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South Africa’s electricity supply industry has witnessed a ‘big bang’ moment, with the Electricity Regulation Amendment Act coming into force on 1 January. The reforms represent a ground-breaking shift from a centralised Eskom to a liberalised market structure involving the private sector. Authorities hope competition will increase the reliability of supply, bring down prices and help to close an enormous infrastructure funding gap, writes Tonderayi Mukeredzi.

Eight projects under the second round of South Africa’s battery energy storage independent power producer (Besippp) programme have been awarded, with Mulilo awarded five, Amea Power two and EDF one. With construction underway at most of the projects in the first window, and the third window bids under review, Pretoria is making important inroads in integrating battery energy storage systems into its energy mix, writes Tonderayi Mukeredzi.

Infinity Power secured six of the eight projects awarded under the country’s seventh renewable energy independent power producer procurement (Reippp) programme.

The Hidroeléctrica de Cahora Bassa reservoir is just 20% full, after a prolonged drought. Low water levels threaten to further reduce generation output at the 2.1GW hydroelectric plant, which supplies over 1GW to neighbouring South Africa and additional output to other Southern African Power Pool (Sapp) countries including Zimbabwe and, soon, Malawi.

Maintenance work on the second 930MWe unit at the Koeberg nuclear plant in Cape Town has been completed. Following similar work at unit I in 2023, the lifespan of Africa’s first nuclear power plant – commissioned in 1984 – is expected to be extended by another two decades.

Financial commitments towards South Africa’s Just Energy Transition Investment Plan from the International Partners Group of western countries and multilateral organisations have expanded to almost $14bn, up from an initial pledge of $8.5bn, but the programme faces criticism over the slow disbursement of funds.

Pele Green Energy has reached financial close for a major solar PV IPP that will supply power to the Glencore Merafe Chrome Venture.

Financial close for the 105MWp Ukuqala solar PV plant is Mulilo’s sixth project to reach the milestone in 2024, indicative of the enormous potential in South Africa for IPPs to sign private PPAs for wheeled power.

The third round of South Africa’s battery energy storage programme has attracted 33 bids from prospective independent power producers.

Etana Energy, the South African electricity trading platform, has secured a $100m guarantee facility to support its growth. British International Investment and GuarantCo will each provide $50m in guarantees, in an arrangement designed to support the development of more renewable energy by offering IPPs greater certainty over future revenues.

CrossBoundary Energy (CBE) has raised an initial $140m tranche of senior debt from South Africa’s Standard Bank to fund commercial and industrial (C&I) power projects fuelled by renewable energy (RE) across Africa.

Construction has started at data company Teraco’s 120MWp solar PV independent power producer (IPP) project in Free State province. Power from the plant will be wheeled across the Eskom grid to Teraco’s own sites across South Africa.

A consortium of TotalEnergies Renewables South Africa, Mulilo Energy Holdings, and Reatile Renewables have reached financial close on an agreement to supply 260MW of wind and solar PV energy to Sasol and Air Liquide at Sasol’s Secunda site in Mpumalanga province.

The Oasis consortium, led by EDF Group and Mulilo, has reached financial close on three battery energy storage system (Bess) projects in South Africa’s Northern Cape and North West provinces. The projects are part of the first round of the country’s Battery Energy Storage IPP Procurement Programme (Besippp).

A manufacturing plant that will produce crucial components for fuel cells and electrolysers is expected to kick-start South Africa’s budding green hydrogen industry. But while Isondo Precious Metals is confident of making progress, many more upcoming large-scale GH2 projects remain stuck at pre-feasibility stage, writes Tonderayi Mukeredzi.