South Africa has formally launched the first Request for Quotations (RFQ) for Phase 1 of the country's Independent Transmission Programme (ITP), opening the door to private investment in the national electricity grid for the first time. Announced to the media on 31 July 2025 jointly by the Ministries of Electricity & Energy and Finance, the RFQ invites private concessionaires to develop, finance, build and operate new transmission infrastructure in line with Eskom's Transmission Development Plan. Phase 1 includes 1164 km of 400 kV transmission lines in five corridors across four provinces, designed to unlock new grid capacity urgently needed for renewables integration. However, the project faced a major barrier: the poor credit standing of key state-owned off-takers like Eskom, which makes it difficult for bidders to raise debt without government guarantees to cover the risk of payment default by Eskom. To address this, government also announced the imminent launch of a new Credit Guarantee Vehicle (CGV) - a non-life insurance company - with an initial capital of $500m, aimed at crowding in private capital to replace and reduce sovereign contingent liabilities associated with government guarantees. While the launch of the CGV is timed for the first procurements of the ITP in mid-2026, the CGV is not technology specific, and will be expanded to provide credit guarantees to lenders for other public sector infrastructure projects where state-owned entities are off-takers. This marks a significant shift in government policy - from direct guarantees to risk-sharing mechanisms that bolster private sector confidence without ballooning government contingent liabilities. With the ITP RFQ now in progress and the CGV on track, the unbundling of the transmission sector, and expanding and modernising the South African grid through public-private partnerships, is starting to take shape.

South Africa has secured two major development finance institution (DFI) loans in late July 2025 to deepen ongoing energy-sector reforms under its Just Energy Transition Partnership (JETP). On 28 July 2025, Germany's KfW Development Bank finalised a €500m (~R10.4bn) concessional public policy loan to support energy-sector reforms. This is the third tranche of German policy financing - bringing total KfW lending under JETP to €1.3bn. Structured over 13 years with a three-year grace period and fixed interest of 4.31%, the funds aim to bolster institutional reforms, decarbonisation and private sector participation in clean energy investments. Shortly before that, the African Development Bank (AfDB) approved a $474.6m (~R8.5 billion) loan on 25 July 2025 to finance the Infrastructure Governance and Green Growth Programme (IGGGP) - also part of Phase 2 JETP support. The loan contributes to accelerating power-sector reforms, transport infrastructure modernisation, green hydrogen, EV manufacturing and broader inclusive growth pillars. These commitments form part of a coordinated $2.78bn DFI financing package, alongside $1.5bn from the World Bank, with contributions from JICA (~$200 million) and the OPEC Fund (~$150 million). Finance Minister Enoch Godongwana highlighted the strategic importance of these loans for restoring energy security, reducing reliance on coal, and supporting socio-economic transformation. The package includes social components prioritising job creation, especially for women and youth, through programmes such as expanded Social Employment Funds and skills development. By reinforcing public policy frameworks and attracting private investment, the combined DFI support aims to help South Africa overcome chronic energy bottlenecks and lay the foundations for a low-carbon, resilient energy system, aligned with the country's climate commitments and industrial growth aspirations.

Electricity trading in South Africa is surging ahead, with NERSA granting two new trading licences to Energy Market SA and Lyra Energy Trading, and two new import/export licences to Enpower Trading and SOLA Tradeco - signalling growing momentum in the liberalisation of the country's electricity market. This progress comes even as Eskom pursues a high-profile court challenge against five earlier trading licences issued by NERSA in 2024. Eskom argues that the Regulator failed to consult adequately on what it calls a “fundamental policy shift”, and proceeding with licensing of traders without the necessary framework of trading rules being in place. The utility also claims that traders are cherry-picking “Eskom's customers”. However, critics see the legal action as a regressive move, aimed at stalling competition and clinging to outdated monopolistic dominance. Energy experts and civil society have warned that Eskom's challenge threatens to stall and derail long-overdue reforms intended to open the market to private investment and innovation. Meanwhile, licensed traders are pressing ahead. EDF Power Solutions, a partner with Anglo American in electricity trader, Envusa, announced plans to add 500 MW of low-carbon capacity annually. Discovery Green has secured a 10-year renewable energy supply agreement with Southern Sun. Envusa's 520 MW Koruson 2 project is nearing commercial operation. Industry players say NERSA's evolving regulatory framework - along with the new licensing activity - marks a turning point for the electricity sector, with traders providing opportunity to commercial, industrial and mining customers to hedge at least part of Eskom's ever more expensive, high carbon electricity with lower cost green energy. Despite some legal uncertainty, the direction is clear: electricity trading is no longer a concept on paper, but an emerging reality reshaping South Africa's power landscape from top to bottom.

Three pet projects of the former Department of Minerals & Energy's so-called Risk Mitigation IPP Procurement Programme (RMIPPPP) have finally been scuttled. On 31 July 2024, the North Gauteng High Court ordered the generation licences issued by the National Energy Regulator of South Africa (NERSA) to Turkish-led Karpowership SA to be withdrawn, marking the definitive collapse of the controversial Karpowership deal that was announced by Minister Gwede Mantashe on 21 March 2021. The projects were generally considered “dead in the water” after Eskom withdrew grid access in early 2024 after Karpowership failed to reach financial close despite repeated unexplained indulgences and extensions granted by Minister Mantashe. However, NERSA would not withdraw its unlawfully granted generation licences - despite glaring procedural and legal flaws raised by civil society groups OUTA and The Green Connection. OUTA therefore felt it necessary to continue its legal action to conclusion, as NERSA clearly failed to follow due process and showed disregard for its legal obligations. Crucially, NERSA never once challenged, answered or repudiated any of the detailed arguments put forward in OUTA's court application since it was launched in 2021. Instead, the Regulator finally capitulated after three years of delay without filing a single answering affidavit. The court not only ruled the licences invalid but also ordered NERSA to pay OUTA's costs - a stinging indictment of regulatory conduct. This judgment is more than just a legal victory for civil society; it exposes the regulatory failure at the heart of the Karpowership saga. NERSA's silence and subsequent capitulation speak volumes about the lack of accountability and rigour in energy governance. The final chapter in the Karpowership debacle now appears closed - underscoring the role of watchdogs in defending the public interest.

Eskom has been ordered to pay nearly R1bn to French nuclear contractor Framatome following a damning High Court ruling on 17 July 2025 over delays and disputes in the multibillion-rand steam generator replacement project at its Koeberg nuclear power station. The court found Eskom in breach of contract for failing to meet conditions that would have allowed Framatome to complete the construction programme within the agreed timeframe. Despite Eskom's insistence that the dispute resolution process did not result in “penalties or fines,” the ruling makes clear that the utility must compensate Framatome for losses caused by Eskom's failure to fulfil critical preparatory obligations - described as an “own goal” by energy analysts. Compounding the fallout, only two days earlier on 15 July 2025, Eskom confirmed further delays in the return to service of Koeberg Unit 1 due to cracks found in the tubing of two of the three newly installed steam generators. Meanwhile, Koeberg Unit 2 will have to shut down again before its nuclear operating licence expires on 9 November 2025, to complete post-replacement testing - raising concerns about whether cracks may also be found in the three new steam generators on Unit 2. What is surprising is that Eskom has not publicly announced any counter claims resulting from the long history of delays caused by Framatome (and its predecessor, Areva) in the manufacture, delivery to site and construction of the six new steam generators. The subsequent financial impacts of increased load shedding on Eskom and South Africa, and the impacts of the delays caused by the recently discovered cracks, are significant. What was once seen as a critical life-extension project for Africa's only nuclear power plant is now mired in delays, legal battles and mounting costs.

On 23 July 2025, the Department of Energy & Electricity confirmed six new solar PV projects - totalling 1290MW - as preferred bidders under Bid Window 7 of the Renewable Energy IPP Procurement Programme (REIPPPP). Five of these projects are located in South Africa's Free State province and one in Limpopo province. Energy was secured at competitive tariffs of between R0.50 per kWh and R0.52 per kWh. Three of the projects form part of the Kroonstad PV Cluster, led by Scatec ASA, featuring Oslaagte Solar2 (293MW), Oslaagte Solar3 (293MW) and Leeuwspruit Solar1 (260MW). In total, this cluster accounts for 846MW and is backed by approximately R13b in investment, 90% of which is debt-financed. The remaining three solar PV projects are under development by a consortium including Red Rocket South Africa, MBY Energy and Jade-Sky Energy, comprising Virginia4 (210MW), Florida Solar Park (200MW) and Dwaalboom3 (180MW). Furthermore, the Department of Energy & Electricity confirmed that eight more compliant bids - including four additional solar PV projects and four wind projects - are under consideration, pending value-for-money negotiations. This follows the decision to reallocate around 2270MW of unused wind capacity to solar, given bid pricing and grid constraints, particularly in wind-heavy provinces of the Eastern, Western and Northern Cape. Thus, while solar PV projects power ahead, the wind power pipeline remains stalled by grid congestion. However, it is hoped that the recent approval by NERSA of a curtailment framework will unlock grid congestion to an extent that allows about 3000 MW of new wind capacity in the Eastern, Western and Northern Cape provinces.

Mozambique is poised to expand its hydropower output, offering Eskom a fresh source of clean electricity as part of a broader push to position the country as Southern Africa's emerging energy powerhouse. On 27 July 2025, Daily Maverick reported on Mozambique's advanced plans to boost generation at the Cahora Bassa Dam, adding roughly 1245MW through a northern-bank expansion. The project, expanding the existing 2075MW facility, is in deepening negotiations with the World Bank, which has pledged financial backing for the initiative -including debt financing, guarantees and insurance mechanisms. Alongside Cahora Bassa's expansion, the World Bank has confirmed support for the 1500MW Mphanda Nkuwa Dam, situated downstream on the Zambezi River. With an estimated total cost of US$6.4bn, this is set to be the region's largest new hydropower project in more than 50 years. The international lender's involvement spans multiple arms - IFC, IBRD, IDA and MIGA - covering infrastructure investment, risk mitigation and private sector mobilisation. Together, the Cahora Bassa and Mphanda Nkuwa projects form the foundation of Mozambique's long-term electricity strategy. The plan envisions Mozambique transforming into a regional exporter of renewable hydropower, delivering reliable clean energy to neighbouring markets within the Southern African Power Pool (SAPP). South Africa, however, represents the only credible major off-taker for the hydropower. Facing a need for new generation capacity to replace end-of-life coal-fired power plant post 2033, and a need to decarbonise its power generation sector, these developments offer a strategic opportunity for South Africa. If pursued, Mozambique's expanded hydropower output could provide stable, low-carbon supply to augment South Africa's existing generation portfolio. However, climate change and long-term decline in water availability poses significant risks to the hydropower projects in Mozambique, which rely heavily on the Zambezi River's flow regime.

Southern Africa's oil, gas and refined liquid fuels landscape is shifting rapidly, with major upstream breakthroughs and midstream and downstream vulnerabilities emerging simultaneously. Northern Mozambique is nearing the long-awaited restart of its $20bn LNG export project, with Saipem confirming that works at the Afungi site are expected to resume by late 2025. The TotalEnergies-led project had stalled due to insurgent violence in Cabo Delgado but is regaining investor confidence as security stabilises and DFI-backed financing reactivates. A restart offers significant regional energy and industrial spillovers, especially if local SMEs are integrated into the value chain. In Angola, Chevron has announced a significant gas breakthrough at the Gajajeira field, marking a milestone in its strategy to boost non-associated gas production. The discovery, reported in July 2025, is seen as key to fuelling Angola's domestic energy ambitions and potential future LNG exports, reinforcing the country's growing status as a regional energy hub. Meanwhile, oil and gas discoveries in Namibia continue to show promise. However, South Africa faces immediate midstream and downstream risks. The Fuel Industry Association of South Africa has warned of a jet fuel shortage by October 2025, citing looming refinery outages, outdated customs laws, and port handling bottlenecks. The Natref refinery shutdown and legal requirements restricting imports to refineries - many of which are now mothballed - are pushing the country toward another aviation fuel crisis. If not urgently addressed, fuel constraints could disrupt supply chains, flights and regional trade. Mozambique's Matola terminal may again play a key role in supplying Johannesburg's OR Tambo International Airport, just as it did during a previous jet fuel crunch. As Angola, Namibia and Mozambique accelerate upstream growth, South Africa's policy and regulatory inertia highlights a troubling mismatch - between energy abundance in the north of the region, and infrastructure fragility in the south.

The Hawks have launched a high-stakes investigation into City Power amid swirling allegations of corruption totalling more than R500m, placing further strain on the already fragile finances of the utility and the City of Johannesburg. The probe centres on the procurement conduct under CEO Tshifularo Mashava, who took office in June 2022. Internal investigation documents obtained by News24 reveal that City Power allegedly approved R335m in irregular maintenance payments for items such as air fresheners, pens, copper cables and trolley mops - many reportedly undelivered or grossly overpriced. In one instance, a contract quoted at R8m ballooned to R100m, prompting allegations of collusion and deliberate cost inflation. Another examination pointed to a R55m consulting contract duplicating internal managerial functions. These transactions are flagged as central to the Hawks' inquiry. While media outlets described a “raid” on City Power's Johannesburg headquarters, the utility has publicly disputed those claims. According to City Power, Hawks agents delivered a formal Request for Information (RFI), but no seizure of documents, IT equipment or staff interrogation occurred. This probe comes as City Power's financial position worsens dramatically. An Auditor-General's report identified critical governance failures during Mashava's tenure, while the 2023/24 fiscal year ended with a R2.8b loss and a bank balance of minus R16.3bn as of September 2024. The unfolding crisis underscores the scale of mismanagement at the municipal utility, which supplies electricity to over 3.2 million people in Johannesburg. Opposition parties have demanded Mashava's suspension, and an independent forensic audit of all contracts signed since mid-2022. With broad investigations looming and the utility teetering on the brink, City Power's governance and procurement integrity remain under intense scrutiny. Public trust is waning as Johannesburg battles simultaneous service delivery breakdowns, mounting debt and repeated allegations of executive malfeasance.