Issue 249, 12 Oct 2026

Roundup of major energy and electricity news and developments: 28 September to 11 October 2026

1. Ramokgopa unveils 9.6 GW of flexible power to complement renewable energy.

2. Eskom Green seeks private partners for 6 GW renewable energy programme.

3. SolarAfrica and Yellow Door Energy advance South Africa’s renewable energy rollout.

4. Breaking free: Municipalities and businesses accelerate energy independence.

5. Sweating the assets: A new phase in South Africa’s solar PV and battery market.

6. Electricity trading gathers pace even as NERSA lags and struggles to finalise the rules.

7. Zambia passes 1 GW solar milestone as regional renewable energy accelerates.

8. Eskom backs down on solar registration fees and threats, but legal issues remain.

9. South Africa’s grid bottleneck worsens as transmission procurement slips.

10. Oil and gas news: Refinery revival, Sasol windfall and Mozambique LNG progress.

1. Ramokgopa unveils 9.6 GW of flexible power to complement renewable energy.

South Africa is prioritising 5000 MW of gas-fired generation and 4600 MW of battery energy storage systems (BESS) in a new Section 34 Ministerial Determination, while deferring public procurement of additional wind and solar power for now. Announced by Electricity & Energy Minister Kgosientsho Ramokgopa at Windaba, the 9600 MW programme is the first determination linked to the national Integrated Resource Plan for electricity, IRP 2025. The Independent Power Producer Office will manage competitive bidding, with Eskom now also eligible to participate. Ramokgopa says the immediate priority is flexible, dispatchable capacity to complement variable renewable generation and address increasing electricity curtailment. Batteries could absorb otherwise curtailed electricity and release it during evening peaks, while gas plants would provide power when renewable output is low. The scale-up is substantial: three previous battery procurement rounds covered 1744 MW and 6976 MWh. However, the new announcement specifies battery power capacity only, leaving energy duration unclear. Details of gas plant operating profiles have also not been disclosed. The Minister promises a subsequent determination covering wind, solar, hybrid renewable-storage projects and pumped storage. For now, private renewable developers will continue relying heavily on bilateral power purchase agreements with corporate customers. Gas procurement faces difficult questions over imported liquefied natural gas prices, fuel security, port and pipeline infrastructure, and the risk of expensive, underutilised assets. These issues will be critical to the affordability and bankability of proposed projects. The Minister has also emphasised that government intends to retain a central role in shaping the electricity market, even as private investment expands. The immediate challenge is to deliver genuinely competitive, flexible capacity without delaying cheaper renewable generation or undermining South Africa’s longer-term decarbonisation objectives.

2. Eskom Green seeks private partners for 6 GW renewable energy programme.

Eskom has announced a process to select private-sector partners to develop, finance, build and operate up to 6 GW of renewable energy and battery storage projects by 2030, marking a major step in its planned return to the competitive generation market. The request for qualifications (RFQ), issued on 2 October 2026, will establish a five-year panel of potential co-development and co-investment partners. Shortlisted companies will subsequently compete through project-specific requests for proposals (RFPs). The programme will be implemented through Eskom Green, a wholly owned subsidiary still being incorporated. Eskom intends to transfer its renewables business to the new company, which will develop, own and commercialise generation and storage assets. The initial portfolio includes at least 2 GW of Eskom-originated solar PV projects and 1 GW/4 GWh of battery energy storage, alongside wind and other projects contributed by partners. These form part of Eskom’s wider, approximately 14 GW project pipeline. Individual projects are expected to operate through ring-fenced special purpose vehicles, largely using project finance. Revenue will come principally from long-term power purchase agreements with commercial and industrial customers, although public procurement opportunities are also envisaged. Eskom Green aims to expand its portfolio to 21 GW by 2035 and 32 GW by 2040. Prospective partners must demonstrate technical experience, financial capacity and a record of delivering utility-scale projects. The move is significant because Eskom, historically the dominant coal-fired generator, is positioning itself as both a competitor and collaborator in South Africa’s expanding renewables market. Its success will depend on transparent procurement, commercially viable projects and fair competition with independent power producers. A virtual clarification meeting is scheduled for 15 October 2026. Responses to the RFQ close at 10h00 on 16 November 2026.

3. SolarAfrica and Yellow Door Energy advance South Africa’s renewable energy rollout.

Two privately developed, utility-scale, solar PV projects have reached milestones in South Africa, highlighting the growing role of independent power producers and electricity wheeling in supplying commercial and industrial customers. SolarAfrica’s 114 MW SunCentral 1 plant, situated between Hanover and De Aar in the Northern Cape, reached commercial operation in September, following energisation of its solar facilities and associated transmission infrastructure in August 2026. The project is the first of three 114 MW plants forming SunCentral’s 342 MW initial phase. Ultimately, the development is planned to reach 1 GW, with electricity allocated to multiple business customers through a one-to-many wheeling arrangement. SunCentral 1 comprises more than 548,000 solar panels. PowerChina was the principal solar contractor, while Proconics NewFields delivered transmission infrastructure, including the Aquila Main Transmission Substation handed over to Eskom and the National Transmission Company South Africa (NTCSA). SolarAfrica says SunCentral 2 is nearing completion, with construction of SunCentral 3 expected to follow. Meanwhile, Yellow Door Energy has broken ground on its 49 MWp Lion Thorn Solar Park near Leeudoringstad, North West, following financial close. Commercial operation is expected in 2028. The project, financed by Nedbank and constructed by PowerChina, has secured power purchase agreements with cement producer PPC and licensed electricity trader PowerX, which will facilitate wheeling to customers. Yellow Door Energy expects Lion Thorn to generate approximately 115 GWh in its first year, avoiding an estimated 104,190 tonnes of carbon emissions annually. It also anticipates local employment and procurement opportunities in the Maquassi Hills area. These developments illustrate increasing private investment in grid-connected, wheeled, renewable energy generation, enabling businesses to secure alternative electricity supplies without necessarily installing generation facilities on their own premises.

4. Breaking free: Municipalities and businesses accelerate energy independence.

South African municipalities and businesses are accelerating investments in solar PV and battery storage to reduce dependence on Eskom and municipal electricity networks. Some are pursuing complete grid independence, while others aim to cut electricity costs without disconnecting. Cape Town has unveiled its R220-million Helderhoop Solar and Storage Power Plant in Atlantis, described as South Africa’s first metropolitan municipality-built hybrid power station. The facility combines 7 MW of solar generation, expandable to 10 MW, with batteries rated at 5 MW and 8 MWh. Although still undergoing commissioning, the City estimates savings of at least R400-million over 20 years compared with Eskom purchases. The project complements Cape Town’s independent power procurement programme, including two signed power purchase agreements reportedly priced up to 21% below Eskom tariffs. The City also plans further municipal generation and purchases from energy traders. Elsewhere in the Western Cape, Riversdale has commissioned a R210-million project combining 10 MWp of solar PV with 10 MWh of battery storage that could substantially reduce its reliance on Eskom. Funded by the Western Cape government and Hessequa Municipality, the installation is expected to generate up to 15 GWh annually. The system allows the town to operate without Eskom supply for 24 hours when required. Provincial authorities nevertheless favour reducing grid reliance rather than permanent disconnection. A more radical example is Northwest Crushers in Vryburg, which has reportedly disconnected from the municipal grid altogether. Its new installation comprises 1.3 MWp of solar PV, 2.3 MWh of battery storage and approximately 1.5 MW of inverter capacity, with two diesel generators retained for backup. Previously constrained by municipal supply capacity and repeated power interruptions, the company says the system now powers its crushing, brickmaking and concrete operations, reducing downtime and diesel consumption.

5. Sweating the assets: A new phase in South Africa’s solar PV and battery market.

South Africa’s distributed renewable energy market is entering a new phase as companies move beyond installing and financing solar PV and battery energy storage systems (BESS) to acquiring, upgrading and operating fleets of existing former customer-owned assets. The emerging model turns financiers, installers, and engineering, procurement and construction (EPC) contractors into long-term asset owners and energy service providers. Businesses and property owners sell their installations, releasing capital while transferring responsibility for ownership, operations, maintenance, performance and upgrades to specialist operators. These operators then “sweat the assets” through improved monitoring, maintenance, system optimisation and additions of solar panels or battery storage. Aggregating installations into larger fleets also creates economies of scale in procurement, engineering and asset management. Jaltech is positioning itself as a significant player in this emerging secondary market. The company has announced plans to acquire more than R500-million of existing commercial and industrial (C&I) solar PV and battery assets over six months, targeting installations valued at R1-million or more. Having already acquired and refinanced hundreds of systems nationwide, Jaltech has established an in-house engineering team to assess consumption profiles, identify underperformance, redesign installations and invest in upgrades that improve electricity savings. Original owners typically retain access to the electricity generated through long-term power purchase agreements (PPAs), potentially securing lower tariffs, improved security of supply and freedom from ongoing maintenance and capital expenditure obligations. Many systems installed during the loadshedding crisis were designed primarily to ensure continuity of supply, rather than optimise electricity costs. Jaltech’s approach seeks to unlock this untapped value by converting emergency investments into professionally managed, revenue-generating energy assets. The broader trend signals a maturing market where value increasingly comes not simply from installing capacity, but from optimising performance, managing risks and maximising returns throughout the operating lives of distributed energy assets.

6. Electricity trading gathers pace even as NERSA lags and struggles to finalise the rules.

South Africa’s emerging competitive electricity trading market continues gaining pace, despite lengthy delays by NERSA in finalising the regulatory rules needed to provide certainty for traders, generators and customers. The three-month deadline originally given by Electricity & Energy Minister Kgosientsho Ramokgopa has slipped considerably. NERSA subsequently targeted June 2026, but successive consultations and revisions mean finalisation is now taking well over a year. Meanwhile, the number of NERSA-licensed electricity traders represented by the South African Electricity Traders Association (SAETA) continues growing, alongside new power purchase agreements (PPAs) between traders, generators and commercial customers. NERSA has now published a proposed SAWEM Electricity Trading Platform Framework and associated Consultation Paper for public comment by 31 October, with hearings scheduled for 19 November 2026, adding another regulatory process to the evolving market. Despite the uncertainty, commercial developments continue. African power producer Azura Power has acquired a majority stake in Enpower Trading, strengthening its financial capacity and ability to contract with generators and customers. Enpower also holds an electricity import-export licence and conditional Southern African Power Pool (SAPP) participation status. Elsewhere, Vodacom and Eskom have completed their first year of commercial virtual wheeling, demonstrating successful monthly reconciliation and settlement of renewable electricity transactions across more than 15,000 geographically dispersed sites. SANParks has also partnered with Discovery Green and Sasol’s Ampli Energy offering to procure renewable electricity equivalent to approximately 25% of Kruger National Park’s annual consumption. These developments highlight growing investor confidence and customer demand for competitive electricity supply. However, continued regulatory delays create unnecessary uncertainty over trading arrangements, network charges, settlement procedures and market access. The widening gap between commercial innovation and regulatory progress risks constraining investment and slowing the transition towards a genuinely competitive electricity market.

7. Zambia passes 1 GW solar milestone as regional renewable energy accelerates.

Zambia has surpassed its 2026 target of 1000 MW installed solar capacity, as new wind projects, private power agreements and cross-border electricity trading accelerate Southern Africa’s energy investments and reshape Southern Africa’s energy landscape. President Hakainde Hichilema announced that Zambia’s solar capacity had climbed from 178 MW in 2024 to 1027 MW, while total installed generation capacity rose from 3777 MW to 4722 MW. Zambia now targets 10,000 MW by 2031, although expanding transmission and distribution infrastructure remains essential. Further growth is coming. Zambia’s environmental regulator has approved the 350 MW Unika wind project in Katete District, being developed by Mphepo Power and TotalEnergies. The two-phase development comprises 200 MW and 150 MW installations, with up to 42 turbines connecting through new 330 kV transmission infrastructure. Financing and construction must still follow. Meanwhile, Africa GreenCo has signed a power purchase agreement with Axian Group for the 200 MW Kudu solar project in Zambia. Expected annual production is approximately 530 GWh. GreenCo plans to market the output to utilities, mines, agricultural businesses and other customers across the Southern African Power Pool. Standard Bank and Stanbic Bank Zambia are supporting progress towards financial close. Regional trading is also attracting South African attention. Electricity & Energy Minister Kgosientsho Ramokgopa has supported exploring exports to Zambia as one response to renewable electricity curtailment, although transmission availability and commercial arrangements would be decisive. In Zimbabwe, former Eskom chief operating officer Jan Oberholzer has been appointed COO of restructured utility Zesa, which is reintegrating generation, transmission and distribution operations. These developments indicate rising renewable investment and interest in regional trade, but also the importance of bankable projects, functioning utilities and stronger cross-border grids.

8. Eskom backs down on solar registration fees and threats, but legal issues remain.

Eskom has indefinitely extended its waiver of registration-related charges for residential solar PV and battery energy storage installations, marking another significant retreat following sustained opposition to its compulsory registration requirements. Announced on 30 September 2026, the extension applies to qualifying solar PV and BES systems up to 50 kVA for customers supplied directly by Eskom. The waiver, previously extended from March to September 2026, will now remain effective indefinitely. However, Eskom continues insisting that registration is compulsory, despite removing the immediate threats, deadline and associated charges. However, the utility continues to maintain that registration is necessary for safe network operation and managing increasing levels of embedded generation. The Organisation Undoing Tax Abuse (OUTA) has welcomed the concessions but continues challenging the legal basis and practical justification for compulsory registration of legally compliant residential installations operating behind customers’ meters that do not export electricity. OUTA distinguishes between non-exporting installations and those feeding electricity into distribution networks, acknowledging that the latter legitimately require approval, appropriate metering and connection agreements. Following earlier engagements with OUTA, Eskom previously dropped requirements for a professional registered with the Engineering Council of South Africa (ECSA) to sign off residential installations. Eskom has since confirmed that customers would not face fines or disconnection for failing to register. The dispute raises broader questions about the respective regulatory powers of NERSA, Eskom and municipal electricity distributors, particularly regarding equipment installed on private property behind electricity meters. Importantly, Eskom's concessions apply to its direct customers, while municipalities may impose separate requirements under their bylaws. Although Eskom has eased its approach considerably, the fundamental dispute remains unresolved: whether distributors possess the necessary legal authority to compel registration of safe, legally compliant, non-exporting residential solar PV/BESS installations.

9. South Africa’s grid bottleneck worsens as transmission procurement slips.

South Africa’s electricity grid expansion is suffering further setbacks, threatening to delay new generation, constrain renewable energy investment and increase the cost of the energy transition. Government has postponed the final request for proposals for its inaugural Independent Transmission Projects (ITP) programme from the third quarter of 2026 to the second quarter of 2027, a delay of roughly six months or more. Seven prequalified bidders are competing for the first phase, comprising 1164 km of transmission lines and associated substations across seven corridors, with investment estimated at $1-billion. The Department of Electricity & Energy and National Treasury say further engagement is required to resolve financing, risk allocation and regulatory cost-recovery questions. A second draft tender package was due before year-end, alongside proposals for a Credit Guarantee Vehicle intended to make privately financed transmission projects bankable without direct government guarantees. The delays compound Eskom’s already inadequate grid construction performance. Against a target of 423 km, only 270.8 km of new transmission lines were completed in the 2025/26 financial year. The national Transmission Development Plan envisages approximately 14,500 km by 2034. Grid connections are also affecting generation delivery. Electricity Minister Kgosientsho Ramokgopa disclosed that five publicly procured projects totalling approximately 427 MW missed their planned 2025/26 commercial-operation dates owing to construction, connection and commissioning challenges. Of 1657 MW scheduled to enter service that year, only 1230 MW achieved commercial operation on time. Transmission shortages particularly constrain new wind and solar generation in resource-rich provinces, potentially forcing curtailment and leaving projects stranded while electricity demand elsewhere remains unmet. Without faster grid delivery, South Africa risks having generation projects ready to produce electricity but inadequate network capacity to carry it to customers.

10. Oil and gas news: Refinery revival, Sasol windfall and Mozambique LNG progress.

South Africa’s deteriorating refining capacity, growing dependence on imported petroleum products and efforts to revive domestic fuel production dominated recent oil and gas news over the last two weeks, alongside renewed investment in Mozambique’s offshore gas industry. Central Energy Fund (CEF) chairperson Ayanda Noah warned that imported petroleum products now account for approximately 61% of South Africa’s fuel demand, compared with 22% in 2019, exposing the economy to international supply disruptions and price volatility. The CEF is seeking investment to restore domestic refining capacity, including revitalising PetroSA’s mothballed Mossel Bay gas-to-liquids facility and developing a proposed 400,000-barrel-per-day refinery, estimated to cost $7-billion. Noah has urged development finance institutions to support strategic refining infrastructure, arguing that energy security, industrial development and employment benefits must also inform investment decisions. Meanwhile, Transnet Pipelines is inviting private operators to lease and manage five inland petroleum storage facilities for periods exceeding ten years. The depots, situated in the Free State, KwaZulu-Natal and Mpumalanga, could strengthen fuel distribution and storage logistics. In corporate developments, Sasol has emerged as a major beneficiary of higher international oil prices. Its share price has reportedly gained nearly 120% this year, supported by strong synthetic fuel production at Secunda and improving finances. However, its carbon-intensive coal-to-liquids operations remain environmentally contentious. Regionally, SLB OneSubsea has secured a major contract from ExxonMobil for Mozambique’s Rovuma LNG project, covering subsea production equipment, engineering and installation services. The company also plans a Mozambican service base supporting employment and skills development. These developments highlight competing priorities: rebuilding domestic fuel security and industrial capacity while confronting the financial, environmental and energy-transition risks associated with long-lived fossil-fuel investments.

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