15 September to 28 September 2025

Roundup of major energy and electricity news and developments

1. Supreme Court of Appeal blocks 3000 MW G2P plant over environmental flaws.

South Africa's plans to add large-scale gas-to-power (G2P) capacity have hit a major setback after the Supreme Court of Appeal (SCA) overturned the environmental authorisation for Eskom's proposed 3000 MW G2P plant in Richards Bay. The court upheld appeals lodged by environmental groups, who argued that the authorisation process was flawed and failed to adequately assess climate, health and community impacts. The decision follows years of controversy around the project, which was envisioned as a key anchor in South Africa's “just energy transition” and a source of dispatchable power to stabilise the grid. Civil society groups, including groundWork and the South Durban Community Environmental Alliance, welcomed the ruling, saying it underscored the need to prioritise renewable energy and storage instead of locking the country into long-term fossil fuel commitments. Eskom, however, said it remains committed to developing G2P solutions, calling them a necessary part of South Africa's evolving energy mix. The utility emphasised that G2P plants could provide flexible capacity to back up renewables, but acknowledged that alternative sites and revised environmental processes may now be required. The setback comes as government grapples with balancing energy security, climate commitments and affordability. South Africa has pledged to reduce its CO2e emissions before 2035 under its Paris Agreement obligations, while also seeking to reduce rolling blackouts that have plagued households and industry. Analysts warn that the ruling could delay investment in new generation capacity at a time when Eskom's coal fleet is declining and grid constraints hinder renewable projects. Whether the Richards Bay project is revived, redesigned or abandoned will serve as a litmus test for the role of gas in South Africa's power future.

2. Ramokgopa promises to end “load reduction” in 18 months; seeks community buy-in.

Energy & Electricity Minister Kgosientsho Ramokgopa has pledged to eliminate “load reduction” in South Africa within the next 12 to 18 months - provided communities cooperate in legalising their electricity connections and curbing illicit electricity theft and non-payment. Load reduction occurs when electricity is intentionally cut to overloaded local networks (especially in townships and poor areas) to protect transformers and local infrastructure. It is distinct from national load shedding, which addresses generation availability shortfall. Ramokgopa said that over 1.69-million households - affecting about 8.5-million people - currently experience these cuts. The minister emphasised that these reductions often disproportionately affect low-income areas, giving the impression of penalising the poor. A core pillar of the plan is the accelerated rollout of smart meters. These will help isolate non-paying or illicitly connected users without penalising compliant households on the same transformer. Ramokgopa also flagged plans to upgrade distribution infrastructure, tackle illegal connections, expand electrification, and reform the Free Basic Electricity (FBE) framework to ensure indigent households get the FBE due to them. Eskom CEO Dan Marokane confirmed recently that while some 10-million indigent households across South Africa were eligible for FBE, only about 2-million receive this poverty relief measure, with municipalities diverting the money received from National Treasury for FBE, and using this for purposes never intended. However, the minister stressed that success of his plan to end load reduction hinges on community cooperation. In areas of resistance, he said the timeline may slip toward the 18-month upper bound. Observers note that while the commitment is bold, it faces significant hurdles - from funding and technical capacity to overcoming entrenched illegal electricity networks and institutional capacity constraints. If Ramokgopa's timeline holds, the shift could bring relief to millions who still face localised power cuts even as national load shedding eases.

3. Relief in the works as ferrochrome smelters clamour for favoured electricity prices.

South Africa's ferrochrome smelters are edging closer to securing favoured tariff relief, as Minister Ramokgopa confirms that bespoke electricity packages are being finalised that go beyond existing Negotiated Price Agreement (NPA) limits. During a briefing on 26 September 2025, Ramokgopa revealed that Cabinet had granted approval to negotiate “significant concessions” outside the scope of the standard NPA regime governed by NERSA. Under current NPA rules, qualifying industrial users must consume at least 80 GWh per year and maintain a load factor above 70% to benefit from discounted tariffs. But the electricity package for ferrochrome is likely to be more flexible, tailored to the sector's high energy demands and viability concerns. In a separate development, Glencore's ferrochrome unit has sought direct engagement with Ramokgopa to avert further smelter closures. CEO Japie Fullard is scheduled to meet the minister to negotiate allocation of additional power under the proposed relief package. Glencore argues that even existing NPAs have failed to keep its local smelters globally competitive, leading to the mothballing of multiple furnaces and looming job retrenchments. Industry leaders and labour unions say the stakes are high: the sector has already shed much of its capacity, even while global demand for ferrochrome is rising. Smelters are watching closely for the finalised package, which is expected to stipulate how much electricity each player may receive, how mothballed capacity can be restarted, and how disruptions may be managed to balance grid stability. If successful, this intervention could preserve jobs and restore some of South Africa's ferrochrome production edge. But electricity discounts in special pricing deals to ferrochrome and aluminium smelters result in increased costs to standard electricity customers, taxpayers and the remaining economy. Questions remain as to whether the relief can be sustained in a power-constrained, high-cost environment.

4. NERSA approves four new electricity trading licences amid Eskom legal challenge.

On 25 September 2023, the energy regulator, NERSA, approved the latest batch of four new electricity trading licence applications - by Solis Energy Trading, Investec Bank, SOLA TradeCo and LinkSolar. While initially indicating intention to oppose at least some of these, Eskom ultimately did not object, as evidenced by the cancellation of NERSA public hearings after no stakeholders or members of the public registered to make representation to NERSA in respect of these applications. For more than a decade, private sector electricity traders have operated in South Africa with Eskom's acceptance. In 2009, PowerX was the first licenced electricity trader, followed by at least four further licenced traders - Energy Exchange of Southern Africa (EXCA), Envusa Energy, Enpower Trading and Etana Energy. There were no court reviews, no objections, and it was business as usual. Then, in 2024, after five new electricity trader licence applications - by Green Electron Market, GreenCo, CBI Electric Apollo, NOA Energy Trading and Discovery Green - suddenly, Eskom changed tack. It lodged objections against all five applications during the NERSA hearings. However, NERSA subsequently granted the above five trading licences, together with an import/export licence to GreenCo - the first of its kind. Eskom subsequently filed a High Court review application in efforts to overturn these specific decisions by NERSA. With the latest four trader applications unopposed, Eskom's inconsistencies are startling and unexplained. If it truly believed traders undermined its tariffs, cross-subsidies or exclusive rights, it would have opposed all licences. Instead, Eskom opposed some while tolerating others. Some observers believe this reveals Eskom's legal posture as unprincipled and opportunistic - a strategy seemingly designed to cherry-pick and oppose the competitors it fears most.

5. Renewables powerhouse launched, eyes 6 GW by 2030 and SADC expansion.

A newly consolidated renewables major, Anthem, has officially launched in South Africa with bold ambitions: to grow its capacity to 6 GW by 2030 and to expand into Southern Africa. Anthem is the product of a merger between African Clean Energy Developments (ACED) and EIMS Africa, backed by existing majority shareholder AIIM's IDEAS Fund, with new stakes held by Mahlako Energy Fund and Norfund. Norfund - the Norwegian government's development finance institution - has injected R1.5-billion in equity into the platform, underscoring strong international investor confidence in South Africa's renewable energy market. At launch, Anthem holds a secured pipeline of 2.7 GW in operation, under construction or near financial close, which already equates to roughly 12% to 15% of South Africa's independent power producer (IPP) market. Its broader development pipeline is estimated at around 11 GW of projects. Anthem intends to deploy a mix of solar PV, wind, small hydro and battery energy storage (BES) to support grid balancing. While the company says it will remain a pure-play IPP focused on project development and operations rather than becoming a direct aggregator or trader, it has left open the possibility of seeking a trading licence if required under the forthcoming South African Wholesale Electricity Market (SAWEM). Geographically, Anthem's ambitions go beyond South Africa. The firm is already active in Eswatini and plans to enter other Southern African Development Community (SADC) markets. Challenges lie ahead: grid constraints, regulatory risk, capital costs, and the need to coordinate with Eskom and transmission infrastructure development are key. Yet, Anthem's launch signals a maturing renewable sector coming of age in Southern Africa.

6. Multiple wind projects gain momentum in South Africa as wind sector accelerates.

South Africa has seen a flurry of movement in the large, private PPA, wind energy sector. In the last two months, three planned wind farms - totalling 600 MW - in Beaufort West and Laingsburg in the Western Cape, were registered with NERSA. This follows progress on the 380 MW Overberg wind farm developed by Red Rocket and located near Swellendam in the Western Cape. Phase 1 of the Overberg wind farm reached financial close in March 2025, and Phase 2 commenced construction in June 2025. In April and May 2025, the three 240 MW Nuweveld wind farm projects in the Upper Karoo region of the Western Cape, developed by Red Hat Energy, were registered with NERSA as private sector projects. The three Nuweveld projects had earlier been unsuccessfully offered in Bid Window 6 of the REIPPPP public procurement programme. Meanwhile, elsewhere in the Karoo, some 30 km south of Beaufort West, the 1000 MW planned Carissa wind farm comprising 154 wind turbines each 280 m high, has received environmental authorisation. Carissa is being developed by AMDA Developments, the South African subsidiary of a major Spanish renewable energy company, AMDA Energia. The facility is said to include plans for two battery energy storage (BES) systems with a total capacity of some 10 GWh. The Carissa project is said to be part of a wider power supply to a R105-billion, 1-million tonnes per annum, green ammonia plant planned for the Port of Coega in the Eastern Cape. This project is being developed jointly by UK company Hive Energy and the BuiltAfrica Group. These wind energy developments signal renewed momentum in a space challenged by grid constraints and regulatory uncertainty.

7. Surge in solar PV deployments: residential, commercial, industrial, mining and utility.

Over the past two weeks, South Africa's solar PV sector has witnessed notable activity across multiple sectors - from publicly procured utility-scale projects, to private wheeled power and energy trading, ground mounted behind-the-meter generation, and distributed commercial and residential rooftop systems. In the public utility space, the 120 MW Doornhoek solar PV project near Klerksdorp in North-West province has installed 81,000 solar panels in a REIPPPP Bid Window 6 procurement developed by EMEA Power. The plant is scheduled to start commercial operation by the end of 2025. In the private PPA wheeled power space, momentum continues for the 506 MW solar PV and BESS cluster being developed by the NOA Group in Free State to supply private customers. The 157 MW Khauta West solar PV facility is expected to start commercial operation in Q4, 2026, while the larger 349 MW Khauta South facility will follow in Q1, 2027. In the industrial arena, Terra Firma has commissioned a 29 MW, behind-the-meter, carport and ground mounted solar PV system at the Maxion Wheels manufacturing facility in Johannesburg. And in the distributed space, total private sector solar PV capacity in South Africa has surged to 7,300 MW, now eclipsing the combined capacity of South Africa's publicly procured independent power producer (IPP) fleet. SAPVIA reports that In Q1, 2025, the country added 928 MW of solar PV across REIPPPP and non-REIPPPP projects, bringing cumulative installed solar capacity to an estimated 9,457 MW. These developments reflect a maturing solar PV market that is diversifying across scales. The industrial and rooftop segments relieve pressure on the grid by shifting load toward decentralised generation, while utility-scale and wheeling projects contribute bulk power. However, issues such as grid congestion, permitting delays and unnecessary compliance red-tape remain ever present impediments.

8. Renergen and Springbok Solar reach settlement, coexistence deal ends legal dispute.

Renergen and the SOLA Group's 150 MW Springbok Solar Power Plant have resolved a protracted land-use and rights dispute by signing a full settlement and coexistence agreement, clearing the way for both their gas and solar projects to proceed in the Free State near the town of Virginia. The dispute stemmed from overlapping claims over land use under the Mineral and Petroleum Resources Development Act (MPRDA). Renergen's subsidiary Tetra4 held a production right for natural gas, while Springbok Solar claimed surface rights to build a large solar PV plant on that same land. Under the new agreement, both parties will coordinate development via clear protocols and ongoing consultation, and electricity generation at the Springbok Solar plant has commenced. Renergen retains its exclusive rights in portions of the gas production area outside the involved solar footprint, while Springbok Solar may develop and operate its plant within the agreed zone. The settlement ends the appeal invoked by Springbok Solar and avoids further costly litigation. Oversight by the Department of Mineral & Petroleum Resources will still apply, and both companies have committed to adhere to all regulatory and legislative requirements for any future expansion. With the dispute concluded, the projects can proceed more securely. Renergen and Springbok Solar say the agreement demonstrates that natural gas and renewables can co-exist when rights, consultation, and regulation are respected. This resolution removes a key legal overhang for both firms and helps reinstate at least some additional investor confidence in South Africa's energy transition.

9. Vodacom's virtual wheeling project completed amid obstacles by Eskom for traders.

Following successful piloting over the past two years, Vodacom South Africa has officially gone live with the country's first operational virtual wheeling project, marking a significant milestone in renewable energy access amid regulatory teething-problems. On 3 September 2025, Vodacom, in partnership with SOLA Group and using its digital platform subsidiary Mezzanine, activated a power purchase agreement (PPA) that allows sourcing of solar energy from SOLA's Virginia plant in the Free State, reconciling supply with Vodacom's distributed consumption across more than 15,000 low-voltage sites spread over 168 municipalities. The project follows NERSA's introduction of a national wheeling framework in March 2025 that aims to standardise rules for third-party access to public electricity networks. However, while firms like Vodacom are benefiting, licensed electricity traders remain excluded from participating in Eskom's Virtual Wheeling Platform (VWP) - a restriction Eskom imposed pending the finalisation of electricity trading rules by NERSA. Traders argue that this exclusion amounts to anti-competitive behaviour, since many traders were expecting to aggregate generation from IPPs and serve multiple off-takers under many-to-many wheeling models. The lack of clarity around when the trading rules will be finalised has fuelled uncertainty. Looking ahead, Vodacom's project offers a blueprint for smart metering, digital aggregation, reconciliation of power generated versus consumption, and a wheeled energy refund system. But for the system to scale up, several things are needed, such as transparent trading rules so traders may participate fairly; robust metering and time-of-use data systems; tariff and billing rules that support virtual wheeling; and addressing municipal arrear debt to Eskom. Once trading rules are promulgated - expected by mid-2026 or possibly sooner - the platform could open up to many more businesses, significantly expanding access to renewable energy and lowering barriers for off-site clean power.