Platinum group metal (PGM) producer Northam has finalised a power purchase agreement (PPA) with an independent power producer (IPP) to supply wheeled electricity from the 140 MW Karreebosch Wind Farm, on the border of the Northern Cape and the Western Cape, to provide energy to its PGM operations in Limpopo and the North West. This is the second significant renewable-energy deal for Northam, following the finalisation of a PPA in respect of an 80 MW solar power plant to service its Zondereinde mine, as announced in October 2024.
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International and local associations, as well as various energy experts, agree that achieving net zero in the 44 countries that have committed thereto will be virtually impossible without including nuclear power in the energy mix. Nuclear is widely recognised as a key energy source in the transition to a sustainable and low-carbon future; failing which, countries, including South Africa, risk falling short on their climate goals.
State-owned South African Nuclear Energy Corporation (Necsa) has secured approval, as well as R1.2-billion in funding, from government for the second phase of its multipurpose reactor, which entails doing the detailed design, Necsa Nuclear Operations and Advanced Manufacturing group executive Ayanda Myoli has told journalists. The approval and funding indicated a high level of confidence from government that it was a viable project for the country and Necsa, he said in a media briefing on February 17.
The trading arm of private energy company NOA is gearing up to supply wheeled renewable electricity to multiple customers in South Africa following the National Energy Regulator of South Africa’s (Nersa’s) recent approval of its trading licence. NOA Group CEO Karel Cornelissen says the licence enables NOA Trading to aggregate energy from the company’s own renewables generators and other independent power producers and supply it to Eskom- or municipal-connected customers across the country.
JSE-listed mining and materials group Afrimat has warned that losses in its cement segment and a weaker-than-expected performance from its anthracite segment will mean that its results for the 2025 financial year will be lower than those of the previous period. In a preclose briefing on February 17, the company noted that changes in the iron-ore market, given the rand value received on iron-ore exports and the volume reduction from ArcelorMittal South Africa (AMSA) in the first half of the 2025 financial year, severely impacted on Afrimat’s financial performance.
The International Energy Agency (IEA) anticipates global electricity consumption will increase at the fastest pace in years over 2025 to 2027, fuelled by growing industrial production, rising use of air conditioning, accelerating electrification and the expansion of data centres. Global electricity demand increased by 2.5% in 2023, 4.3% in 2024 and will likely grow by another 4% a year from 2025 to 2027.
Johannesburg electricity utility City Power CEO Tshifularo Mashava has assured business customers in the city that the entity is working on reviewing the yearly electricity tariffs to cushion businesses from increasing tariffs, as well as to attract businesses while saving jobs. She noted that the utility wanted to ensure a balance between the needs of customers with the operational realities it encounters.
The long-established practice of extracting fossil fuels and subsidising the industries associated with it, as well as institutional and regulatory drag, pose real threats to technological progress and the renewable-energy transition towards an ecologically sustainable path, says University of the Witwatersrand Business School African Energy Leadership Centre visiting adjunct professor Dr Rod Crompton. He says the continent is “in the middle of an electricity technology tsunami”, which is, for the most part, heading in a more sustainable direction, but he questions whether these technologies can truly move humanity onto this “sustainable” path in a timely manner, owing to the slow adoption of lower emissions electricity technology in Africa.
South Africa’s grid infrastructure is inadequate to support economic growth and accommodate much-needed additional power, especially from renewable-energy sources coming on line as part of the country’s just energy transition. While transmission infrastructure challenges are considerable, and much work lies ahead, the country has taken several steps in the right direction with supportive policies and a pipeline of projects being targeted.
Africa is well positioned to improve its energy security, owing to its high solar radiation factor, highlights renewable-energy business platform Discovery Green. The company says the continent’s solar radiation factor can be more than 120% higher than Europe and, therefore, the potential return of solar energy solutions would be much higher, as the continent would be able to generate electricity at a comparatively low cost.
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