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The Generation of Electricity in South Africa 2025

Carole Veitch | South Africa | 22 September 2025

The Generation of Electricity in South Africa 2024

Gary Phillips | South Africa | 30 January 2024

The Generation of Electricity in South Africa 2022

Stephen Timm | South Africa | 30 November 2022

The Generation of Electricity in South Africa 2021

Yasmin Mahomedy | South Africa | 16 February 2021

The Generation of Electricity in South Africa 2020

Yasmin Mahomedy | South Africa | 15 January 2020

The Generation of Electricity in South Africa 2018

Yasmin Mahomedy | South Africa | 31 October 2018

The Generation of Electricity in South Africa 2017

Yasmin Mahomedy | South Africa | 18 October 2017

The Generation of Electricity in South Africa 2016

Yasmin Mahomedy | South Africa | 08 August 2016

The Generation of Electricity in South Africa 2015

Yasmin Mahomedy | South Africa | 29 May 2015

Report Coverage

This report on electricity generation in South Africa provides comprehensive information on electricity infrastructure, generation and grid capacity, energy sources, renewable energy generation, generation performance, energy security risks, and tariffs. It provides information on energy resource reforms, the integrated resource plan and developments such as decommissioning coal plants, gas-to-power, nuclear and battery storage. The report includes notable players, corporate actions and influencing factors such as environmental issues. There are profiles of 37 notable players including Eskom, the Avon and Dedisa peaking power plants, African Rainbow Energy and Power, Enel Green Power, EDF Renewables and Scatec.

Introduction

• Following years of declining plant performance and power cuts, electricity supply has stabilised.
• The Independent Power Producer (IPP) programme has procured over 11GW of capacity, attracted billions in private investment in clean energy infrastructure.
• Independent power helped diversify the energy mix, reduce reliance on Eskom, and stimulate local economic development.
• Challenges include grid access, transmission constraints and permitting delays.

Trends

• Declining dominance of Eskom as private sector electricity generation increases.
• Electricity demand continues to decline, mainly due to improved energy efficiency, rooftop solar PV and rising Eskom tariffs.
• Electricity trading is becoming more flexible, with businesses increasingly shifting from long-term contracts to shorter-term power purchase agreements and merchant models.
• Energy insecurity, economic, technical, political, and social factors have delayed South Africa’s transition from coal-fired generation.
• Municipalities are increasingly exploring alternative supply models to reduce dependence on Eskom.
• Renewable energy companies are expanding into commercial and industrial self-generation, wheeling and battery storage.
• While loadshedding has eased, energy security remains fragile, with Eskom continuing to depend on emergency procurement, and increasingly, on private power generation.

Opportunities

• Blended finance structures and public-private partnerships are unlocking capital for large-scale infrastructure.
• Grid-scale battery systems, thermal energy storage, and hybrid renewable-storage projects, particularly in areas facing transmission constraints.
• Local manufacturing of solar PV, wind, and battery components.
• Private power purchase agreements and electricity wheeling/trading in South Africa and in other African countries.
• Renewed interest in small modular nuclear reactors, in South Africa and in other African countries.
• The proposed expansion of the electricity transmission network provides significant opportunities for the transformer industry and its supply chain.

Challenges

• Coal continues to dominate generation, posing climate and reputational risks. Balancing decarbonisation with job preservation in coal regions is politically and socially sensitive.
• Eskom’s ageing Infrastructure is prone to breakdowns and costly to maintain.
• Eskom’s financial and operational challenges persist as it continues to face liquidity constraints, ageing infrastructure, underperformance at key coal stations, and grid constraints.
• Eskom’s financial stability is exacerbated by extremely high levels of municipal debt.
• Eskom’s slow progress in establishing separate generation and distribution subsidiaries is stalling market reform and affecting investor confidence.
• The impact of power outages and rising electricity costs on the economy and economic growth.
• The introduction of new utility-scale independent renewable energy power supply is constrained by the lack of capacity on the national grid.

Outlook

• The electricity sector is in transition, with clear signs of progress along with persistent structural challenges.
• The need for new generation capacity remains urgent.
• Execution depends on resolving grid constraints and accelerating transmission upgrades.
• Pricing pressures have narrowed margins for IPPs, but opportunities remain.
• Eskom is showing real signs of recovery on the technical front, but its financial sustainability is under pressure with mounting municipal debt.
• Challenges such as grid constraints, financial pressures, and regulatory uncertainty remain.
• Ongoing developments in renewable energy, storage, and market restructuring present opportunities for diversification and improved system resilience.
• Decentralised power generation and on-site energy storage are opening up new business opportunities.
• There is a renewed drive toward expanding nuclear generation capacity.
• The energy sector’s growth outlook will depend on coordinated investment, regulatory clarity, and the ability to translate planning into delivery at scale.

The Generation of Electricity in South Africa 2025

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Industry Landscape

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The Generation of Electricity in South Africa 2024-01-30

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The Generation of Electricity in South Africa 2022-11-30

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2018-10-31

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The Generation of Electricity in South Africa 2017-10-18

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The Generation of Electricity in South Africa 2016-08-08

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	6
2.3.	Size of the Industry	9
3.	LOCAL	14
3.1.	State of the Industry	14
3.2.	Key Trends	30
3.3.	Key Issues	31
3.4.	Notable Players	31
3.5.	Trade	37
3.6.	Corporate Actions	39
3.7.	Regulations	40
3.8.	Enterprise Development and Social Development	41
4.	AFRICA	43
5.	INTERNATIONAL	49
6.	INFLUENCING FACTORS	52
6.1.	Unforeseen Events	52
6.2.	Economic Environment	53
6.3.	Labour	56
6.4.	Environmental Issues	58
6.5.	Technology, R&D, Innovation	59
6.6.	Government Support	61
6.7.	Input Costs	63
7.	COMPETITIVE ENVIRONMENT	63
7.1.	Competition	63
7.2.	Ownership Structure of the Industry	64
7.3.	Barriers to Entry	65
8.	INDUSTRY SUMMARY	65
9.	OUTLOOK	66
10.	INDUSTRY ASSOCIATIONS	67
11.	REFERENCES	68
11.1.	Publications	68
11.2.	Websites	69
	Annexure 1	70
	List of Relevant Legislation	70
	Appendix 1	78
	Summary of Notable Players	78
	COMPANY PROFILES	83
	ACCIONA ENERGY SOUTH AFRICA (PTY) LTD	83
	ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD	85
	AFRICAN RAINBOW ENERGY AND POWER (PTY) LTD	87
	ASSOCIATED ENERGY SERVICES (PTY) LTD	89
	AVON PEAKING POWER (RF) (PTY) LTD	91
	CENNERGI (PTY) LTD	93
	CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD	96
	COX SERVICES SOUTH AFRICA (PTY) LTD	98
	DEDISA PEAKING POWER (RF) (PTY) LTD	100
	EDF RENEWABLES (PTY) LTD	102
	ENEL GREEN POWER RSA (PTY) LTD	104
	ENGIE SOUTHERN AFRICA (PTY) LTD	106
	ESKOM HOLDINGS SOC LTD	108
	G7 RENEWABLE ENERGIES (PTY) LTD	112
	GLOBELEQ SOUTH AFRICA MANAGEMENT SERVICES (PTY) LTD	114
	HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY NPC	116
	INFINITY POWER INTERMEDIATE HOLDINGS (PTY) LTD	118
	MAINSTREAM SOUTH AFRICA RENEWABLE POWER (PTY) LTD	120
	MULILO ENERGY HOLDINGS (PTY) LTD	121
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	123
	NEW SOUTHERN ENERGY (PTY) LTD	126
	NOA GROUP TRADING (PTY) LTD	128
	OYA ENERGY (RF) (PTY) LTD	129
	PELE ENERGY GROUP (RF) (PTY) LTD	131
	RCSA ENERGY (PTY) LTD	134
	REATILE GROUP (PTY) LTD	135
	RED ROCKET SOUTH AFRICA (PTY) LTD	137
	SCATEC AFRICA (PTY) LTD	140
	SEF SOC LTD	142
	SERITI GREEN DEVELOPMENTS SOUTH AFRICA (PTY) LTD	146
	SOLA GROUP (PTY) LTD	148
	SOLAR CAPITAL (PTY) LTD	150
	SOLARISE SOUTH AFRICA (PTY) LTD	152
	SOSIMPLE ENERGY (PTY) LTD	153
	STRATEK GLOBAL (PTY) LTD	155
	TOTALENERGIES MARKETING SOUTH AFRICA (PTY) LTD	156

Report Coverage

This report on the generation of electricity in South Africa provides comprehensive information on Eskom and independent power producers, energy sources including renewables, and changes to the energy mix, the new draft Integrated Resource Plan, the Eskom crisis, smallscale generation, notable players and regulatory developments. It also covers influencing factors such as input costs, and the changing competitive landscape. There are profiles of 31 companies including Eskom, the Avon and Dedisa peaking power plants, emergency energy provider Karpowership and renewable companies such as Mulilo Energy, EDF, ACWA Power, Oya Energy, African Rainbow and Energy Projects, Sola Group, Globaleq, Enel Green Power, Scatec, Cennergi, Seriti Green and Pele Green Energy.

Introduction

• South Africa’s electricity crisis intensified in 2023 due to extensive breakdowns at the debt-laden Eskom’s aging power stations.
• This comes at a time when the renewable energy independent power procurement programme has slowed considerably.
• Recent regulatory changes have unlocked new avenues of private and municipal investment in electricity generation.
• Eskom’s unbundling into separate generation, transmission, and distribution companies, was targeted to be complete by the middle of 2024.
• Eskom planned to reduce loadshedding in 2024 with the return of large amounts of capacity to operation after long periods of maintenance.
• Eskom continues to be beset by corruption, theft and sabotage.
• The electricity grid is at capacity with limited opportunity to receive new supply.

Trends

• Eskom’s municipal debt continues to be very high.
• Eskom’s poor financial and operational performance continues.
• Loadshedding continues to escalate.
• Regulatory moves to separate Eskom into three companies and to introduce competition in electricity generation gained pace in 2023.
• Renewable energy companies have taken advantage of new commercial and industrial self-generation projects.
• Small-scale embedded solar generation, predominantly residential, rapidly increased in 2023.
• The contribution of coal-sourced electricity to total generation has been declining.
• The introduction of new utility-scale independent renewable energy power supply to Eskom is being constrained by the lack of capacity on the national grid.

Opportunities

• Electricity trading providing remote markets for independent power producers.
• Private supply of distributed electricity generation capacity for large companies.
• Solar panel prices have dropped considerably, making embedded solutions more affordable.

Challenges

• Continued theft and corruption at Eskom.
• Eskom’s continued poor financial and operational performance.
• Installing sufficient renewable energy and gas generation supply to reduce dependence on coal.
• The national grid is at capacity.

Outlook

• The electricity crisis has caused significant losses to the economy.
• Private renewable energy generation companies face challenges as the grid is at full capacity.
• The outlook for the electricity generation industry is poor.
• Government anticipates the supply deficit to last until 2027.
• There could be some relief from the removal of regulatory hurdles to private sector participation and direct municipal procurement of electricity.
• Embedded rooftop solar generation and self-generation investment continue to grow.
• The unbundling of Eskom will enable the private sector to supply utility-scale electricity.
• Treasury has implemented a plan to relieve Eskom debt, and Eskom has implemented a plan to tackle municipal debt.

The Generation of Electricity in South Africa 2024

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Industry Landscape

R 6 650.00(ZAR) estimated $ 383.03 (USD)*

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Historical Reports

The Generation of Electricity in South Africa 2025-09-22

R 20 000.00(ZAR) estimated $1151.98 (USD)*

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The Generation of Electricity in South Africa 2022-11-30

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2018-10-31

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2017-10-18

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2016-08-08

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2015-05-29

R 1 900.00(ZAR) estimated $109.44 (USD)*

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	2
2.1.	Industry Value Chain	5
2.2.	Geographic Position	7
2.3.	Size of the Industry	9
3.	LOCAL	15
3.1.	State of the Industry	15
3.2.	Key Trends	29
3.3.	Key Issues	30
3.4.	Notable Players	30
3.5.	Trade	35
3.6.	Corporate Actions	37
3.7.	Regulations	38
3.8.	Enterprise Development and Social Development	40
4.	AFRICA	41
5.	INTERNATIONAL	45
6.	INFLUENCING FACTORS	47
6.1.	Unforeseen Events	47
6.2.	Economic Environment	48
6.3.	Labour	49
6.4.	Environmental Issues	52
6.5.	Technology, R&D, Innovation	54
6.6.	Government Support	55
6.7.	Input Costs	55
7.	COMPETITIVE ENVIRONMENT	56
7.1.	Competition	56
7.2.	Ownership Structure of the Industry	57
7.3.	Barriers to Entry	58
8.	INDUSTRY SUMMARY	58
9.	OUTLOOK	59
10.	INDUSTRY ASSOCIATIONS	60
11.	REFERENCES	60
11.1.	Publications	60
11.2.	Websites	61
	Appendix 1	62
	Summary of Notable Players	62
	Appendix 2	66
	List of Relevant Legislation	66
	COMPANY PROFILES	73
	Acciona Energy South Africa (Pty) Ltd	73
	ACWA Power Solafrica Bokpoort CSP Power Plant (RF) (Pty) Ltd	75
	African Rainbow Energy and Power (Pty) Ltd	77
	Associated Energy Services (Pty) Ltd	79
	Avon Peaking Power (RF) (Pty) Ltd	81
	BioTherm Energy (Pty) Ltd	83
	Cennergi (Pty) Ltd	85
	Coria (PKF) Investments 28 (RF) (Pty) Ltd	88
	Coxabengoa Services South Africa (Pty) Ltd	90
	Dedisa Peaking Power (RF) (Pty) Ltd	92
	EDF Renewables (Pty) Ltd	94
	Enel Green Power RSA (Pty) Ltd	96
	Engie Southern Africa (Pty) Ltd	98
	Eskom Holdings SOC Ltd	100
	Globeleq South Africa Management Services (Pty) Ltd	104
	Hopefield Wind Farm Local Community Company NPC	106
	Karpowership SA (Pty) Ltd	108
	Lekela Power Intermediate Holdings (Pty) Ltd	110
	Mainstream South Africa Renewable Power (Pty) Ltd	112
	Mulilo Energy Holdings (Pty) Ltd	113
	National Energy Regulator of South Africa	115
	Pele Energy Group (RF) (Pty) Ltd	118
	RCSA Energy (Pty) Ltd	120
	Reatile Group (Pty) Ltd	121
	Red Rocket South Africa (Pty) Ltd	123
	Scatec Africa (Pty) Ltd	126
	SEF SOC Ltd	128
	Seriti Green Developments South Africa (Pty) Ltd	132
	Sola Group (Pty) Ltd	134
	Solar Capital (Pty) Ltd	136

Report Coverage

This report on the generation of electricity in South Africa includes comprehensive information on the extent of the crisis, actions and projects aimed at relieving it, and the sources of generation that are planned. There is information on the state of the sector, the role of Eskom and the effect of its financial and operational crisis and renewable energy and embedded generation developments. There are profiles of 30 companies including Eskom, the National Energy Regulator, the Avon and Dedisa peaking power plants, and renewables players such as Enel Green Power, EDF Renewables and Scatec Solar.

Introduction

• South Africa, which produces over a quarter of Africa’s electricity, is in an electricity crisis as power cuts escalated in 2022.
• The percentage availability of the country’s total installed capacity fell to below 60% by October 2022 as power stations continue to break down, resulting in power cuts to prevent the electricity grid from collapsing.
• The crisis has been compounded by Eskom’s debt of about R400bn and the need for the country to transition from its reliance on coal to renewable energy.
• Corruption, sabotage, increasing unpaid debt from municipalities and a loss of skills continue to threaten Eskom’s viability.
• In a bid to make Eskom more financially viable, government in 2019 announced it would split it into three parts, with a distribution company due to be launched at the end of 2022.
• Government recently revived the Renewable Independent Power Producer Programme which had been stalled for some years.
• Debate continues over the country’s energy mix and the role that gas, nuclear and coal power will play, with the government not having updated the integrated resource plan since 2019.

Strengths

• Eskom is a net electricity exporter to the southern African region.
• South Africa has abundant sources for coal-fired electricity and renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Delays in Eskom’s build programme for Medupi and Kusile.
• Electricity is not being managed sustainably due to financial mismanagement and corruption.
• High capital costs and difficult regulatory environment for independent power producers.
• Ongoing breakdowns of Eskom’s unreliable aging coal-fired plants leaves the country with only about 60% of installed capacity.
• Reliance on Eskom for almost 90% of electricity requirements.
• Some have questioned the role BEE has played in contributing to Eskom’s skills deficit, significant debt and corruption.

Opportunities

• Investment, skills, and extra power brought by independent power producers.
• Job creation and increased energy supply from renewable energy projects.
• Municipalities can commission and procure their own power needs.
• South Africa and the region’s recent large gas discoveries could make gas-to-power projects viable.
• South Africa can encourage the development of local suppliers to build and export renewable energy inputs.
• The deregulation of the electricity market allows for energy wheelers and traders.
• The just energy transition is making more climate finance available for renewable projects.
• The price of most forms of renewable energy is decreasing, making renewable energy investment more attractive.
• The removal of licensing for power plants of 1MW to 100MW will incentivise embedded generation projects.

Threats

• Collapse of the national grid.
• Corruption and mismanagement at Eskom.
• Escalating tariffs have reduced electricity demand.
• Eskom debt, which threatens its viability.
• Eskom will be liable for high carbon tax if it does not lower its emissions.
• Rampant criminality with the increase in cable theft, corruption, sabotage and illegal electricity connections.
• Rising inputs and global logistics delays could delay renewable energy projects and make them unsustainable.
• The shortage of transmission capacity in the Northern Cape threatens to delay new IPPs from coming online.

Outlook

• Electricity shortages are likely to persist until mid-2024, until new power projects come online.
• While economic growth is expected to slow as a result of loadshedding, in turn leading to lower electricity production, various measures will open the domestic market up to new producers and electricity traders.
• The crisis has driven the addition of renewable energy capacity.
• However, the country’s reliance on Eskom represents a major liability, particularly given its debt, which threatens to undermine electricity security if it limits spend on planned plant maintenance and procurement of new capacity.

The Generation of Electricity in South Africa 2022

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Industry Landscape

R 4 550.00(ZAR) estimated $ 262.08 (USD)*

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Historical Reports

The Generation of Electricity in South Africa 2025-09-22

R 20 000.00(ZAR) estimated $1151.98 (USD)*

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The Generation of Electricity in South Africa 2024-01-30

R 9 500.00(ZAR) estimated $547.19 (USD)*

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The Generation of Electricity in South Africa 2021-02-16

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2020-01-15

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2018-10-31

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2017-10-18

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2016-08-08

R 1 900.00(ZAR) estimated $109.44 (USD)*

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The Generation of Electricity in South Africa 2015-05-29

R 1 900.00(ZAR) estimated $109.44 (USD)*

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	6
2.3.	Size of the Industry	9
3.	LOCAL	13
3.1.	State of the Industry	13
3.2.	Key Trends	23
3.3.	Key Issues	39
3.4.	Notable Players	40
3.5.	Trade	41
3.6.	Corporate Actions	43
3.7.	Regulations	45
3.8.	Enterprise Development and Social Development	48
4.	AFRICA	50
5.	INTERNATIONAL	53
6.	INFLUENCING FACTORS	54
6.1.	Economic Environment	54
6.2.	Labour	54
6.3.	Environmental Issues	56
6.4.	Technology, R&D, Innovation	58
6.5.	Government Support	58
6.6.	Input Costs	60
6.7.	Eskom Debt	62
6.8.	Corruption, Sabotage and Theft	64
6.9.	Electricity Tariffs	68
7.	COMPETITIVE ENVIRONMENT	69
7.1.	Competition	69
7.2.	Ownership Structure of the Industry	70
7.3.	Barriers to Entry	71
8.	SWOT ANALYSIS	71
9.	OUTLOOK	73
10.	INDUSTRY ASSOCIATIONS	73
11.	REFERENCES	73
11.1.	Publications	73
11.2.	Websites	75
	APPENDIX 1	76
	Summary of Notable Players	76
	COMPANY PROFILES	80
	Abengoa South Africa (Pty) Ltd	80
	Acciona Energy South Africa (Pty) Ltd	82
	ACWA Power Solafrica Bokpoort CSP Power Plant (RF) (Pty) Ltd	84
	African Rainbow Energy and Power (Pty) Ltd	86
	Associated Energy Services (Pty) Ltd	88
	Avon Peaking Power (RF) (Pty) Ltd	90
	BioTherm Energy (Pty) Ltd	92
	Cennergi (Pty) Ltd	94
	Coria (PKF) Investments 28 (RF) (Pty) Ltd	97
	Dedisa Peaking Power (RF) (Pty) Ltd	99
	EDF Renewables (Pty) Ltd	101
	Enel Green Power RSA (Pty) Ltd	103
	Engie Southern Africa (Pty) Ltd	105
	Eskom Holdings SOC Ltd	107
	Globeleq South Africa Management Services (Pty) Ltd	111
	Hopefield Wind Farm Local Community Company NPC	113
	Hulisani Ltd	115
	Kelvin Power (Pty) Ltd	117
	Lekela Power Intermediate Holdings (Pty) Ltd	119
	Mulilo Energy Holdings (RF) (Pty) Ltd	121
	National Energy Regulator of South Africa	123
	Pele Energy Group (RF) (Pty) Ltd	126
	Phelan Energy Group (Pty) Ltd	128
	Red Rocket South Africa (Pty) Ltd	130
	Rosatom Central and Southern Africa (Pty) Ltd	133
	Scatec Solar Africa (Pty) Ltd	135
	SEF SOC Ltd	137
	Sinogy Holding (Pty) Ltd	141
	Sola Group (Pty) Ltd	142
	Solar Capital (Pty) Ltd	144

Report Coverage

This report focuses on the generation of electricity and includes information on the size and state of the sector, including coal, gas and renewables and developments at Eskom and in the independent power production programme. There are profiles of 13 companies including Eskom, the National Energy Regulator of South Africa, Dedisa Peaking Power, Hopefield Wind Farm Local Community Company and ACWA Power Solafrica Bokpoort.

Introduction

This report focuses on the generation of electricity in South Africa, which is dominated by state-owned utility Eskom. The utility continues to be plagued by financial instability, corruption, generating capacity shortages, and a debt burden which is threatening the country’s economy. Eskom’s debt, which is fuelling South Africa’s economic crisis, stood at R488bn at the end of March 2020, up by R48bn from March 2019, and it reported a net loss after tax of R20.7bn for the 2020 financial year. In October 2020, during Eskom’s quarterly state of the system briefing, officials said that “load shedding will likely persist in the near future as plants undergo much-needed maintenance”. Although Eskom has spent billions on the construction of two massive coal-fired stations Medupi, which began in 2007, and Kusile, in 2008, to increase capacity, it produced less electricity from coal than a year ago. Eskom produced 194,357 gigawatt hours (GWh) from coal in the year to end-March 2020, compared to 200,210GWh in the prior year. Total electricity produced for the same period, which includes electricity from sources other than Eskom including renewables, also declined from 218,939GWh in 2019, to 214,968GWh in 2020. Eskom’s reduced capacity has been mainly due to maintenance, and unplanned breakdowns, which led to 20 days of load-shedding from July to 14 December 2020. This figure would have been higher if Eskom had not used open cycle gas turbines which run on diesel, at R10m per hour, to support the power system when capacity was severely strained. Eskom spent R7.5bn on diesel-generated power to prevent load-shedding in the year to end-March 2020. For the six months to end-September 2020, Eskom spent R1.4bn on open cycle gas turbines, compared to R1.1bn for six months to end-September 2019. Although government’s Integrated Resource Plan 2019 (IRP 2019), which outlines the energy mix for the next decade, includes increased generation capacity from renewable sources, South Africa is reliant on coal for the near future.

Strengths

• South Africa has abundant sources for coal-fired electricity and renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Delays in Eskom’s build programme.
• Electricity is not being managed sustainably due to financial mismanagement and corruption.
• Eskom’s capacity constraints due to maintenance and breakdowns, resulting in load-shedding.
• Eskom’s high debt burden.
• High capital costs and difficult regulatory environment for independent power producers.
• Reliance on Eskom for about 90% of electricity requirements.

Opportunities

• Investment, skills, and extra power brought by independent power producers.
• Job creation and increased energy supply from renewable energy projects.
• The price of most forms of renewable energy is decreasing, making renewable energy investment more attractive.

Threats

• Collapse of the national grid.
• Corruption and mismanagement at Eskom.
• Eskom will be liable for high carbon tax if it does not lower its emissions.
• Increase in vandalism, cable theft, and illegal electricity connections.
• Increasing shortage of skills.

Outlook

he future of South Africa’s industrial and economic growth will remain uncertain in the absence of an efficient electrical system, and due to Eskom’s inability to repay its debt. Eskom has experienced an approximate 1% reduction in sales volumes per annum in recent years. The coronavirus pandemic placed further pressure as the economy contracted and Eskom said it is unlikely that electricity demand will recover to pre-pandemic levels by the end of 2021 due to the long-lasting effect of the economic recession. Although government has recognised that South Africa needs an abundant, reliable supply of electricity with affordable prices to attract investment, it will still not commit to 100% renewable power in the foreseeable future. Eskom’s de Ruyter has warned that the utility’s power generation crisis would persist for longer if government failed to allow it to procure more electricity from independent power producers. According to Bloomberg Economics, “the single biggest risk to South Africa’s economic outlook remains the availability of electricity. It is a binding constraint that continues to hold back productivity and investment growth. Without it, the country’s growth potential will remain stuck at around 1%, even if progress is made in other areas.”

The Generation of Electricity in South Africa 2021

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Industry Landscape

R 1 330.00(ZAR) estimated $ 76.61 (USD)*

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The Generation of Electricity in South Africa 2025-09-22

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The Generation of Electricity in South Africa 2024-01-30

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The Generation of Electricity in South Africa 2022-11-30

R 6 500.00(ZAR) estimated $374.39 (USD)*

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2018-10-31

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The Generation of Electricity in South Africa 2017-10-18

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The Generation of Electricity in South Africa 2016-08-08

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	9
4.	STATE OF THE INDUSTRY	11
4.1.	Local	11
4.1.1.	Trade	24
4.1.2.	Corporate Actions	25
4.1.3.	Regulations	26
4.1.4.	Enterprise Development and Social Economic Development	28
4.2.	Continental	29
4.3.	International	32
5.	INFLUENCING FACTORS	34
5.1.	Coronavirus	34
5.2.	Economic Environment	34
5.3.	Rising Operating Costs	35
5.4.	Supply and Quality of Coal	36
5.5.	Corruption, Fraud and Mismanagement	36
5.6.	Electricity and Equipment Theft	38
5.7.	Technology, Research and Development (R&D) and Innovation	39
5.8.	Environmental Concerns	40
5.9.	Labour	42
6.	COMPETITION	45
6.1.	Barriers to Entry	46
7.	SWOT ANALYSIS	47
8.	OUTLOOK	47
9.	INDUSTRY ASSOCIATIONS	48
10.	REFERENCES	48
10.1.	Publications	48
10.2.	Websites	49
	APPENDIX 1	50
	Summary of Notable players	50
	COMPANY PROFILES	52
	ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD	52
	ASSOCIATED ENERGY SERVICES (PTY) LTD	54
	AVON PEAKING POWER (RF) (PTY) LTD	57
	CENNERGI (PTY) LTD	59
	CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD	62
	DEDISA PEAKING POWER (RF) (PTY) LTD	64
	ESKOM HOLDINGS SOC LTD	66
	HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY NPC	70
	KELVIN POWER (PTY) LTD	72
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	74
	PHELAN ENERGY GROUP (PTY) LTD	77
	ROSATOM CENTRAL AND SOUTHERN AFRICA (PTY) LTD	79
	SEF (SOC) LTD	81

Report Coverage

This report focuses on the generation of electricity by Eskom and independent power producers. There is comprehensive information on the state and size of the sector, the shifting energy mix under government’s resources plan to 2030 and progress in the introduction of renewable energy. There are profiles of 13 companies including Eskom, the Dedisa and Avon peaking power plants and solar energy companies such as the Hopefield Wind Farm and Coria, which trades as the Noblesfontein Wind Farm.

Introduction

This report focuses on the generation of electricity in South Africa. State-owned utility Eskom, which dominates the country’s power generation, is in crisis due to generating capacity shortages, financial instability, corruption and mismanagement and a R450bn debt exposure. Eskom reported a net loss after tax of R20.7bn for the 2019 financial year. In November 2019 former chairperson Jabu Mabuza said it would make a R20bn loss in the 2020 financial year. The utility has been blamed for causing the economy to lose billions of rands as a result of load-shedding, which resumed in the first week of December 2019 and reached stage 6, or shedding 6,000 megawatts (MW) – an indication that it has lost 40% of generating capacity, according to experts. Economists said the latest power cuts will affect fourth quarter GDP. Ratings agencies may consider further sovereign downgrades. In October 2019, government approved the Integrated Resource Plan 2019 (IRP 2019), which outlines the energy mix for the next decade. The bulk of the increased generation capacity will be from renewable sources to lessen South Africa’s reliance on coal and help reduce the country’s carbon emissions.

Strengths

• South Africa has abundant sources for coal-fired electricity and renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Electricity is not being managed sustainably due to financial mismanagement and corruption.
• High capital costs and difficult regulatory environment for independent power producers.
• Reliance on Eskom for about 90% of South Africa’s electricity requirements.

Opportunities

• The price of most forms of renewable energy is decreasing, making renewable energy investment more attractive.
• Investment, skills and extra power brought by independent power producers.
• Job creation and increased energy supply from renewable energy projects.

Threats

• Collapse of the national grid.
• Corruption and mismanagement at Eskom.
• Eskom will be liable for high carbon tax if it does not lower its emissions.
• Increasing shortage of skills.

Outlook

Eskom is a significant threat to the stability of the South African economy due to its soaring debt obligations, declining sales, insufficient installed capacity to meet the electricity needs of country, and the effect of blackouts on the economy. There is a severe mismatch between what Eskom is likely to be able to charge for electricity and the associated costs, excluding the possible costs to meet emissions standards over the next decade. Government continues to bail out the debt-ridden utility and despite the declining cost of renewable energy, South Africa’s energy plan will not be committing to 100% renewable power in the foreseeable future. Dom Wills, engineer and CEO of solar company Sola, reported that “a move to renewable energy will not only boost the economy and create jobs, it is also the path to providing South Africa with potentially the cheapest electricity in the world given our natural wind and solar resources.”

The Generation of Electricity in South Africa 2020

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The Generation of Electricity in South Africa 2024-01-30

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The Generation of Electricity in South Africa 2022-11-30

R 6 500.00(ZAR) estimated $374.39 (USD)*

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2018-10-31

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The Generation of Electricity in South Africa 2017-10-18

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The Generation of Electricity in South Africa 2016-08-08

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	4
2.	DESCRIPTION OF THE INDUSTRY	4
2.1.	Industry Value Chain	7
2.2.	Geographic Position	8
3.	SIZE OF THE INDUSTRY	9
4.	STATE OF THE INDUSTRY	10
4.1.	Local	10
4.1.1.	Trade	17
4.1.2.	Corporate Actions	18
4.2.	Regulations	18
4.2.1.	Enterprise Development and Social Economic Development	20
4.3.	Continental	21
4.4.	International	22
5.	INFLUENCING FACTORS	23
5.1.	Economic Environment	23
5.2.	Rising Operating Costs	24
5.3.	Supply and Quality of Coal	25
5.4.	Crime, Corruption and Mismanagement	25
5.5.	Technology, Research and Development (R&D) and Innovation	27
5.6.	Labour	27
5.7.	Electricity and Equipment Theft	30
5.8.	Environmental Concerns	30
6.	COMPETITION	31
6.1.	Barriers to Entry	32
7.	SWOT ANALYSIS	32
8.	OUTLOOK	33
9.	INDUSTRY ASSOCIATIONS	33
10.	REFERENCES	33
10.1.	Publications	33
10.2.	Websites	34
	APPENDIX 1	35
	Summary of Notable Players	35
	COMPANY PROFILES	37
	ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD	37
	ASSOCIATED ENERGY SERVICES (PTY) LTD	39
	AVON PEAKING POWER (RF) (PTY) LTD	41
	CENNERGI (PTY) LTD	43
	CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD	46
	DEDISA PEAKING POWER (RF) (PTY) LTD	48
	ESKOM HOLDINGS SOC LTD	50
	HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY	54
	KELVIN POWER (PTY) LTD	55
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	57
	PHELAN ENERGY GROUP (PTY) LTD	60
	ROSATOM CENTRAL AND SOUTHERN AFRICA (PTY) LTD	62
	SEF (SOC) LTD	64

Report Coverage

The report on the electricity sector examines current conditions and describes the developments in the generation of electricity in South Africa. Profiles for 13 companies are provided, ranging from Eskom to renewable energy producers such as Coria Investments, which trades as the Noblesfontein Wind Farm and the Hopefield Wind Farm Local Community Company.

Introduction

This report focuses on the generation of electricity in South Africa. Eskom, the state-owned utility, which dominates the country’s power generation, continues to struggle with declining electricity sales, looming coal shortages, financial instability, and corruption and mismanagement. Eskom reported a loss of R4.6bn in its annual financial results for the 2017/2018 financial year and more than R19bn in irregular expenditure has been identified. In a major blow for the majority of South Africans who are already struggling with increasing living costs, the National Energy Regulator of South Africa (Nersa) granted Eskom a 4.1% increase, which will come into effect in April 2019. However, Eskom also needs to increase its sales of electricity and make way for more players offering alternative forms of energy. The electricity generation and distribution landscape in South Africa is changing in accordance with its climate change commitment and the country has already introduced renewable energy through independent power producers. The draft Integrated Resource Plan (IRP) makes it clear that renewable energy will be the focus in the next decade.

Strengths

• South Africa has abundant resources for coal-fired electricity and renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Electricity is not being managed sustainably due to financial mismanagement and corruption.
• Reliance on Eskom for about 90% of South Africa’s current electricity requirements.
• South Africa has an ageing electricity distribution infrastructure.

Opportunities

• The price of most forms of renewable energy is decreasing, thus ensuring renewable energy becomes more attractive.
• Investment, skills and extra power brought by independent power producers.
• Job creation and increased energy supply from renewable energy projects.

Threats

• Corruption and mismanagement at Eskom.
• Increasing shortage of skills.

Outlook

Power utilities around the world are facing increasing costs and declining sales volumes. In South Africa this has been particularly evident over the past few years and is expected to continue as Eskom battles to meet debt obligations and continue operating in a stagnating economy. Although the decreasing cost of renewable energy is changing the energy sector globally, South Africa’s new energy plan does not commit to 100% renewable power in the foreseeable future. Energy analysts are keen to see the target for 2050. According to independent energy expert, Knox Msebenzi, South Africa’s energy policy needs to be revised within the next five to 10 years and the process must be led from the top down, with stakeholders being honest and transparent when providing opinions and recommendations. “All stakeholders must be involved in amending policy, government, communities, the economically advantaged and disadvantaged. Inclusivity is the only way to ensure policy truly meets the needs of the people.”

The Generation of Electricity in South Africa 2018

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The Generation of Electricity in South Africa 2025-09-22

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The Generation of Electricity in South Africa 2024-01-30

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The Generation of Electricity in South Africa 2022-11-30

R 6 500.00(ZAR) estimated $374.39 (USD)*

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2017-10-18

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The Generation of Electricity in South Africa 2016-08-08

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	5
2.2.	Geographic Position	6
3.	SIZE OF THE INDUSTRY	7
4.	STATE OF THE INDUSTRY	8
4.1.	Local	8
4.1.1.	Trade	12
4.1.2.	Corporate Actions	13
4.1.3.	Regulations	13
4.1.4.	Enterprise Development and Social Economic Development	15
4.2.	Continental	16
4.3.	International	18
5.	INFLUENCING FACTORS	19
5.1.	Economic Environment	19
5.2.	Rising Operating Costs	20
5.3.	Supply and Availability of Coal	20
5.4.	Corruption and Mismanagement	21
5.5.	Technology, Research and Development (R&D) and Innovation	22
5.6.	Labour	23
5.7.	Electricity and Equipment Theft	25
5.8.	Environmental Concerns	25
6.	COMPETITION	26
6.1.	Barriers to Entry	26
7.	SWOT ANALYSIS	27
8.	OUTLOOK	27
9.	INDUSTRY ASSOCIATIONS	28
10.	REFERENCES	28
10.1.	Publications	28
10.2.	Websites	28
	APPENDIX 1	30
	Summary of Major Players	30
	COMPANY PROFILES	32
	ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD	32
	ASSOCIATED ENERGY SERVICES (PTY) LTD	34
	AVON PEAKING POWER (RF) (PTY) LTD	36
	CENNERGI (PTY) LTD	38
	CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD	41
	DEDISA PEAKING POWER (RF) (PTY) LTD	43
	ESKOM HOLDINGS SOC LTD	45
	HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY	50
	KELVIN POWER (PTY) LTD	51
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	53
	PHELAN ENERGY GROUP (PTY) LTD	56
	ROSATOM CENTRAL AND SOUTHERN AFRICA (PTY) LTD	58
	SEF (SOC) LTD	60

Report Coverage

The report on the Electricity sector examines current conditions and describes the developments in the generation of electricity in South Africa. Profiles for 13 companies are provided, ranging from state-owned companies Eskom and the Central Energy Fund to small renewable producers such as Avon Peaking Power (RF) (Pty) Ltd which focuses on thermal energy, and Cennergi (Pty) Ltd, active in the solar sector.

Introduction

This report focuses on the generation of electricity in South Africa. State-owned utility Eskom, which supplies 95% of the country’s power, has been plagued with negative publicity relating to increasing electricity costs, corruption and mismanagement. Credit ratings downgrades, financial instability and declining electricity sales have made the utility heavily reliant on government funding and despite the high upfront capital costs of nuclear projects, government plans to go ahead with the nuclear build programme. This together with Eskom’s refusal to conclude supply contracts with the developers of new renewable energy power stations is threatening the viability of the entire renewable energy sector in South Africa.

Strengths

• South Africa has abundant sources for coal-fired electricity and renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Delays in the awarding of contracts in the Renewable Energy Independent Power Producer Programme (REIPPPP).
• Electricity is not being managed sustainably due to financial mismanagement and corruption.
• Reliance on Eskom which about 95% of South Africa’s current electricity requirements.
• South Africa has an ageing electricity distribution infrastructure.

Opportunities

• Investment, skills and extra power brought by IPPs.
• Job creation and increased energy supply from renewable energy projects.
• The price of most forms of renewable energy is decreasing, thus ensuring renewable energy becomes more attractive.

Threats

• Continuing corruption and mismanagement at Eskom.
• Eskom’s reluctance to sign more power purchase agreements with private producers could lower the attractiveness of South Africa as an IPP investment destination and caused uncertainty in the sector.
• Government’s determination to go ahead with the nuclear build programme, which will cost trillions, and threatens the supply of affordable electricity.
• Increasing shortage of skills.

Outlook

Power generation in the country is finally stable mainly due to additional power being generated by the four newly commissioned 800MW units at Medupi and Kusile as well as through the REIPPPP, which has added 4,200MW of generation capacity to the grid. A further 620MW is expected to be added to the grid in the 2017/2018 financial year. However, there is now an energy surplus and with the national decline in energy demand as a result of South Africa’s stagnating economy, the situation does not look promising for IPPs. Although Eskom stated that it is committed to government’s energy procurement programmes, the utility’s delay in signing power purchase agreements related to these programmes, has caused uncertainty in the sector. Eskom has also decided to go ahead with plans to build large new nuclear power stations, despite the increasing cost of compliance and safety for nuclear projects. According to former Energy Intensive User Group (EIUG) of Southern Africa chairperson Piet van Staden, “The optimum way forward may be to separate the transmission and market businesses and ensure it is managed sustainably, while the existing Eskom generation business should be exposed to competition and managed as efficiently as possible to the end of life over the next few decades.”

The Generation of Electricity in South Africa 2017

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The Generation of Electricity in South Africa 2025-09-22

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The Generation of Electricity in South Africa 2024-01-30

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The Generation of Electricity in South Africa 2022-11-30

R 6 500.00(ZAR) estimated $374.39 (USD)*

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2018-10-31

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The Generation of Electricity in South Africa 2016-08-08

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.1.1.	Corporate Actions	17
4.1.2.	Regulations	18
4.1.3.	Enterprise Development and Social Economic Development	19
4.2.	Continental	20
4.3.	International	22
5.	INFLUENCING FACTORS	23
5.1.	Economic Environment	23
5.2.	Rising Operating Costs	24
5.3.	Corruption and Mismanagement	25
5.4.	Labour	26
5.5.	Electricity Theft	28
5.6.	Technology, Research and Development (R&D) and Innovation	28
5.7.	Environmental Concerns	29
6.	COMPETITION	30
6.1.	Barriers to Entry	31
7.	SWOT ANALYSIS	31
8.	OUTLOOK	32
9.	INDUSTRY ASSOCIATIONS	33
10.	REFERENCES	33
10.1.	Publications	33
10.2.	Websites	33
	APPENDIX 1:	35
	Eskom Power Capabilities as at 1 September 2017	35
	APPENDIX 2:	37
	REIPPPP Capacity, Tariff and Investment Outcomes per Technology and Bid Window	37
	COMPANY PROFILES	38
	ACWA POWER SOLAFRICA BOKPOORT CSP POWER PLANT (RF) (PTY) LTD	38
	ASSOCIATED ENERGY SERVICES (PTY) LTD	40
	AVON PEAKING POWER (RF) (PTY) LTD	42
	CEF (SOC) LTD	44
	CENNERGI (PTY) LTD	48
	CORIA (PKF) INVESTMENTS 28 (RF) (PTY) LTD	51
	DEDISA PEAKING POWER (RF) (PTY) LTD	53
	ESKOM HOLDINGS SOC LTD	55
	HOPEFIELD WIND FARM LOCAL COMMUNITY COMPANY	59
	KELVIN POWER (PTY) LTD	60
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	62
	PHELAN ENERGY GROUP (PTY) LTD	64
	ROSATOM CENTRAL AND SOUTHERN AFRICA (PTY) LTD	66

Report Coverage

Generation of Electricity in South Africa describes the current market, the latest developments and discusses factors influencing the success of the sector. The report profiles 19 role players, including Eskom and the National Energy Regulator of South Africa (NERSA). Also profiled are companies in the solar sub-sector, including Phelan Energy Group (Pty) Ltd which launched the largest solar farm in Africa near De Aar in the Northern Cape. The solar farm provides power to about 175,000 households and employs 50 full-time members of staff.

Introduction

This report focuses on the generation of electricity in South Africa. State-owned utility Eskom supplies 95% of the country’s power, but it has been plagued by problems over the last five years. These include the deteriorating condition of its ageing power plants, delays and escalating costs to complete its new build programme, increasing operating costs, credit ratings downgrades and declining or stagnant electricity sales to key customers. Through the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Eskom has signed 65 power purchase agreements with Independent Power producers (IPPs), which will add 4,900MW of IPP capacity to the grid by 2020/21. However, in July 2016 the Eskom board announced that it will not sign any further power purchase agreements after the current round is finalised.

Strengths

• South Africa has abundant sources for renewable energy.
• South Africa is the largest electricity producer on the continent.

Weaknesses

• Eskom cannot currently supply the country’s generation needs.
• South Africa has an ageing electricity distribution infrastructure.

Opportunities

• Increased electricity prices could result in higher demand for solar products.
• Investment, skills and extra power brought by IPPs.
• Job creation and increased energy supply from current and future renewable energy projects.
• Pending installed capacity from the Medupi and Kusile power stations and the REIPPPP.

Threats

• Increasing shortage of skills.
• Strike action.
• The minimum local content threshold rule of 70% for solar water heater tanks and collector components is too stringent for local manufacturers.
• Uncertainty with regard to Eskom’s decision not to sign any more power purchase agreements with private producers could lower the attractiveness of South Africa as an IPP investment destination.

Outlook

South Africa’s electricity supply has stabilised over the past eight months, mainly as a result of government’s independent power producers’ programme, which has not only introduced private sector companies into the energy generation sector, but through the REIPPPP, has added 2,145MW to the grid and resulted in R194bn in direct investment. However, the future of the IPP programme is now uncertain following the Eskom board’s decision not to sign any further power purchase agreements with private producers. Eskom’s concern about its future revenue streams will come at a cost for South African consumers who will have to keep paying more for electricity each year after being warned by the utility in March 2016 to “brace for more electricity price hikes in the future.”

The Generation of Electricity in South Africa 2016

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Industry Landscape

R 1 330.00(ZAR) estimated $ 76.61 (USD)*

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The Generation of Electricity in South Africa 2025-09-22

R 20 000.00(ZAR) estimated $1151.98 (USD)*

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The Generation of Electricity in South Africa 2024-01-30

R 9 500.00(ZAR) estimated $547.19 (USD)*

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The Generation of Electricity in South Africa 2022-11-30

R 6 500.00(ZAR) estimated $374.39 (USD)*

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The Generation of Electricity in South Africa 2021-02-16

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The Generation of Electricity in South Africa 2020-01-15

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The Generation of Electricity in South Africa 2018-10-31

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The Generation of Electricity in South Africa 2017-10-18

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The Generation of Electricity in South Africa 2015-05-29

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	4
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.1.1.	Corporate Actions	16
4.1.2.	Regulations	16
4.1.3.	Enterprise Development and Social Economic Development	18
4.2.	Continental	19
4.3.	International	20
5.	INFLUENCING FACTORS	21
5.1.	Economic Environment	21
5.2.	Rising Operating Costs	23
5.3.	Government Intervention and Policy	24
5.4.	Labour	25
5.5.	Supply and Quality of Coal	28
5.6.	Electricity Theft	29
5.7.	Technology, Research and Development (R&D) and Innovation	29
5.8.	Environmental Concerns	30
6.	COMPETITION	31
6.1.	Barriers to Entry	32
7.	SWOT ANALYSIS	32
8.	OUTLOOK	32
9.	INDUSTRY ASSOCIATIONS	33
10.	REFERENCES	33
10.1.	Publications	33
10.2.	Websites	33
	COMPANY PROFILES	35
	Allied Electronics Corporation Ltd	35
	Associated Energy Services (Pty) Ltd	39
	CEF (SOC) Ltd	41
	Cennergi (Pty) Ltd	45
	Crest Operations (Pty) Ltd	48
	Current Automation (Pty) Ltd	50
	Darling Wind Power (Pty) Ltd	52
	Eskom Holdings SOC Ltd	54
	Kelvin Power (Pty) Ltd	58
	KGE Technology Two Thousand CC	60
	Kwikot (Pty) Ltd	62
	National Energy Regulator of South Africa	64
	Phelan Energy Group (Pty) Ltd	67
	Plan-My-Power (Pty) Ltd	68
	Sinetech (Pty) Ltd	70
	Solarzone (Pty) Ltd	72
	Solsquare Solar Heat (Pty) Ltd	74
	Sunflare Renewable Systems CC	76
	Teal and Green Trading (Pty) Ltd	78

Report Coverage

This report describes the current situation in the country, government’s attempts to ensure the reliable generation of electricity and factors influencing the sector’s success. The report also profiles 20 industry players, ranging from state-owned enterprise Eskom to small enterprises, Solarzone (Pty) Ltd and Darling Wind Power (Pty) Ltd, which are both involved in the renewable energy sector and employ ten people.

Introduction

This report focuses on the generation of electricity in South Africa, which is in a state of crisis. State-owned utility Eskom, which supplies 95% of power in the country, has been forced to implement controlled blackouts to avoid a total collapse of the national grid due to its ageing, deteriorating and under-serviced power plants that are struggling to meet demand. The latest series of load shedding started in November 2014 due to the collapse of a coal storage silo at the Majuba power plant which provides approximately 10% of South Africa’s electricity. While the load shedding has been intermittent since then, April 2015 experienced the highest number of consecutive days of load shedding. Eskom has stated that South Africans must “brace themselves for power-supply troubles for the next three years, while it tries not only to complete the building of new capacity but also to deal with a major maintenance backlog, which will take between 20 and 30 months to resolve.”The National 2010 Energy Plan called for a diversification of energy supply through independent renewable plants using wind, solar, biogas and other sources of power. Through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), a total of 79 projects with a capacity of 5,243 megawatt (MW), representing an investment of R168bn, have been approved by the Department of Energy (DoE).

Strengths

• Pending installed capacity from the Medupi and Kusile power stations and the REIPPPP.
• South Africa has abundant sources for renewable energy.
• South Africa is the largest electricity producer on the continent

Weaknesses

• Eskom cannot supply the country’s generation needs.
• Many of Eskom’s stations are past their mid-life and require major refurbishment.
• South Africa has an ageing electricity distribution infrastructure.
• The deteriorating quality of the coal supplied to Eskom’s stations.

Opportunities

• Increased electricity prices could result in higher demand for solar products.
• Job creation and increased energy supply from current and future renewable energy projects.
• Skills and extra power brought by IPPs.

Threats

• Cheap imports of solar water heaters threaten local manufacture.
• Increasing shortage of skills.
• Strike action.
• The minimum local content threshold rule of 70% for SWH tank and collector components is too stringent for local manufacturers.
• Uncertainty with regard to grid connections could lower the attractiveness of South Africa as an IPP investment destination.

Outlook

Despite Eskom’s new build projects and the REIPPPP, the short-term prospects for the generation of electricity remain negative. Eskom’s new build projects have been delayed because of quality and labour issues, the utility is under considerable financial pressure and as a result, the country’s growth forecast has been revised downward. The downgrade of Eskom’s long-term credit rating to junk status has led to a loss of confidence in the utility’s corporate governance and is expected to negatively affect its ability to access affordable external funding. While Government is eager to improve South Africa’s energy mix and expand the renewable energy programme, leading experts in the wind energy sector report that “continuing constraints to grid capacity and a lack of cohesion from government agencies may inhibit progress.” However they expressed optimism after the Minister of Energy’s announcement on 16 April 2015 that the DoE plans to “shorten procurement processes over the next year in an effort to accelerate the availability of energy capacity.”

The Generation of Electricity in South Africa 2015

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Supply Chain	4
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	8
4.1.	Local	8
4.1.1.	Corporate Actions	16
4.1.2.	Regulations & Government Programmes	16
4.1.3.	Enterprise Development and Social Economic Development	18
4.2.	Continental	20
4.3.	International	21
5.	INFLUENCING FACTORS	23
5.1.	Economic Environment	23
5.2.	Government Intervention and Policy	23
5.3.	Labour	25
5.4.	Rising Input Costs	28
5.5.	Supply and Quality of Coal	29
5.6.	Electricity Theft	30
5.7.	Technology	30
5.8.	Environmental Concerns	31
6.	COMPETITION	31
6.1.	Barriers to Entry	32
6.2.	Research and Development (R&D) and Innovation	32
7.	SWOT ANALYSIS	33
8.	OUTLOOK	34
9.	INDUSTRY ASSOCIATIONS	35
10.	REFERENCES	35
10.1.	Publications	35
10.2.	Websites	36
	ORGANOGRAM	37
	COMPANY PROFILES	39
	ALLIED ELECTRONICS CORPORATION LTD	39
	ASSOCIATED ENERGY SERVICES (PTY) LTD	43
	CEF (SOC) LTD	45
	CENNERGI (PTY) LTD	48
	CREST OPERATIONS (PTY) LTD	51
	CURRENT AUTOMATION (PTY) LTD	53
	DARLING WIND POWER (PTY) LTD	55
	EDISON POWER ELECTRICAL (PTY) LTD	57
	ESKOM ENTERPRISES SOC LTD	59
	IPSA GROUP PLC	62
	KELVIN POWER (PTY) LTD	64
	KGE TECHNOLOGY TWO THOUSAND CC	66
	KWIKOT (PTY) LTD	68
	NATIONAL ENERGY REGULATOR OF SOUTH AFRICA	70
	PLAN-MY-POWER (PTY) LTD	73
	SELECTED ENERGY (PTY) LTD	75
	SINETECH CC	77
	SOLARZONE (PTY) LTD	79
	SOLSQUARE SOLAR HEAT (PTY) LTD	81
	SUNFLARE RENEWABLE SYSTEMS CC	84

generation electricity south africa

The Generation of Electricity in South Africa 2025

The Generation of Electricity in South Africa 2024

The Generation of Electricity in South Africa 2022

The Generation of Electricity in South Africa 2021

The Generation of Electricity in South Africa 2020

The Generation of Electricity in South Africa 2018

The Generation of Electricity in South Africa 2017

The Generation of Electricity in South Africa 2016

The Generation of Electricity in South Africa 2015

Report Info

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Generation of Electricity in South Africa 2024-01-30

The Generation of Electricity in South Africa 2022-11-30

The Generation of Electricity in South Africa 2021-02-16

The Generation of Electricity in South Africa 2020-01-15

The Generation of Electricity in South Africa 2018-10-31

The Generation of Electricity in South Africa 2017-10-18

The Generation of Electricity in South Africa 2016-08-08

The Generation of Electricity in South Africa 2015-05-29

Table of Contents

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Generation of Electricity in South Africa 2025-09-22

The Generation of Electricity in South Africa 2022-11-30

The Generation of Electricity in South Africa 2021-02-16

The Generation of Electricity in South Africa 2020-01-15

The Generation of Electricity in South Africa 2018-10-31

The Generation of Electricity in South Africa 2017-10-18

The Generation of Electricity in South Africa 2016-08-08

The Generation of Electricity in South Africa 2015-05-29

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Generation of Electricity in South Africa 2025-09-22

The Generation of Electricity in South Africa 2024-01-30

The Generation of Electricity in South Africa 2021-02-16

The Generation of Electricity in South Africa 2020-01-15

The Generation of Electricity in South Africa 2018-10-31

The Generation of Electricity in South Africa 2017-10-18

The Generation of Electricity in South Africa 2016-08-08

The Generation of Electricity in South Africa 2015-05-29

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Generation of Electricity in South Africa 2025-09-22

The Generation of Electricity in South Africa 2024-01-30

The Generation of Electricity in South Africa 2022-11-30

The Generation of Electricity in South Africa 2020-01-15

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape