Loadshedding

South Africa has reached a milestone of one year without loadshedding, a structural shift from the crisis that saw 300 days of power cuts only three years ago, with Eskom's improved operational performance and the rapid expansion of private generation underpinning the achievement. The power utility's energy availability factor has risen and unplanned maintenance has fallen under its Generation Recovery Plan, while over 2 300 private generating facilities with more than 18 GW of capacity – representing over R360-billion in investment – have been registered, and rooftop solar now accounts for an estimated 10% of total electricity production. Credit ratings agencies Moody's and Fitch have affirmed Eskom's ratings, citing improving operational performance, strengthened cash flow and government debt relief, though both note ongoing constraints including rising municipal debt arrears exceeding R130-billion, regulatory challenges and execution risks associated with the unbundling process. However, the Iran war has exposed South Africa's structural dependency on diesel, which now accounts for almost half of all fuel consumed nationally – up from a third in 2005 – as freight shifted to roads following Transnet rail deterioration and businesses installed generators during the loadshedding years, with diesel prices spiking nearly 60% in the second quarter of 2026 and adding an estimated R45-billion in additional fuel costs to the economy.

Electricity and Energy Minister Kgosientsho Ramokgopa has outlined five strategic priorities for the 2026/27 financial year: risk-adjusted and integrated energy planning, accelerated grid expansion, wholesale market implementation, accelerating investment across an integrated technology stack and pricing and distribution sector reform. The Integrated Resource Plan 2025 is being positioned as a living system instrument continuously tested against real-world dynamics, with a Cabinet-approved update planned for 2027, while a Strategic Projects Management Office has been established to coordinate delivery across government programmes and state-owned entities. The Independent Transmission Projects Procurement Programme targets R440-billion in transmission investment to crowd in private capital into high-congestion grid corridors, while the technology portfolio accommodates renewables, gas, coal fleet transition, storage and nuclear, with coal planning shifting from a station-by-station approach to a 20-year national programmatic outlook ahead of the 2030 expiry of legal permitting on five stations.

Business leaders have warned that the April deadline for introducing an independent transmission system operator was missed, with no firm timetable for finalising this critical reform essential for a competitive electricity market that will manage grid access neutrally and ensure private generators can connect and compete fairly. Business Leadership South Africa describes the independent transmission system operator as equivalent to preventing one airline from also controlling the airports, noting that without it Eskom controls both generation and transmission, and warns that every month of delay keeps the promise of competition unrealised and risks turning Moody's positive outlook into a missed upgrade opportunity. The South African Wholesale Electricity Market is intended to introduce clearer price signals and improve dispatch efficiency while reducing long-term reliance on the single-buyer model, with both the wholesale tariff and vesting contract papers released by the National Energy Regulator of South Africa for public comment in line with the department roadmap.

AMEA Power has successfully commissioned the Doornhoek solar PV plant in May 2026, the first project under Renewable Energy Independent Power Producer Procurement Programme Bid Window 6 to reach commercial operation, while no confirmed commercial operation date updates have been reported for the five other preferred bidders selected in 2022. The business sector has issued an urgent call for immediate intervention to stabilise the City of Johannesburg's fiscal and governance crisis, warning that the metro's challenges – including an unfunded adjustment budget, R5.2-billion in electricity debt to Eskom, capital expenditure at 6% of budget, maintenance spending at 0.5% of asset value and estimated yearly losses of about R12-billion owing to unauthorised and irregular expenditure – threaten to undermine South Africa's broader economic recovery story. Business leaders are urging President Cyril Ramaphosa and the Government of National Unity to use available powers to drive structural reforms and ensure consequence management, drawing on the successes of the national government–business partnership that yielded measurable progress in energy and freight logistics.

Industrial decarbonisation requires modernisation that increases operational efficiency and reduces costs, with globally about 72% to 74% of industrial energy demand used to produce heat and only about 9% of industrial heat currently supplied by renewables, while adopting modern equipment such as new motors can improve energy efficiency by three to eight per cent and new compressors by 20% to 30%. South Africa's industrial sector faces converging pressures including ageing assets, the EU's Carbon Border Adjustment Mechanism, Carbon Tax Phase 2, Climate Change Act implementation and Eskom tariffs that have increased faster than inflation since 2007. The German development agency GIZ's Project Development Programme helps companies develop energy efficiency and decarbonisation projects, operating in the space between the completion of energy efficiency audits and implementation by facilitating relationships between South African companies and German suppliers, with recent projects in Côte d'Ivoire and Kenya expected to produce energy savings of 650 MW/h/yr and 125 MW/h/yr respectively.