Even if only incremental steps are taken, South Africa must continue to progress its electricity market liberalisation and reform agenda, such as launching the South Africa Wholesale Electricity Market (SAWEM), even if only involving a few organisations. Further, while there were many competing challenges to be addressed to ensure progress, grid access was highlighted as a key element in the coming year by the experts who participated in the ‘South Africa’s Energy Outlook 2026 – Sustaining Reform Momentum’ webinar hosted by Creamer Media on January 28.
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Amid growing concern over the affordability of electricity for businesses and households, the head of the energy secretariat at the South Africa National Energy Development Institute (Sanedi) has floated the idea of including electricity in the list of products zero-rated for value-added tax (VAT). Listing the price of electricity and load reduction as the two most pressing matters facing the electricity sector at the start of 2026, Sanedi’s Professor Sampson Mamphweli listed the prospect of a VAT zero-rating as one of several interventions to consider.
Implementing reforms in the electricity and logistics sectors to facilitate the establishment of “commercially viable, competitive markets in these network industries”, has been identified as a key priority for the next phase of the Government Business Partnership. In a statement published following a meeting of the partnership hosted in Pretoria by President Cyril Ramaphosa on January 27, it is stated that such markets would be “essential to mobilising the additional investment required for growth”.
Eskom has requested the energy regulator to approve an interim tariff of 87c/kWh in favour of Samancor Chrome and the Glencore-Merafe Chrome Venture as a temporary measure to sustain smelter operations while talks continued in relation to a longer-term solution aimed at further reducing the tariff to 62c/kWh. The utility has also requested the National Energy Regulator of South Africa (Nersa) to extend, by a further 12 months, waivers both companies secured last year in relation to take-or-pay obligations included in their negotiated pricing agreements (NPAs) with Eskom, which came into effect in 2024.
UK development finance institution British International Investment (BII) and financial services firm Alexforbes have each made a R500-million investment into renewable assets investment management firm Revego Africa Energy Fund. The funding will allow Revego to expand its portfolio of ten renewable-energy projects across South Africa and invest in new, high-quality renewable-energy assets that support South Africa’s energy transition.
A total of 332 generation and storage projects with a combined nameplate of 31.7 GW have either received budget quotes for grid connection in South Africa or have budget-quote applications pending for grid connection before 2030, a newly publicly available online portal shows. Of that, nearly 24 GW is made up of 204 advanced projects (mostly in the form of variable renewables projects) that are seeking to be connected to the grid over the coming five years.
Germany’s special envoy for the Just Energy Transition Partnership with South Africa Rainer Baake says his country’s ongoing commitment to the initiative is reflected by the fact that Germany has more than doubled its original financial commitment to €2.68-billion, from the initial 2021 pledge of €986-million. He also reported that more than €1.4-billion had already been disbursed under the programme, which is scheduled to run to 2027.
The National Energy Regulator of South Africa (Nersa) has convened its first tribunal sitting, formally activating its statutory powers to enforce compliance in the electricity sector and issuing default orders against five municipalities found to be in breach of regulatory requirements. Nersa said the tribunal sat on December 18, 2025, to hear matters of non-compliance by electricity licensees that had breached licence conditions and National Rationalised Specifications (NRS) standards.
Although challenges remain on the path to long-term sustainability and energy security, the 2025 financial year showed meaningful progress in restoring operational stability and financial resilience, says State-owned power utility Eskom. It tells Engineering News that its strategy going forward builds on these gains with a stronger focus on operational recovery, financial discipline and positioning Eskom for a liberalised, decarbonising and customer-driven energy market.
The wind industry in South Africa will generate up to 35 700 new jobs by 2030, paving the way for new careers in wind, says national skilling initiative Just Energy Transition Skilling for Employment Programme (JET SEP). To support this demand for specialised workforce, crane rental and heavy lifting services provider Sarens is operating a technical training centre in South Africa, specialising in onshore wind energy, renewable-energy construction and heavy lifting operations, with a strong focus on safety and technical excellence aligned with Global Wind Organisation (GWO) standards.
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