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The budget, the US and electricity

Mail & Guardian

|

March 28, 2025

The 2025 budget reflects a measured outlook on the energy landscape, highlighting both progress that has been made and the lingering problems

- Mischka Moosa

Mischka Moosa

The national budget presented earlier this month highlighted progress and earmarked changes for the evolving energy landscape.

In 2024, South Africa had 300 days without load-shedding. But the fragility of the energy system and shifting global climate priorities stresses the balancing act required to sustain energy security.

The proposed allocations and outcomes outlined in the budget highlight measures aimed at transforming the nation’s energy landscape.

Over the Medium-Term Expenditure Framework period, the treasury announced it will allocate R219.2 billion toward energy infrastructure investments to expand capacity and enhance stability in the energy sector.

Along with the roll-out of the Electricity Regulation Amendment Act (2024) on 1 January 2025, this will see the introduction of a competitive wholesale energy market to at diversify energy supply, enhance efficiency and encourage private sector participation. The initiative is intended to attract investment into renewable energy sources and promote competition to improve energy security.

The government has also announced that the initial planned R70 billion Eskom debt takeover would be replaced with two separate instalments of R40 billion in 2025-26 and R10 billion in 2028-29, resulting in an estimated saving of R20 billion. This decision is largely attributed to the utility’s recent improved performance and financial standing.

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