Electricity and Energy Minister Dr Kgosientsho Ramokgopa’s insistence that the State will lead and the market follow in the procurement of new electricity generation, while simultaneously indicating that any new investment will be “off balance sheet” for government and, thus, funded by the private sector, has raised questions. The Minister made the statement at a briefing held to release details of the updated Integrated Resource Plan (IRP 2025), which he argued set the policy framework and that “everyone will procure according to this policy”. This, while also acknowledging that policy adjustments had been made that resulted in the plan deviating from a least-cost outcome.
The Dispute Adjudication Board (DAB) has issued its decision with respect to a dispute between JSE-listed Stefanutti Stocks and State-owned utility Eskom over the Kusile power station, finding that Stefanutti is entitled to additional payment of R685-million, excluding value-added tax. Both parties have the right to refer the decision to arbitration, however, in terms of the contract, the decision is binding and must be given effect to, unless and until it is revised by amicable settlement or an arbitral award.
South Africa’s latest Cabinet-approved Integrated Resource Plan (IRP 2025) includes several policy adjustments that deviate from the least-cost scenario modelled, including a raising of the minimum load factor to 50% for the initial gas-to-power (GtP) plants proposed for construction by 2030. The updated plan, which will be Gazetted by October 24, has allocated 6 000 MW to GtP by that date, a target that Electricity and Energy Minister Dr Kgosientsho Ramokgopa acknowledged during a briefing would be difficult to meet.
Energy sector organisation the Energy Council of South Africa welcomes the rise in business confidence to 121.1 in September, as reported by the South African Chamber of Commerce and Industry. Business confidence is at its highest level this year and up from the 120 index points recorded in August.
As the South African energy sector undergoes a profound shift from traditional, centralised power generation to a more decentralised but interconnected one, digitally integrated systems can optimise production, strengthen grid management, improve efficiency and enable real-time decision-making, consultancy EY said this week.
EY senior specialist consultant Rashid Khan unpacked the value that digital technologies can bring to electricity systems that are more demanding on the grid and require smart balancing for stability.
Industry organisation the South African Photovoltaic Industry Association (SAPVIA) welcomes the findings of global energy think tank Ember, which has reported that renewable energy sources surpassed coal to become the world’s largest source of electricity generation in the first half of this year. This finding underscores the momentum of the solar-led energy transition and SAPVIA views this global turning point that was driven primarily by record growth in solar power as a validation of its vision for a sustainable and secure energy future for South Africa.
The 5.6 MW first phase of the SlimSun Too Solar development, located in Malmesbury in the Western Cape, is in its final commissioning stage and will soon begin supplying wheeled renewable electricity to businesses that have contracted with licensed trader Energy Exchange of Southern Africa (EXSA). The R87-million project has been developed in partnership with independent power producer Sustainable Power Solutions (SPS), which has also acted as the engineering, procurement and construction contractor.
Industry was the biggest driver of solar energy adoption in South Africa. This was highlighted by Stellenbosch University Centre for Renewable and Sustainable Energy Studies Senior Researcher Dr François Rozon, at the Solar & Storage Live Cape Town 2025 conference, on Thursday. Industry, he reported, had installed 4 GW of solar generating capacity, so far. This private generation capacity was double the amount installed by the country’s independent power producers, for public consumption.
As Africa grapples with deep-rooted energy poverty and mounting climate pressures, financial services provider Standard Bank is positioning itself as a key enabler of a pragmatic just energy transition. For Africa’s largest lender, this does not mean choosing between renewables and fossil fuels, but rather ensuring that both are harnessed responsibly to fuel inclusive growth. Standard Bank views upstream oil and gas not as a legacy burden, but as a growth lever for emerging African economies. It cites countries, such as Mozambique, Angola, Nigeria and Ghana, which continue to rely on fossil fuel exports to fund national budgets, build infrastructure and stimulate job creation.
Although significant oil and gas discoveries across Southern Africa have sharpened investor focus, unlocking that potential is not only geological; it also requires an astute understanding of the legal, fiscal, administrative and commercial requirements thereof, highlights law firm Webber Wentzel corporate practice partner and mining sector head Jonathan Veeran. As capital becomes increasingly mobile and investors weigh frontier markets against proven jurisdictions, South Africa must reckon with specific interlinked challenges that could define its upstream future.
INDUSTRY NEWS
- Minister’s ‘State will lead, market will follow’ electricity assertion raises questionsOctober 20, 2025 - 4:04 pm
- Adjudication board rules Stefanutti entitled to R685m additional payment for work at KusileOctober 20, 2025 - 1:04 pm
- IRP 2025 raises gas load factor to 50% as adjustments are also made to accommodate nuclear and …October 19, 2025 - 5:04 pm
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