Navigating South Africa's energy transition: The risks of Eskom’s dual role

SOUTH Africa’s energy transition is unfolding in the midst of ageing coal stations, constrained grid infrastructure, and an urgent need for new investment. Without coherence and alignment, these pressures risk undermining growth and stability.

- THOMAS GARNER

Last week, we examined the idea of ifying focus for South Africa's electricity sector and proposed the phrase: “investing in energy security to enable sustainable, low-carbon industrialisation and universal access to electricity.” We noted that the sector is currently paralysed by contested institutional battles.

This conflict is evident in several ways: Eskom’s attempt to claw back R94 billion in revenue following calculation errors by the energy regulator; its obstruction of the unbundling of the National Transmission Company of South Africa (NTCSA); and Eskom Distribution’s court challenge against the issuing of trading licences to independent traders.

Against this backdrop, Eskom has announced plans to market electricity from its own future renewable facilities and is negotiating long-term power purchase agreements with customers.

The industry is asking how these Eskom-owned generators will be given grid access; potentially in a discriminatory rather than a transparent, nondiscriminatory manner?