n this article, EE Business Intelligence MD Chris Yelland writes that South Africa’s electricity market is moving towards a competitive, rules-based, multi-market structure with transparent price discovery and shared responsibility, but warns that the South African Wholesale Electricity Market (SAWEM) alone will not solve South Africa’s transmission bottlenecks, municipal governance failures or legacy debt burdens.
South Africa’s pursuit of energy security and the correct energy mix must be hinged on science-based policy, and government must take on a leading role, Electricity and Energy Minister Dr Kgosientsho Ramokgopa said in a keynote address, on February 24, at the first day of the South African National Energy Development Institute’s (Sanedi)’s third yearly conference, being held this week in Ekurhuleni. He pointed out that with energy and the energy complex being the “defining moment of our time”, stakeholders like Sanedi would be pivotal in helping resolve the questions surrounding this and guiding the country’s policies.
Transalloys, which produces manganese ferroalloys at a smelter complex in Mpumalanga, has again warned that its operations are at risk of closure should the electricity tariff relief granted and being contemplated for the ferrochrome sector not be extended to other ferroalloy producers. In a statement released ahead of the 2026 Budget, CEO Konstantin Sadovnik said while he was not optimistic that meaningful electricity tariff relief for the wider smelting sector would be announced by the Finance Minister, such relief was urgently needed.
In this article, South African Photovoltaic Industry Association (SAPVIA) technical and policy manager Sim Khuluse writes that South Africa’s solar PV sector has entered a pivotal execution phase, with installed capacity now exceeding 10.2 GW and a strong pipeline of utility‑scale projects approaching commercial operation; however, without urgent grid modernisation and clear market rules ahead of the South African Wholesale Electricity Market’s launch, the sector’s current investment momentum could be at risk.
Energy and chemicals group Sasol is aiming to begin ramping up internal coal production and reducing external coal purchases after its destoning plant reached beneficial operation in December. CEO Simon Baloyi said the project, which involved a repurposing of the Twistdraai export coal plant, had been completed within its budget of about R700-million and was facilitating the delivery of coal to Sasol’s Secunda Operations with a total sinks content of about 12%.
Ahead of the 2026 Budget that will be delivered on February 25, the Energy Council of South Africa has called on Finance Minister Enoch Godongwana to prioritise electricity grid delivery and fiscal support for reform in the power sector.
The council says it believes power sector reform is the foundation for economic growth and job creation in South Africa, especially considering the large amount of investment needed in transmission and distribution infrastructure.
Engineering News editor Terence Creamer talks about the recent attention being given to South Africa’s economic reforms.
Liquefied petroleum gas (LPG) could play a significant role in improving energy access, resilience and economic participation across Africa, particularly in regions where grid-based electricity infrastructure remains limited, highlights industry association World Liquid Gas Association (WLGA) CEO and MD James Rockall. He says that Africa continues to face deep structural energy deficits, with about 600-million people lacking access to electricity and roughly 80% of the population in sub-Saharan Africa without access to clean cooking fuels.
South Africa’s transmission grid constraints are widely recognised, with a host of challenges and considerations that if properly leveraged also offer considerable opportunities. This was highlighted by speakers during a recent Creamer Media webinar, ‘Investing in South Africa’s Electricity Transmission Grid’, the second of a two-part Energy Outlook series featuring a practical discussion on the country’s electricity transmission infrastructure.
Private capital, expanding wheeling arrangements and the growing focus on transmission infrastructure are reshaping South Africa’s energy investment landscape, as the country moves to a more mature phase of renewable-energy development, says renewable energy investment company Revego Fund Managers CIO Ziyaad Sarang. Revego Fund Managers, which manages the Revego Africa Energy Fund, says the most bankable opportunities in South Africa are now concentrated in operational and late-stage renewable-energy assets where revenue certainty and operational resilience are “at their strongest”.
INDUSTRY NEWS
- Opinion: Risks, rewards and realities of South Africa’s wholesale electricity market reformFebruary 24, 2026 - 6:04 pm
- Sanedi, Ramokgopa call for scientific, collaboration to guide energy planningFebruary 24, 2026 - 5:04 pm
- Transalloys wants electricity tariff relief extended to full ferroalloys sectorFebruary 24, 2026 - 12:04 pm
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