National Transmission Company South Africa (NTCSA) and a future Transmission System Operator (TSO) – alongside growing criticism from energy experts and labour. Under a recently revised unbundling strategy approved by government, NTCSA will retain ownership of transmission grid assets and remain responsible for grid expansion and financing, while a legally separate TSO will be established to operate the transmission system, manage dispatch and administer market functions. Eskom has argued that this structure balances investor confidence, asset stability and system security, while still enabling progress toward a competitive electricity market. However, critics have warned that separating system operation from grid ownership risks weakening the independence of the TSO. Prof. Anton Eberhard and others argue that without direct control over assets, the TSO may lack sufficient financial resources and authority to ensure non-discriminatory access, efficient grid expansion and credible grid and market governance – key foundations for electricity market reform. Further concern has been raised that delinking grid assets from the TSO could entrench Eskom’s continued influence over transmission investment decisions, potentially undermining confidence among new generators and traders. Analysts note that international best practice typically vests both ownership and operation within a single, independent transmission entity. The revised unbundling approach has also drawn opposition from organised labour, with unions such as NUM warning that restructuring may accelerate privatisation and drive higher electricity prices for low-income households. These debates are unfolding against tight deadlines for Eskom’s legal separation and unresolved challenges such as municipal debt and tariff sustainability. While government has reaffirmed its commitment to a independent TSO over time, the evolving NTCSA–TSO model remains a highly contested element of South Africa’s power sector reform agenda.

6. Power price deadlock deepens aluminium smelter crisis in SA and Mozambique.

South Africa’s aluminium smelting sector is under renewed strain as escalating electricity costs and stalled power negotiations threaten the viability of two of the region’s largest facilities, highlighting the fragile balance between industrial policy, energy pricing and regional power trade. In South Africa, South32 and Eskom have confirmed that they are jointly exploring post-2031 electricity supply options for the Hillside aluminium smelter in Richards Bay, one of the largest smelters in the world. Hillside’s existing power agreement expires in 2031, and while the parties have not disclosed details, the discussions underscore mounting concerns over long-term power affordability for energy-intensive industries amid rising. The outlook even is bleaker in Mozambique, where South32 has confirmed that it will place the Mozal aluminium smelter under care and maintenance from March 2026 after failing to conclude a new electricity supply agreement. Mozal, which sources power primarily from South Africa, has been unable to secure pricing terms acceptable to both the smelter and South African electricity stakeholders. South Africa’s transmission subsidiary, National Transmission Company South Africa (NTCSA), has stated that any new electricity deal to salvage Mozal must be financially sustainable and must not shift costs onto South African consumers. This position has been echoed by government and regulators, amid sensitivities around cross-border power exports at a time of domestic supply constraints and rising prices. South32 has warned that the Mozal shutdown could place up to 22 000 direct and indirect jobs at risk across Mozambique and the wider regional value chain, calling the outcome “not what we wanted”. Together, the Hillside negotiations and the Mozal mothballing illustrate growing tension between decarbonisation goals, and the continued operation of legacy, energy-intensive industrial assets in Southern Africa powered primarily by coal-fired electricity.

7. Renewables and resilience: SA’s evolving climate strategy attracts global capital.

South Africa is advancing various renewable energy deployment and climate resilience initiatives, combining public policy, finance innovation and adaptation planning to address both long-term energy security and climate risk. A major recent development is the launch of a US $300-million energy transition finance facility (ETFF), led by the Development Bank of Southern Africa (DBSA) in partnership with European development finance institutions (DFIs). The facility, backed by the German DEG, Dutch development bank FMO and French DFI Proparco, is designed to catalyse private investment into renewable energy and green infrastructure, with a focus on accelerating South Africa’s just energy transition and stimulating broader climate action. Complementing mitigation efforts, the African Development Bank’s Energy Governance and Climate Resilience Programme is mobilising a further US $300-million to enable reforms in   South Africa’s energy sector, strengthen governance and enhance resilience to climate shocks – signalling regional and multilateral support for integrated energy-climate solutions. On the adaptation front, South Africa’s broader climate strategy emphasises climate-resilient infrastructure, water security, agriculture and urban resilience, with national planning frameworks estimating significant financing needs by 2030 to safeguard communities against droughts, floods and extreme weather. Programmes such as the South African Industry Adaptation (SAIA) project are helping industrial sectors prepare for climate impacts, integrating resilience into operations and supporting the shift towards a green economy. Despite progress, adaptation funding remains under-resourced relative to mitigation, with less than 12% of tracked climate finance going toward adaptation priorities – highlighting ongoing investment gaps in water, agriculture and disaster risk reduction. These combined efforts – from blended finance vehicles and sovereign resilience programmes to sector-specific adaptation projects – reflect South Africa’s evolving climate strategy aimed at balancing renewable energy expansion with the urgent need to protect communities and economies from climate change impacts.

8. Eskom moves to automate virtual wheeling amid regulatory tensions.

Eskom has taken a concrete step toward scaling its long-anticipated virtual wheeling product by awarding a contract to Johannesburg-based software firm Enerweb to develop the digital platform that will automate and manage the complex mechanics of virtual wheeling across the national electricity grid and municipal distribution networks. Virtual wheeling enables independent power producers (IPPs) to supply electricity to end-users regardless of physical network location by using a financial wheeling mechanism to allocate and credit green energy generation to diverse customers connected to the Eskom network or embedded within municipal distribution networks. The product is seen as an important mechanism for expanding access to renewable energy, enabling businesses to procure clean power without investing in on-site generation. The Enerweb platform is designed to consolidate generation, consumption and billing data; perform time-of-use interval-based settlements; integrate with Eskom’s billing systems; and provide customer and market interfaces. It will also be capable of accommodating electricity traders once regulatory clarity allows their participation – a notable feature given ongoing legal disputes over trading licences. However, Eskom’s rollout of virtual wheeling has been shadowed by regulatory tensions, particularly around the absence of a formal electricity trading rules by the National Energy Regulator of South Africa (NERSA), which has sparked court challenges by Eskom against the issuing of trading licences, and delayed trader participation. NERSA has recently published draft trading rules for public comment, with hearings set for January 2026 and finalisation expected by the end of the first quarter of 2026 – a step widely viewed as essential to unlock customer choice and broader market competition. Eskom’s platform development underscores an urgent push to enable wheeling and trading infrastructure even as regulatory frameworks lag, reflecting the broader challenge of aligning system readiness with policy reform timelines.

9. Leadership shifts and new appointments reshape SA’s electricity sector.

South Africa’s electricity sector has seen a series of senior appointments and leadership moves in the last two weeks. The National Energy Regulator of South Africa (NERSA) has appointed three new regulator members in efforts to strengthen its governance capacity at a time of heightened scrutiny. Ria Govender has been appointed deputy NERSA board chairperson; Willibrod Majola has been appointed full-time board member primarily responsible for electricity regulation; and Nomfundo Maseti has had her term of office extended as full-time board member primarily responsible for gas regulation. NERSA has also established a 14-person Electricity Market Advisory Forum (EMAF) to advise on the design, rules and implementation of South Africa’s evolving electricity market. The forum is intended to provide technical and policy guidance as the country transitions toward a competitive wholesale market, including issues related to trading, system operation and market governance. While advisory in nature and expected to play a significant role in shaping regulatory thinking during this critical reform phase, the appointments are considered to be somewhat light on electricity market experience. Separately, private sector electricity trader GreenCo Power Services has appointed Isabel Fick as Group Head of Trading and Operations. Fick brings extensive experience in grid system operation and is expected to support GreenCo’s expansion across domestic and regional trading activities. The appointment follows Fick’s resignation as Head of System Operation at the National Transmission Company South Africa (NTCSA), a role central to grid stability and coordination. Her departure leaves NTCSA searching for a successor at a critical moment in Eskom’s unbundling and planned evolution toward an independent transmission system operator (TSO) and market operator (MO).

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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