Energy & Electricity Minister Kgosientsho Ramokgopa has doubled down on his call for Eskom to abandon its legal challenge against electricity trading licences, warning that litigation threatens to derail South Africa's energy reform momentum. Eskom is challenging the approval by the National Energy Regulator of South Africa (NERSA) of five private electricity trading licences, arguing that the move represents a fundamental shift in policy not subject to public consultation. But Minister Ramokgopa insists reform is “irreversible” and that Eskom must adapt to a liberalised electricity market rather than resist it. “We cannot build the future with one foot stuck in the past”, he said last week, urging the utility to focus instead on grid reliability and financial sustainability. The standoff has exposed deep divisions. Business Unity South Africa (BUSA) and Business Leadership South Africa (BLSA) have condemned Eskom's court action as anti-competitive and damaging to investor confidence. In a joint statement, the business bodies said Eskom was clinging to outdated monopolistic practices that stifle private sector participation and jeopardise much-needed new investment in generation and trading. However, the South African Local Government Association (SALGA) has thrown its weight behind Eskom, warning that unregulated private trading could erode municipal revenues derived from electricity distribution. SALGA argues that unless a sustainable model for municipalities is crafted, the reform agenda risks creating fiscal holes at the local level. Minister Ramokgopa has acknowledged municipal concerns but maintains that litigation is not the answer. Instead, he has called for constructive dialogue to balance the interests of Eskom, municipalities and electricity traders while advancing market liberalisation. The outcome of Eskom's legal strategy could determine whether South Africa's long-delayed electricity market reforms gain traction - or stall under legacy resistance.

South32 has sounded the alarm: its Mozal aluminium smelter in Mozambique is set to be placed under care and maintenance in 2026 unless a new affordable power supply deal is struck. The company announced a massive US $372m impairment, citing bleak prospects of securing electricity beyond March 2026. CEO Graham Kerr warned that the proposed tariffs would render Mozal “internationally uncompetitive”. Production is already set to fall sharply, with South32's share forecast to plunge from 355 kilotons in 2025 to just 240 kilotons in 2026. The looming cutback threatens up to 5200 direct jobs and a further 22 000 indirect livelihoods, undermining an operation that contributes roughly 3 - 4% of Mozambique's GDP and 15% of export earnings. The crisis highlights the vulnerability of aluminium smelters in Southern Africa to energy pricing. In South Africa, just a handful of energy-intensive industrial users - including South32's Hillside smelter in Richards Bay - consume 17% of Eskom's electricity, often at heavily discounted rates. These special deals, estimated to cost Eskom about R10bn in lost revenue in 2025, are increasingly under scrutiny as power utilities and governments seek to rebalance energy markets. Adding to the pressure, Carbon Border Adjustment Mechanisms (CBAM) are set to penalise exporters with higher carbon footprints, which could put even greater strain on smelters relying on fossil fuel-based power.

The Organisation Undoing Tax Abuse (OUTA) has urged South African homeowners to delay registering their rooftop solar PV systems with municipalities until clearer regulations are established. OUTA argues that recent municipal registration requirements may pave the way for additional fees or restrictive policies that could undermine the financial benefits of going solar. While many municipalities have rolled out forms and registration deadlines, OUTA warns that the regulatory landscape is still “fragmented and inconsistent” across regions. Executive Director Stefanie Fick called for a “nationally coherent framework” to guide solar adoption, ensuring that homeowners aren't penalised for embracing renewable energy. Municipalities, on the other hand, argue that registration is necessary to protect grid stability and ensure safety compliance, particularly as the number of private solar installations accelerates. The debate underscores the growing tension between decentralised energy generation and local government revenue models. Until a unified national policy is finalised, OUTA recommends homeowners proceed cautiously, saying premature compliance could expose them to unforeseen costs and complications.

South Africa's ambitions to expand offshore oil and gas exploration have suffered another setback following a landmark ruling by the Eastern Cape High Court. The court revoked exploration rights granted to a consortium led by Shell, finding that the environmental impact assessments were inadequate and failed to properly consult affected coastal communities. The decision has been celebrated by environmental activists as a victory for marine biodiversity and indigenous rights. However, industry players warn that the ruling sends a “chilling message” to investors and undermines energy security efforts at a time when the country is grappling with persistent electricity shortages. Shell said it is “reviewing its options” and may appeal. The judgment reflects a growing global trend where courts are increasingly intervening to enforce environmental safeguards, often slowing fossil fuel projects in favour of climate objectives. Critics argue that while environmental protection is critical, South Africa risks missing out on potential revenue and job creation from its untapped hydrocarbon reserves unless a more balanced approach is found.

In a major boost for South Africa's energy transition, Seriti Green, Eskom Green and African Infrastructure Investment Managers (AIIM) have announced a partnership to accelerate the rollout of renewable energy projects. The collaboration aims to unlock more than 3 GW of new wind and solar capacity over the next five years, with Eskom providing grid integration support and AIIM offering financial backing. Seriti Green CEO Peter Venn said the partnership would “fundamentally change the energy landscape” by reducing reliance on coal and driving industrial decarbonisation. Eskom's involvement marks a significant shift as the utility positions itself to play a central role in enabling, rather than obstructing, private sector-led renewable energy generation. Analysts say the deal is a “turning point” for South Africa's struggling electricity sector, potentially alleviating load-shedding pressures while meeting growing demand sustainably.

The Department of Forestry, Fisheries and the Environment (DFFE) has gazetted stricter emissions reduction targets for 2035 as part of South Africa's commitments under the Paris Agreement. The updated rules introduce tighter carbon budgets for energy-intensive sectors such as mining, manufacturing, and transport, alongside enhanced reporting and verification requirements. Climate activists have praised the move as a “critical step” toward limiting global warming, but business groups warn of increased compliance costs and competitiveness risks. The government says it plans to pair the new regulations with incentives for clean energy adoption and carbon offsetting to soften the economic impact. With the Carbon Tax set to escalate in coming years, industries are under growing pressure to fast-track their decarbonisation strategies or risk steep financial penalties.

In a surprise move, the National Nuclear Regulator has granted approval for Eskom to develop a new nuclear power station at Duynefontein near Koeberg in the Western Cape. The decision has sparked controversy, with environmental groups and anti-nuclear campaigners vowing to challenge the approval in court. Proponents argue that nuclear power offers a reliable, low-carbon alternative to coal and is essential to meeting long-term energy demand. Eskom says the project will provide baseload stability while supporting South Africa's decarbonisation commitments. Critics, however, point to safety concerns, high upfront costs, and unresolved questions around radioactive waste management. The development comes amid growing debate over the role of nuclear energy in South Africa's future energy mix, especially as renewables ramp up and storage technologies mature.

The eThekwini Municipality has secured ministerial approval to procure 400 MW of additional power generation capacity in a bid to shield Durban from rolling blackouts. The procurement programme will prioritise renewable energy projects but also includes provision for gas-fired generation, sparking debate over the city's long-term energy strategy. Energy analysts have raised concerns over the viability of securing sufficient gas supplies, warning that over-reliance on gas could expose the municipality to price volatility and infrastructure bottlenecks. Meanwhile, renewable energy advocates argue that eThekwini should focus exclusively on clean energy solutions rather than investing in transitional fossil fuels. The municipality has promised a transparent procurement process and says it aims to finalise agreements by early 2026, but questions remain over timelines, funding models, and grid integration.