Energy

South Africa’s power shift Begins

South Africa's president Cyril Ramaphosa highlighting the Electricity Regulation Amendment Act as a game-changer in tackling load shedding and ensuring long-term energy security. (Image source: Africa Energy Chamber)

South Africa is entering a new chapter of energy sector reform, with President Cyril Ramaphosa highlighting the Electricity Regulation Amendment Act as a game-changer in tackling load shedding and ensuring long-term energy security

In his 2025 State of the Nation Address, he stressed the Act’s significance in restructuring the electricity market by increasing private sector participation and fostering competition in power generation.

Effective from 1 January 2025, the Act lays the groundwork for a more open electricity market, allowing multiple entities to generate and sell power. This represents a major departure from Eskom’s traditional monopoly, creating opportunities for independent power producers to enhance efficiency and accelerate energy diversification. Ramaphosa has underlined that this shift will not only boost generation capacity but also attract private sector investment into vital infrastructure, particularly transmission networks that have suffered from underinvestment and outdated technology.

Load shedding over?

South Africa’s Energy Action Plan, introduced to address the electricity crisis, has already contributed to a significant reduction in load shedding over the past year. Investments in transmission infrastructure are advancing to accommodate new renewable energy projects, while efforts to improve Eskom’s coal plant operations have intensified, with maintenance initiatives extending the life of key power stations.

Additionally, over 5,000MW of renewable capacity has been secured through the Renewable Energy Independent Power Producer Procurement Program, with upcoming solar and wind projects set to expand supply. JUWI recently committed US$320mn to construct three solar projects with a combined capacity of 340MW in 2025, while Eskom has restored the second unit of the Koeberg nuclear power plant. Large-scale battery storage solutions are being deployed to improve grid stability—AMEA Power is developing the Gainfar and Boitekong projects, each with a capacity of 300 MW—while gas-to-power solutions are being explored to provide flexible backup capacity.

As the energy market undergoes this transformation, the upcoming Africa Energy Week (AEW): Invest in African Energies 2025 conference will be a pivotal event for engaging investors, policymakers, and industry leaders. Set to take place in Cape Town from September 29 to October 3, AEW will focus on attracting private investment in energy infrastructure, with an emphasis on renewables, natural gas, and critical transmission projects.

With South Africa aiming to secure US$13bn in climate finance for its Just Energy Transition, AEW will also facilitate discussions on balancing decarbonisation with energy security and economic growth. Beyond domestic implications, an improved electricity infrastructure could enhance South Africa’s ability to export power to neighbouring nations, reinforcing its role as a regional energy leader. As the country moves toward a more sustainable and investment-friendly energy landscape, the coming months will be crucial in determining whether it can finally leave load shedding behind.

Also read about JUWI's construction plan here

KenGen sees profits surge after cost-cutting drive

Peter Njenga, CEO and managing director, KenGen (PHOTO CREDIT: KenGen)

Kenya Electricity Generating Company (KenGen) has reported a 79% growth in profits after tax for the six months ending 31 December 2024, driven by aggressive cost-cutting and operational efficiencies

East Africa’s largest electricity producer said that its pretax profits for the six-month period reached 7.95 billion shillings (US$61.63mn), which accentuated its resilience in a shifting energy landscape, according to Peter Njenga, KenGen's managing director and chief executive officer.

“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” he said.

“We are optimising our assets, streamlining operations and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country.”

KenGen remains at the forefront of Kenya’s renewable energy drive, supplying 4,291 GWh of electricity in the half-year period, up from 4,211 GWh in the previous period.

The increase was primarily supported by improved hydrology and availability of its generation fleet, the company reported.

Looking ahead, the group is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition.

Between 2025 and 2027, the company plans to add 194.4 MW of installed capacity across geothermal, hydro and solar projects, along with 100 MWh of battery energy storage to enhance grid stability.

In October 2024, KenGen unveiled its G2G 2034 roadmap for the coming decade, with a clear focus on expanding geothermal, wind and solar investments, as well as advancing operational efficiency and integrating the latest technology into its work with the goal of 100% renewable energy.

Listed on the Nairobi Stock Exchange (NSE), the group currently has an installed generation capacity of 1,785 MW, of which over 93% is drawn from green sources, namely hydro (826 MW), geothermal (754 MW) — an area in which it has pioneered for many years — and wind (25.5 MW), with the balance coming from traditional thermal energy sources.

KenGen is also now helping other African nations tap into their own geothermal potential after honing its expertise at Kenya’s Olkaria fields, following projects in Ethiopia, Djibouti and Tanzania.

It is currently working on a contract to assess geothermal potential in three prospective regions of Eswatini with a view to establishing the feasibility of developing a geothermal power plant.

“We are driving the future of energy in Kenya,” said Njenga. “Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come.”

Kengen reveals new plan to scale up and diversify Kenya's energy portfolio

Can RBM lead South Africa’s energy transition?

RBM has now committed to approximately 500MW of renewable energy through various PPAs. (Image source: Adobe Stock)

Richards Bay Minerals (RBM) has finalised its third Power Purchase Agreement (PPA), partnering with Red Rocket South Africa (Pty) Ltd for Phase 1 of the Overberg Wind Farm

Located near Swellendam in the Western Cape, the Overberg Wind Farm is set to commence construction in the first half of 2025, with operations expected to begin by December 2026. The project will be developed in two phases, with RBM securing 230MW of the total 380MW export capacity. Once operational, the wind farm is projected to cut RBM’s greenhouse gas (GHG) emissions by approximately 30% annually (0.7 Mt CO2e).

With this latest agreement, RBM has now committed to approximately 500MW of renewable energy through various PPAs.

RBM’s renewable energy transition began with the announcement of the Bolobedu Solar PV project in October 2022. Situated about 120 km east of Polokwane in Limpopo, the 130MW solar plant is designed to generate approximately 300 GWh of energy annually, with construction already underway.

In June 2024, RBM secured another renewable energy deal with the Khangela Emoyeni Wind Farm, located near Murraysburg, spanning the Western Cape and Northern Cape provinces. This 140MW wind project, which began construction in July 2024, is expected to supply RBM with around 460 GWh of renewable energy per year through a wheeling arrangement with Eskom.

A quicker transition?

Commenting on RBM’s renewable energy commitments, Werner Duvenhage, managing director of RBM and Rio Tinto Iron and Titanium (RTIT) African Operations, stated, “This announcement comes shortly after the United Nations International Day of Clean Energy on 26 January 2025, which reminds us of the need to transition from our reliance on fossil fuels for the betterment of our planet and people. At RBM, we are taking real action to displace electricity generated from coal with solutions like solar PV, wind, and other renewable technologies.

“The Overberg Wind Farm project represents the biggest project in RBM renewable energy procurement and is a key step towards RBM achieving its commitment in line with the target set by the Rio Tinto Group, to reduce its emissions by 50% by 2030, relative to the 2018 baseline, and achieve net zero by 2050.”

Matteo Brambilla, CEO of Red Rocket South Africa, emphasised the impact of the project, remarked, “The signing of this PPA for the Overberg Wind Farm is a significant milestone in our ongoing partnership with Richards Bay Minerals. This project will deliver 230MW of clean energy to the South African grid, driving positive environmental impact for RBM while contributing to South Africa's energy transition. At Red Rocket, we are proud to support RBM's commitment to a more sustainable future and to be at the forefront of delivering innovative, impactful renewable energy solutions.”

RBM currently consumes approximately 1.8 TWh (Terawatt-hours) of electricity per year, with energy use accounting for about 1.6 Mt CO2e—roughly 80% of its annual GHG emissions.

Collectively, the three renewable energy projects—Overberg Wind Farm, Khangela Emoyeni Wind Farm, and Bolobedu Solar PV—are expected to reduce RBM’s Scope 1 and 2 emissions by around 60% (1.4 Mt CO2e) from a 2018 baseline.

Also read: Envision Energy turbines for Egypt wind project

Uganda launches Ncwera mini hydro project

The Ncwera project is expected to be completed within a year and is designed to align with key national policies, including the National Development Plan (NDP IV), Vision 2040, and Sustainable Development Plan 7. (Image source: Adobe Stock)

Uganda has launched the Ncwera Mini Hydro-Power Project in Mitooma District to boost rural electrification, enhance businesses, and support economic growth

Deputy speaker Thomas Tayebwa has emphasised that unreliable and costly electricity continues to hinder the potential of businesses, schools, healthcare facilities, and households across Uganda

Tayebwa made these remarks while presiding over the ceremony for the Ncwera Mini Hydro-Power Project in Ruhinda North County, Mitooma District.

The project is part of the Electricity Access Scale-Up initiative spearheaded by the Uganda Energy Credit Capitalisation Company (UECCC) and is being financed through the ORIO Infrastructure Fund from the Netherlands.

Tayebwa, who also serves as the area representative, highlighted that the project would not only provide electricity to households but also create new economic opportunities.

"Farmers will be able to process their produce efficiently, small businesses will thrive, and our children will have better opportunities to study," he stated.

He praised the Ministry of Energy and Mineral Development for extending key energy infrastructure to communities and urged further efforts to expand similar projects to other underserved areas.

Energy Minister Ruth Nankabirwa emphasized that the project aligns with the government’s goal of delivering affordable electricity to drive industrial growth and economic transformation.

"I am pleased to note that in the agreement that was signed, the tariff is 5.3 US cents per unit, which is good. We have been trying to reduce the cost of electricity and since hydropower is the cleanest source of energy, it is the cheapest," said Nankabirwa.

"We have two sub-counties that have electricity poles without electricity wires, which means people there do not have access to electricity. There has also been a lot of load shedding in the district, which has affected many businesses," Agasha noted.

"With a growing need for energy in rural areas that have limited access to the grid network, we believe that these mini-hydropower plants will service communities and spur economic development through industrialisation, which will in turn increase employment and opportunities for the growing population," Van Ettro said.

UECCC managing director, Roy Nyamutale Baguma, revealed that in addition to Mitooma District, the ORIO Mini Hydropower Project will support the implementation of eight more projects across six districts: Bushenyi, Kasese, Bundibugyo, Kabarole, Bunyangabo, and Hoima.

He further noted that upon completion, the nine mini-hydropower sites will collectively generate 6.7 megawatts and establish a 288-kilometre distribution network, significantly enhancing rural electrification.

"The project sites are located in hard-to-reach areas with challenging topography and geophysical conditions, which makes it inefficient to wheel power over long distances to such very hard-to-reach places," said Baguma.

He confirmed that the Ncwera project is expected to be completed within a year and is designed to align with key national policies, including the National Development Plan (NDP IV), Vision 2040, and Sustainable Development Plan 7.

Also read: Siemens wins award, transforms Ghana’s electricity management

Mission 300 electrification drive nets US$8bn cash boost

Mission 300 aims to electrify more African homes. (Image credit: AfDB)

An initiative to connect 300 million more Africans to electricity by 2030 has won new cash pledges worth over US$8bn, following the Africa Energy Summit in Dar es Salaam this week.

The summit was organised by the Tanzanian government and Mission 300, a collaboration between the African Development Bank (AfDB), the World Bank Group and global partners to address Africa’s electricity gap using new technology and innovative financing.

New funds were pledged from lenders such as the Islamic Development Bank (IsDB) and the Beijing-based Asia Infrastructure Investment Bank (AIIB), among others.

AfDB president Dr Akinwumi Adesina called for active involvement and collaboration among all stakeholders, from bilateral and multilateral institutions to the private sector.

“This is mission critical,” he told delegates gathered at the event. “Our mission here is to say we need everybody.”

Nearly 600 million Africans still lack access to electricity, a critical resource for economic development and job creation.

“With power, Africa will not just meet expectations but exceed them, becoming a competitive and prosperous continent.”

Mission 300 will incorporate robust accountability measures, including country-specific monitoring and evaluation systems and the Africa Energy Regulatory Index to track progress.

“This is all about accountability, transparency,” said Adesina.

About half of planned new connections will come from existing grids, according to officials at the summit, while the rest will come from a range of renewable energy sources.

Donor foundations are also expected to support the collaboration, with Rajiv Shah, president of The Rockefeller Foundation, calling on global philanthropists to get behind the idea.

“What is at stake is the future of African economies, the future of African young people and the future of our world,” he said, adding that his foundation was committing US$65mn to the programme.

United Nations deputy secretary-general Amina Mohammed said that achieving these targets would also require significant financial engineering and private sector engagement.

“The private sector’s got to lean in and it won’t lean in if the message is that your finance environment is not conducive to us,” she said, calling for reforms in credit rating systems and financial architecture.

“When you want to put together the financing for energy it is not easy and it requires many people at the table in parallel with what we are doing, the policy and the regulation, designing these pipelines and getting the money ready.”

There is also an environmental dimension behind the initiative, with an emphasis on the toll of traditional cooking methods based on firewood and charcoal, resulting in the estimated deaths of 600,000 women and children annually due to smoke exposure.

World Bank president Ajay Banga expressed optimism about Mission 300, saying its objectives are achievable through hard work, particularly in ensuring a conducive environment for the private sector to participate.

He emphasised the need for predictability of currencies, regulatory frameworks and land acquisition to incentivise investments that support the initiative.

Among the countries to unveil new or additional contributions to the AfDB-managed Sustainable Energy Fund for Africa (SEFA) as it expands energy access across Africa, including through the Mission 300 partnership were the UK, Denmark, Spain and France.