Electricity market reform in South Africa has reached what industry leaders describe as a “decisive implementation phase and moment of truth”, with the South Africa Electricity Traders Association (SAETA) publishing a detailed ten-point action plan to translate policy intent into a functioning competitive market. The report, Policy to Power: Ten Actions to Deliver Green, Accessible and Secure Electricity, prepared by financial services and capital markets research group, Krutham, argues that while the amended Electricity Regulation Act and the Energy Action Plan have set the direction of travel, execution risks now threaten momentum. It calls Eskom's unbundling “the most important economic reform since 1994” and positions the launch of the South African Wholesale Electricity Market (SAWEM) as central to unlocking private capital and restoring long-term security of supply. Among the ten priority actions are: publishing a Cabinet-endorsed reform roadmap; finalising the Electricity Pricing Policy; strengthening NERSA and the Department of Energy & Electricity; accelerating transmission expansion; reforming the municipal distribution industry; finalising trading rules; harmonising wheeling frameworks; and enabling cross-border trade. The report emphasises that traders are already playing a material role in crowding in private generation investment, with gigawatts of renewable capacity reaching financial close outside government procurement programmes. However, fragmented wheeling rules, regulatory delays and uncertainty around Eskom's end-state risk undermining investor confidence. Recent commentary across the business and energy media echoes this theme: reform intent is clear, but delivery discipline, institutional coordination and regulatory certainty will determine whether South Africa secures a competitive, investable multi-market electricity system - or stalls at partial transition. The next 12 to 24 months, SAETA argues, will define whether reform delivers growth, affordability and resilience at scale.

On 18 February 2026, the Gauteng Division of the High Court delivered a landmark judgment in Sibanye Gold & Others v Eskom Holdings & Another with significant implications across South Africa's electricity sector. The court set aside Eskom's refusal to grant wayleave access for Sibanye's planned 50 MW behind-the-meter solar photovoltaic (PV) project at its Kloof Mine, finding the refusal unlawful, irrational and in bad faith. The dispute centred on Sibanye's attempt to connect a self-generation plant to its own substation via a 6 km line across its own land traversing an Eskom servitude. Eskom declined the wayleave access in December 2023 citing safety, network integrity and regulatory compliance concerns - positions that, according to the judgment, lacked substantiation and evidentiary support. Under the Promotion of Administrative Justice Act (PAJA) and principles of legality, the court found Eskom's actions to be tainted by ulterior motives, including a pursuit of commercial self-interests - notably revenue protection - rather than legitimate safety or technical risk mitigation. The utility misapplied its internal policies and engaged in procedural obfuscation inconsistent with statutory requirements. The court not only reviewed and set aside Eskom's decision, but in a rare remedy substituted the refusal with an order compelling Eskom to grant the wayleave and pay costs, emphasising the right of customers to lawful access and administrative fairness. The implications extend beyond Sibanye's project. Energy analysts say the judgment reaffirms the rule of law, regulatory certainty and customer autonomy in South Africa's electricity market, particularly at a time when embedded generation, wheeling frameworks and competitive access are central to the energy transition. Sector leaders now expect this precedent to shape future interactions between incumbents, independent generators and investors. Eskom has acknowledged the judgment and is reviewing the implications with its legal advisers.

In a decisive policy intervention during the State of the Nation Address (SONA) on 12 February 2026, President Cyril Ramaphosa overturned a revised Eskom unbundling proposal supported by Electricity & Energy Minister Kgosientsho Ramokgopa, thereby affirming that South Africa will establish state-owned transmission company independent of Eskom to own and operate the national grid and the electricity market. Ramaphosa's announcement directly contradicts a December 2025 proposal in which a wholly-owned Eskom subsidiary would retain transmission asset ownership while a separate Transmission System Operator (TSO) ran the market - a plan that had caused alarm among organised business and potential investors concerned about conflicts of interest and weakened reform credibility. Under the President's direction, the new transmission entity will own transmission assets outright, replacing expectations that Eskom Holdings would retain control via its National Transmission Company of South Africa (NTCSA). A dedicated task team under the National Energy Crisis Committee (NECOM) has been appointed to develop clear timeframes for phased implementation, with an interim report due within three months. Business leaders welcomed the clarity, noting that independent ownership is critical to restoring investor confidence, unlocking private sector capital for grid expansion, and supporting broader electricity market reform. Other political parties such as the Democratic Alliance have stressed the need for concrete deadlines to ensure that “independent transmission” is more than a political pledge. The implications are significant. Full separation of transmission from Eskom's operational and financial liabilities is expected to accelerate competition, enable more efficient grid management, and reduce the historic bottleneck that has constrained private generation and reform efforts. But success will hinge on executing the transition with technical and regulatory precision, avoiding new uncertainties in South Africa's ongoing energy transformation.

South Africa's domestic renewable energy manufacturing base has expanded with the operationalisation of Ener-G-Africa (EGA)'s new solar PV module assembly facility in Paarl, positioning the company alongside ArtSolar and Seraphim Solar as one of three active panel manufacturers in the country. The launch event, attended by installers, distributors, industry stakeholders and media, marks a significant step in strengthening localised supply chains at a time of shifting global solar trade dynamics. With China's trade policies evolving from April 2026 through a reduction in export incentives and rebates for Chinese solar PV module manufacturers and exporters, countries are accelerating domestic production to bolster localisation and industrial resilience. EGA's Paarl facility has an annual assembly capacity of approximately 150 MW per annum and is consciously focussing on residential, commercial, agricultural and smaller industrial markets rather than utility-scale projects. EGAs locally made range includes 20 W, 45 W, 150 W, 265 W, 360 W and 545 W solar PV modules incorporating monocrystalline PERC cells, with TOPCon cells and bifacial modules available on request. According to CEO Andre Moolman, the company aims to provide installers and distributors with supply certainty, quality assurance and responsive after-sales support as Africa's solar market matures. Recent Africa Solar Outlook findings suggest that distributed residential and commercial solar deployment across the continent has been materially under-reported, with installer-led growth driving much of the expansion. Against this backdrop, local manufacturing is increasingly framed as a hedge against global price volatility and supply disruptions. The entry of a third manufacturer signals renewed confidence in South Africa's downstream solar value chain. However, sustained competitiveness will depend on policy certainty, consistent demand and alignment with localisation frameworks under the country's broader energy-transition and industrialisation strategies.

Eskom's protracted delays and apparent reluctance to retrofit flue-gas desulphurisation (FGD) pollution control at its Medupi power station have thrust its environmental commitments into sharp focus, risking tension with the World Bank and intensifying scrutiny from stakeholders. The utility has released a draft Cost-Benefit Analysis (CBA) on FGD at Medupi for public comment, sparking debate over the future of the long-delayed retrofit project to reduce sulphur dioxide (SO₂) emissions. Submissions are open until 26 March 2026 and an online information session is scheduled for 10 March 2026. Medupi, one of South Africa's largest dry-cooled coal-fired power stations, was constructed with the understanding that SO₂ abatement technology would later be installed to comply with South Africa's Minimum Emission Standards (MES) and conditions attached to a US$3.75-billion World Bank loan. However, Eskom's recent CBA argues that the R383-billion lifetime cost of wet FGD at Medupi - the most effective technology - far outweighs the monetised health benefits of reduced SO₂ emissions. However, FGD plant remains standard practice for coal-fired power stations elsewhere in the world. Eskom, on the other hand, proposes alternative emission-reduction strategies, including an Air Quality Offset Programme, which it claims offers a markedly more favourable cost-benefit ratio. Critics, including independent analysts and environmental groups, counter that the utility's analysis underestimates FGD's health and social benefits and sidesteps the loan conditions agreed with international lenders. The unfolding public consultation could shape the future of Medupi's environmental compliance and influence broader debates about balancing environmental responsibility against costs and electricity affordability. Eskom's stance has already drawn concern from civil society and could complicate its relations with the World Bank if retrofit commitments are not honoured within agreed timelines.

Eskom and Minister of Energy & Electricity Kgosientsho Ramokgopa have announced a proposed new tariff framework of R0.62/kWh for struggling ferrochrome smelters, but key details remain vague, including funding arrangements and conditions attached to the deal. In a brief media statement issued on 27 February 2026, Eskom confirmed board support for a “framework towards a tariff of R0.62 per kilowatt-hour, with specific terms and conditions attached”, subject to acceptance by Glencore-Merafe and Samancor, and approval of the energy regulator, NERSA. No clear details were provided on the duration of the proposed arrangement, eligibility criteria, or the commercial terms and conditions that smelters must meet. The announcement follows a 12-month hardship intervention introduced in January 2026 at R0.88/kWh after smelters invoked hardship clauses under existing Negotiated Pricing Agreements (NPAs). While the earlier relief enabled limited production restarts, industry leaders warned that tariffs remained unsustainable at prevailing chrome prices. The proposed R0.62/kWh rate - about 30% of prevailing industrial tariffs - has been described by government as a potential “game-changer” to protect jobs and boost exports. However, the funding mechanism remains unclear. Eskom's statement emphasises the need to avoid unintended cost impacts on other customers, yet no explanation has been offered as to whether the discount will be absorbed by Eskom's balance sheet, offset through cross-subsidies, or supported fiscally. With National Treasury having indicated no dedicated budget allocation for smelter relief, attention now turns to Eskom's pending submission to NERSA, where detailed cost allocation and regulatory treatment will need to be clarified. The episode highlights broader tensions in electricity reform: how to balance industrial competitiveness, financial sustainability and tariff equity in a transitioning multi-market system.

South Africa's emerging electricity trading market gathered fresh momentum in February 2026, as new project announcements by licensed traders coincided with Eskom placing a hold on its legal challenge against the award of electricity trading licences by the energy regulator, NERSA, to five traders in South Africa. A subsidiary of Blu Label Telecoms, BluEnergy, has been granted an electricity trading licence by NERSA, positioning the group to expand into municipal and private-sector power supply. The move signals growing corporate appetite to participate directly in energy markets rather than rely solely on traditional utility supply. Meanwhile, Lyra Energy has secured private-sector offtake agreements for its inaugural 255 MW Thakadu solar PV project, demonstrating the maturing role of traders in aggregating demand and enabling projects to reach financial close outside government procurement frameworks. In a further sign of traction, NOA Group concluded an additional renewable energy offtake agreement with Sibanye-Stillwater, reinforcing the shift by energy-intensive corporates towards trader-facilitated renewable supply. Against this backdrop, Eskom confirmed it has suspended court proceedings challenging NERSA's decision to grant trading licences to five traders, following intences industry pressure and media scrutiny. The pause, reportedly agreed between Eskom, NERSA and the five licenced electricity traders, removed legal action for the time being, and has been welcomed by market participants concerned about investor confidence. While the Sword of Damocles held by Eskom still hangs over the heads of the traders if Eskom does not get its way in Trader Rules negotiations currently underway facilitated by NERSA, the stay of legal proceedings indicates that traders are increasingly shaping procurement, risk allocation and price discovery in South Africa's evolving multi-market electricity system. Whether the current regulatory truce holds may prove critical to sustaining private capital inflows and deepening competition in the months ahead.

A number of transmission infrastructure developments in Southern Africa were reported in the previous two weeks, with key new assets energised, cross-border links approved and private sector investment emerging alongside national builds. In South Africa, Anthem Energy has successfully energised the Gamma-B transmission substation on the Eskom network. The new facility provides critical evacuation capacity for up to 420 MW of wind power from projects in the region's expanding renewable energy zones. Industry stakeholders note this substation will help alleviate grid constraints that have impeded project commissioning and private investment. The project also illustrates growing collaboration between independent developers and the transmission utility to accelerate grid readiness for renewables. The broader transmission build challenge in South Africa remains significant. Analysts emphasise that systemic bottlenecks in transmission rollout continue to limit the country's ability to integrate utility-scale wind and solar, and that unlocking this latent capacity will be among the most consequential opportunities - and challenges - for the energy transition. Cross-border transmission progress was also evident this month. Namibia's cabinet formally approved a transmission interconnector project with Angola, designed to bolster bilateral trade in power and support Southern African Power Pool (SAPP) objectives. This linkage is expected to improve regional reliability and create additional pathways for renewable energy exports and imports across borders. Meanwhile, private sector participation in transmission-linked projects is emerging, with an EDF Group subsidiary energising a wind project that includes a privately built substation - reflecting a broader trend of mixed ownership models supporting grid expansion. Together, these developments indicate that scaling transmission infrastructure - from local substations to international interconnectors - is central to advancing generation rollout, enhancing energy security and enabling Southern Africa's transition to a more integrated electricity market.

Renewable energy momentum continued to build over the past two weeks, with major solar and wind projects reaching financial close, and commissioning and funding milestones across Southern Africa. Industry data indicates South Africa added approximately 1.6 GW of solar PV capacity in 2025, reflecting sustained private-sector deployment despite grid constraints. The Northern Cape again featured prominently. SolarAfrica secured R1.5-billion in funding for its 114 MW SunCentral 2 solar plant, while Mulilo reached financial close on its 219 MW Orkney solar PV project, reinforcing the role of trader and corporate offtake-backed projects in crowding in capital. On the wind front, EDF Power Solutions commissioned the 420 MW Koruson 1 wind cluster, one of the largest recent additions to South Africa's renewable fleet. An EDF subsidiary also announced the start of construction on a further wind project incorporating a privately built substation - highlighting increasing private participation in grid-linked infrastructure. Corporate decarbonisation remains a key driver. Northam Platinum secured an additional R2-billion in financing to advance its renewable energy programme, underscoring growing demand among energy-intensive industries for price stability and carbon mitigation. Regionally, smaller but symbolically important projects reached commercial operation, including the 4.6 MW Sandveld Solar Park in Botswana and Zimbabwe's 10.8 MW Glover's Solar Park Phase 1, signalling steady clean-energy rollout beyond South Africa. Collectively, the announcements point to a deepening renewable pipeline anchored in private capital, corporate offtake and hybrid project structures. However, transmission build-out and regulatory clarity remain critical to sustaining this pace of investment and ensuring projects translate into reliable grid-connected capacity.