South Africa's electricity reforms: The urgent need for a clear roadmap to prevent loadshedding
Another key concern is uncertainty around Eskom’s transition and its end state.
Image: File
South Africa’s electricity reforms risk being stymied by the lack of a clear delivery roadmap, with the spectre of loadshedding in 2030 not ruled out as the bulk of Eskom’s coal-fired power stations are decommissioned and the uptake of renewable energy generation remains uncertain, a report commissioned by the South African Energy Traders Association (SAETA) has found.
Titled “Policy to Power: 10 Actions to Deliver Green, Accessible and Secure Electricity”, the SAETA report—produced by research and consulting firm Krutham—calls for efficient and timely execution of the electricity open market to help stabilise the power grid following the envisaged 2030 decommissioning of coal-fired power stations.
SAETA represents electricity traders, with members including Africa GreenCo, Apollo, Discovery Green, Enpower Trading, Envusa, Etana, EXSA, Investec, Lyra Energy, Mainstream, NOA, POWERX and Sturdee Energy.
Speaking at the launch of the report, NOA head of trading and co-founder Andrew Taylor said that after many years of crisis, there is now broad agreement on the direction of travel towards a greener, more competitive and more resilient electricity system. This system, he said, would be underpinned by transparent access to the grid, multiple buyers and sellers, and a functioning wholesale market.
“We believe, as SAETA, that the policy direction is the right one, supported by legislation, Cabinet decisions and growing private investment already flowing into new generation capacity.
“The challenge is no longer policy intent, but delivery. The risk is not that the reform goes too far, but that it goes too slowly, unevenly and without coordination, and in doing so fails to unlock the benefits it promises,” he said.
He added that the absence of a single, authoritative roadmap risks stalling or even collapsing the reform agenda, identifying this as one of the key blockages highlighted in the report.
“While we have no shortage of plans or policy, the absence of a coordinated roadmap potentially leaves us with a fragmented and confidence-eroding environment,” Taylor said.
Another key concern is uncertainty around Eskom’s transition and its end state. While progress on unbundling is commendable, it remains uneven—particularly in relation to market operations and the Market Code.
Taylor said clarity is needed from National Treasury, the Presidency and Eskom regarding the future of power stations: whether they are destined purely for decommissioning, or whether market signals will determine their competitiveness. Questions also remain about when assets become stranded and when it no longer makes economic sense for the state to continue operating certain coal-fired plants.
The report sets out 10 priority actions to move from policy commitments to implementation. These include publishing a Cabinet-endorsed electricity reform roadmap with a clear end state, defined milestones and accountability mechanisms.
It also calls for the finalisation of the Electricity Pricing Policy to underpin cost-reflective, unbundled tariffs and bankable contracts, as well as strengthening the Department of Electricity and Energy and the National Energy Regulator of South Africa (NERSA) with the necessary skills, resources and clear mandates.
Other priorities include:
Defining a credible end state and timeline for Eskom Holdings, including the separation of commercial interests and a sustainable balance sheet path.
Delivering the transmission development plan to unlock grid capacity and ensure non-discriminatory access.
Implementing reform of the electricity distribution industry, with targeted municipal support for wheeling and system upgrades.
Finalising trading rules that recognise traders as independent participants and operate in parallel with the Market Code.
Improving wheeling systems and grid access, including automated, technology-enabled settlement across municipal networks.
Launching the South African Wholesale Electricity Market with the Market Code in place, operating coherently alongside bilateral trading.
Enabling cross-border electricity transactions to deepen liquidity and strengthen regional security of supply.
BUSINESS REPORT