17 to 30 August 2026

Roundup of major energy and electricity news and developments

by Chris Yelland, managing director, EE Business Intelligence

1. R2.3bn 148 MW Voltalia Bolobedu solar project starts supplying Richards Bay Minerals.

French renewable energy developer, Voltalia, has commissioned its 148 MW Bolobedu solar PV plant in Limpopo, supplying Rio Tinto subsidiary Richards Bay Minerals (RBM), with energy wheeled through the Eskom grid under a long-term corporate power purchase agreement. This followed testing from late December 2025 and grid connection in January 2026. Located in Limpopo, the R2.3-billion project will generate about 300 GWh of renewable electricity a year for RBM's mining and processing operations in KwaZulu-Natal. Voltalia says the plant will reduce RBM's greenhouse-gas emissions by at least 10%, avoiding about 237,000 tonnes of CO2-equivalent emissions annually. The output is comparable with the annual electricity consumption of about 425,000 people.

The project highlights a broad local and international supply chain supporting South Africa's utility-scale renewable-energy sector. Voltalia subsidiary Renvolt was the engineering, procurement and construction contractor, while Stefanutti & Stocks undertook the balance-of-plant works. Canadian Solar supplied the PV modules, TBEA the inverter stations, Trina the solar trackers, Jiangshan Scotech Electrical the power transformers, and Tractionel Enterprise constructed the project substation. Rand Merchant Bank provided project financing.

During construction, about 800 people from three host communities were employed, including significant numbers of young people and women, alongside local skills-development and procurement initiatives. Separately, Voltalia is deepening its relationship with International Finance Corporation (IFC), the World Bank Group's private-sector arm. IFC is proposing an investment of up to €120-million in preference shares in Voltalia Management International to finance or refinance solar PV and battery storage projects across Africa and other emerging markets. The two organisations also established a partnership in 2025 to develop renewable “power-to-mine” projects in African countries including South Africa.

2. Transparency and electricity subsidies clash in proposed electricity pricing overhaul.

The Department of Energy & Electricity has officially gazetted a new draft Electricity Pricing Policy (EPP 2026) for public comment. Driven by a 977% surge in the average Eskom electricity price since 2007, the policy aims to eliminate hidden system inefficiencies and establish long-term price certainty.

Key structural changes were said to include itemised billing separating actual energy generation from fixed network and retail costs - something that already exists. The policy expands and broadens Negotiated Pricing Agreements (NPAs) to help reindustrialise the economy by offering heavily subsidised tariffs to energy-intensive manufacturing sectors such as smelters, without clearly disclosing the funding mechanism.

The EPP also proposes a dramatic expansion of Free Basic Electricity (FBE) for indigent households, raising the monthly allocation from 50 kWh to between 200 and 300 kWh, while increasing FBE penetration from about 20% of indigent households to all qualifying indigent households. Minister Kgosientsho Ramokgopa asserts this will not burden the fiscus, revealing that the existing R21-billion annual Treasury allocation is routinely misdirected by municipalities to cover operational pressures like salaries. The state plans to bypass municipal gatekeepers entirely, deploying national databases and preloaded smart meters to route FBE support directly to consumers.

However, political editors like Carol Paton from News24 caution that the announcement by the Minister relied on “smoke and mirrors” and pre-election, attention-grabbing rhetoric. Critics note that NERSA already has rules to prevent municipalities from passing on excessive technical losses, capping them between 5% and 12% - meaning the core pricing framework remains largely unchanged.

Ramokgopa's promise to increase and widen FBE dramatically within the exact same R21-billion financial envelope is also widely viewed as a political sleight of hand with no transparent funding mechanism disclosed. Ultimately, sector analysts maintain that because no binding timelines have been set, the policy remains an aspirational document that will require rigorous, lengthy public and NEDLAC consultation and updates well into 2027.

3. Private renewable-energy investment accelerates across Southern Africa.

South Africa's mining groups are expanding private power procurement, with new solar capacity advancing and forecasts pointing to a different generation mix. Reuters reported that Anglo American, Sibanye-Stillwater and Exxaro are accelerating renewable-energy investment to cut costs, improve energy security and reduce emissions. Anglo's Envusa Energy joint venture with EDF power solutions is already supplying 520 MW and has a 1.5 GW pipeline, while Sibanye has contracted 835 MW and expects renewables to meet about 64% of its South African energy demand by end-2028. Exxaro's Cennergi is targeting 1.6 GW of installed capacity by 2030.

Meanwhile, SolarAfrica reached financial close on the third 114 MW component of Phase 1 of its SunCentral development between Hanover and De Aar. The three facilities total 342 MW, forming part of a planned 1 GW solar-wheeling hub supplying multiple commercial and industrial customers. SunCentral 1 has now been completed and energised, and the associated R1.35-billion Aquila Main Transmission Substation, built in a collaborative partnership led by SolarAfrica and South African engineering firm Proconics NewFields, has been handed over to Eskom and the NTCSA.

Looking further ahead, Aurora Energy Research forecasts renewables could supply 88% of South Africa's electricity by 2060, requiring more than 120 GW of new capacity as over 30 GW of ageing coal generation retires.

Regionally, Globeleq and Lunsemfwa Hydro Power Company commissioned Zambia's first solar-hydro hybrid plant, combining 27 MWp of solar PV with 56 MW of hydropower to conserve water during daylight hours for evening peak generation. The developments indicate a clear trend: private capital, corporate PPAs, wheeling and hybrid renewable projects are increasingly driving electricity investment across Southern Africa.

4. South Africa's private renewable energy pipeline expands amid tracking challenges.

The National Energy Regulator of South Africa (NERSA) registered 124 new private sector generation facilities greater than 100 kW during the first quarter of the 2026/27 financial year. These newly registered projects represent a combined capacity of 804 MW and carry an estimated total investment value of R20.2-billion.

Technology choices remain heavily skewed toward solar PV systems due to the country's abundant solar resources. Specifically, NERSA approved 122 solar PV projects, totalling 236 MW across all nine provinces. The remaining capacity comes from two major wind facilities in the Northern Cape and Mpumalanga, adding 568 MW.

Geographically, the Northern Cape leads economic metrics, securing R11.93-billion in estimated investments for 440 MW of generation capacity. Infrastructure delivery is split across networks: 63 facilities connect to municipal grids, while 61 projects tie directly into Eskom's national network.

Regulatory efficiency has improved, with processing timelines averaging just ten working days per application. Cumulatively, NERSA has registered 2692 electricity facilities since the inception of the current framework in 2018, bringing total potential capacity to 21.9 GW with an estimated total investment pipeline of R452.9-billion.

However, NERSA admitted it lacks the formal mechanisms or tracking systems required to monitor which registered private projects successfully transition from paper approval into operational grid-tied realities. Additionally, there is no legislated deadline mandating when a developer must build their registered plant. As such, some caution should be exercised in evaluating the NERSA registration data for embedded generation greater than 100 kW, also noting that small-scale embedded generation less than 100 kW does not require registration with NERSA, and the significant majority of such installations remain unregistered with both Eskom Distribution and municipal electricity distributors.

5. Scathing SCA judgment finds Eskom breached environmental obligations at Kusile.

The Supreme Court of Appeal (SCA) has delivered a severe rebuke to Eskom and environmental regulators over years of water pollution associated with the construction and operation of Kusile power station in Mpumalanga, labelling Eskom's non-compliance as “egregious”. In a judgment handed down on 14 August 2026, the SCA partially upheld an appeal by neighbouring swine genetics producer Topigs Norsvin SA, overturning a 2024 Pretoria High Court dismissal.

The court found that Eskom had failed to comply with several conditions of Kusile's environmental authorisations and water-use licences, while the departments of Water & Sanitation and Forestry, Fisheries & the Environment failed to enforce compliance. The judgment records that monitoring reports were not produced, were late, or contained “glaring deficiencies or scientific flaws”, while many commitments made by Eskom to address non-compliance were not fulfilled.

Eskom itself did not deny that Kusile's operations had negatively affected downstream water resources. The SCA declared that Eskom's failure to take reasonable measures to minimise and rectify pollution breached its statutory duties, and that the resulting non-compliance was unconstitutional and infringed the environmental right in Section 24 of the Constitution.

Eskom and its current board must file a detailed, sworn action plan within 30 days, identifying corrective measures, responsible officials and implementation deadlines. Within 60 days, Eskom must report under oath on implementation and explain any remaining non-compliance. The two responsible directors-general must, within 75 days, report on enforcement measures contemplated against Eskom.

The court also ordered Eskom to pay Topigs' legal costs, including two counsel and reasonable expert costs. The ruling adds another layer of controversy to the 4800 MW Kusile project, completed years late and massively over budget at an estimated cost of about R233-billion, and underscores that security of electricity supply does not displace the utility's statutory and constitutional environmental obligations.

6. Eskom procurement scandals persist as chairman receives engineering accolade.

Eskom's continuing procurement and corruption problems were thrown into sharp relief last week as chairman Mteto Nyati accepted an honorary fellowship from the South African Academy of Engineering for his contribution to “engineering-led institutional renewal and national development”. The accolade came as Eskom disclosed fresh governance failures in fuel procurement.

Its investigation into a controversial R21-billion diesel contract for Ankerlig found about R3-billion in payments made outside contractual terms, while Eskom also revealed R38-billion in irregular payments under earlier diesel contracts. The utility insists independent verification found no diesel missing and says the irregular payments did not necessarily represent financial losses.

The findings followed amaBhungane reporting that Eskom paid hundreds of millions of rand for diesel recorded as “received” before it had physically reached Ankerlig, with roughly 40-million litres, worth about R1-billion, still not delivered to the plant by end-June 2026. Eskom says the fuel is in storage or available on demand.

Separately, Eskom has restricted 101 suppliers, including implicated directors and owners, from doing business with it for up to ten years following disciplinary processes. A former Eskom buyer was also convicted in August 2026 of fraud and money laundering involving R8.5-million in tenders awarded to companies linked to her boyfriend and associates.

Eskom has now openly disclosed that it is seeking specialist investigators as spies to infiltrate criminal syndicates involved in coal and diesel theft, coal-quality manipulation, fraud and corruption, saying internal resources are insufficient to counter increasingly sophisticated, organised crime.

Nyati said he accepted the fellowship on behalf of Eskom's board, executives and employees, crediting them with the utility's operational turnaround. The contrasting developments nevertheless underline the continuing challenge of matching improved generation performance with robust procurement governance and accountability.

7. Joburg settles Eskom debt, but financial and service-delivery crisis remains.

With no clarity as to the source of the funds, City of Johannesburg has settled R5.26-billion in overdue electricity debt to Eskom, averting threatened power-supply interruptions, but mounting evidence points to a much deeper financial, governance and infrastructure crisis across the metro and City Power.

Eskom confirmed receipt of the final payment on 21 August 2026 and withdrew the administrative process that could have resulted in interruptions to electricity supplied to parts of Johannesburg. The arrears had accumulated amid a long-running billing dispute between the City and Eskom.

However, Johannesburg's broader finances remain precarious. A new Centre for Development & Enterprise report entitled Joburg's Broken Budget says unpaid municipal bills climbed from about R15-billion in 2014/15 to nearly R72-billion in 2024/25, while infrastructure investment fell about 50% in real terms over the decade and almost 70% per resident. The CDE describes the City's budget as increasingly “disconnected from reality”.

City Power is simultaneously battling ageing infrastructure, electricity theft, illegal connections and prolonged outages. In August, some north-western Johannesburg residents endured power interruptions lasting up to seven days, compounding associated water-supply disruptions.

Governance concerns also persist. News24 reported that contractor and pastor Witness Mazanga accumulated a R31.2-million property portfolio while companies linked to him received about R500-million in City Power contracts, some of which City Power itself has alleged were fraudulent or irregular.

Johannesburg's deterioration has now become a national economic concern. Government and organised business have included the metro as a focus area under Phase III of their partnership, with business pledging resources and expertise to help stabilise the country's largest economic centre. Settling Eskom's arrears removes an immediate threat but does not resolve the underlying problems of weak revenue collection, infrastructure decay, electricity losses and governance failures.

8. Gas, helium and hydrogen projects advance as SA's fuel-security risks persist.

South Africa's gas and liquid-fuels sector have seen a cluster of significant developments over the past fortnight, spanning hydrogen, helium and LNG production, upstream gas development, jet-fuel supply risks and changes in the downstream fuels market.

Hive Hydrogen says its planned $5.8-billion green hydrogen and ammonia project at Coega is progressing well, with construction potentially starting in 2027 and commissioning targeted for December 2029. The project is designed to produce one-million tonnes of green ammonia a year.

Meanwhile, Renergen's Tetra4 subsidiary has restarted commissioning of the Phase 1 liquid-helium plant at its Virginia Gas Project in the Free State, following engineering optimisation. New owner ASP Isotopes says first commercial helium deliveries are targeted for September 2026, alongside existing LNG production. Phase 1 is designed to produce about 2500 GJ/day of LNG and 70,000 cubic feet/day of liquid helium, while a much larger Phase 2 remains planned.

Separately, Kinetiko Energy's South African subsidiary Afro Energy secured an Australian $1.26-million “cooperation fee” from Mulilo Newcastle Wind Power, helping clear overlapping land-use issues and advance its proposed Phase 1 gas-production cluster in Mpumalanga.

In the liquid-fuels market, airlines faced renewed concern over jet-fuel availability after planned maintenance at the Natref refinery was compounded by a technical problem, prompting carriers to secure contingency supplies and highlighting South Africa's reduced domestic refining resilience.

A major ownership change is also progressing in the downstream sector. Abu Dhabi's ADNOC Distribution is taking over Shell Downstream South Africa, with Reatile Group set to acquire a minority stake and become ADNOC's B-BBEE partner in the business.

The developments detailed above indicate both opportunity and vulnerability: new domestic gas, helium and hydrogen projects are advancing, while fuel-security concerns persist as South Africa becomes increasingly dependent on imported refined products.

9. Government / Business partnership shifts from reform to growth in Phase III.

Government and organised business have launched Phase III of their partnership, shifting the emphasis from crisis stabilisation and structural reform towards faster economic growth, investment and job creation.

President Cyril Ramaphosa and Discovery CEO Adrian Gore, a BUSA vice-president and B4SA business co-convenor of the partnership, launched the new phase in Johannesburg on 20 August 2026. Its immediate ambition is to lift GDP growth above 3% and contribute to creating one-million additional jobs by 2030.

Phase I, launched in 2023, concentrated on stabilising three acute constraints threatening the economy: electricity supply, freight logistics, and crime and corruption. Phase II, launched in October 2024, moved towards accelerating structural reforms and operational improvements in these areas, while adding youth employment as a fourth focus.

Progress included sharply reduced loadshedding, improved rail and port performance, electricity and logistics reforms, and South Africa's removal from the FATF grey list.

Phase III retains these core workstreams but adds a targeted growth agenda around infrastructure, mining, agriculture and agro-processing, and tourism. Priorities include increasing mineral exploration through the new mining cadastre, expanding agricultural production and export markets, improving visa processing and air access for tourism, and mobilising greater public-private infrastructure investment.

Energy and logistics reforms remain critical enablers, including expanding electricity transmission, operationalising the competitive wholesale electricity market and increasing private-sector participation in rail and ports. Johannesburg's deteriorating infrastructure and governance have also been identified for focused government-business intervention.

Ramaphosa characterised the evolution succinctly: Phase I was about stabilisation, Phase II about reform, and Phase III about growth. For business, the test will now be whether reforms translate into investment, expanding productive capacity and employment at sufficient scale to materially change South Africa's economic trajectory.

10. Tons of dead sardines and a turbine trip take down the Koeberg nuclear power plant.

Eskom's Koeberg nuclear power station went completely offline at 01h00 on 27 August 2026 after a turbine trip on Unit 1, just days after masses of dead sardines clogged its seawater intake and forced the reactor to run at reduced output.

Eskom said plant conditions remained stable, nuclear safety was not compromised, and there was no risk to workers, the public or the environment. The cause of the turbine trip is under investigation.

The shutdown came less than 24 hours after Eskom had restored Unit 1 to 70% output, after output had been cut to 50% on 21 August when a cooling-water pump automatically shut down when dead sardines and other marine material accumulated at the seawater intake.

The fish deaths form part of a wider mass sardine mortality event along the Western and Southwestern Cape coast. Laboratory sequencing detected pilchard herpesvirus in sampled fish. Eskom says there is no evidence linking the die-off to Koeberg's nuclear operations.

With Unit 2 already offline for planned maintenance and testing, the Unit 1 trip left South Africa's only nuclear power station producing no electricity. Koeberg's two units have a combined capacity of about 1900 MW and normally supply around 5% of national electricity.

The latest problems come amid heightened scrutiny of Koeberg after four safety-related events during Unit 2 maintenance between late June and mid-July, involving ventilation failures, airborne contamination and radiation-monitoring alarms. Eskom, the Department of Energy & Electricity (DEE) and the National Nuclear Regulator (NNR) said these incidents were contained and rated Level 0, with no safety significance.

Eskom said the loss of Unit 1 while Unit 2 was also down posed no threat to national supply because sufficient generation capacity was available and the grid remained stable.