Engineering News editor Terence Creamer discusses the preparations that are under way for the launch of the South African Wholesale Electricity Market, or SAWEM.
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As South African municipalities embrace decentralised energy sources to strengthen grid resilience and cut costs, many are discovering that managing small-scale generators is far more complex than the traditional single-supplier model, says electricity consulting company Utility Consulting Solutions (UTCS). The shift to decentralised generation – in the form of rooftop solar, other alternative small-scale embedded generators and battery storage – is transforming how municipalities secure their energy. Yet the range of sources has created “unprecedented management” demands that existing municipal systems were never designed to handle.
Luminaire manufacturer Beka Schréder has opened its new head office, in Olifantsfontein, Gauteng, with the aim to streamline workflows, reduce production bottlenecks and enable quicker turnaround times for customers. With improved logistics, optimised layout and state-of-the-art manufacturing systems, the company is now able to deliver orders with greater speed and precision, it says.
Renewable energy developer and independent power producer Mulilo Energy has secured an initially R1.1-billion corporate facility from financial services firm Standard Bank to support equity commitments. A further R5.9-billion can also be allocated from headroom as the security pool grows. The Equity HoldCo Facility is designed to further empower Mulilo’s growth trajectory, Standard Bank says.
South Africa’s energy regulator apologised for a R54-billion error in calculating electricity tariffs, a mistake that will be passed on to consumers. The National Energy Regulator of South Africa, which determines what State power utility Eskom can charge for electricity, announced the miscalculation last month, without providing further details.
The National Transmission Company South Africa (NTCSA) has provided a detailed breakdown of the steps being taken in preparation for the launch of the South African Wholesale Electricity Market (SAWEM) – a key evolutionary step in the development of a fully competitive electricity supply industry in South Africa. The aspirational launch date of April 1, 2026, remains in place, but NTCSA senior manager for market operations Keith Bowen has again underlined that the timeline faces several risks.
Amid a global emphasis on a just energy transition to help mitigate the impacts of climate change, issues such as exclusion and inequality should be addressed to ensure the transition is equitable. During the fifth instalment of the Standard Bank Climate Summit, held on September 9, Standard Bank Group CEO Sim Tshabalala argued that, in the context of climate policy, exclusion and inequality slow down the transition in the Global South and create intense and effective resistance to transition in the developed world.
The International Finance Corporation (IFC) is setting up an entity aimed at lowering the cost of mini grids in Africa, to accelerate plans to connect 300-million Africans to electricity by 2030. The vehicle targets a first financial close of approximately $300-million before the end of 2025, with a long-term capitalisation goal of $1-billion, according to Andrew Herscowitz, the CEO of the so-called Mission 300 Accelerator.
Ethiopia officially inaugurates Africa’s largest hydroelectric dam on Tuesday, a project that will provide energy to millions of Ethiopians while deepening a rift with downstream Egypt that has unsettled the region. Ethiopia, the continent’s second most populous nation with a population of 120 million, sees the $5-billion Grand Ethiopian Renaissance Dam (GERD) on a tributary of the River Nile as central to its ambitions for economic development.
Another dispute may be looming between Eskom and the National Energy Regulator of South Africa (Nersa). This one, over the regulator’s decision to approve ArcelorMittal South Africa’s (AMSA’s) applications for six-year negotiated pricing agreements (NPAs) for its Newcastle and Vanderbijlpark operations. In a statement, Nersa noted that Eskom had rejected the applications made by AMSA in September and October last year on the basis that the utility did not agree that they met the criteria for such tariff relief.
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