082 901 7452

Bloubergstrand, Cape Town

Latest Renewable Energy News

by | Apr 28, 2026 | Uncategorized | 0 comments

EE business intelligence pic. Latest solar & renewable energy news.

Latest Renewable Energy News

1. Envusa’s 520 MW Koruson 2 project marks milestone in mining decarbonisation drive.

Envusa Energy has inaugurated its flagship Koruson 2 (K2) cluster, a R15-billion, 520 MW wind and solar development on the Northern and Eastern Cape border, marking one of South Africa’s largest privately developed renewable energy projects to date. The cluster combines 240 MW of solar PV at Mooi Plaats with two 140 MW wind farms, Umsobomvu and Hartebeesthoek. Around 380 MW is already feeding into the grid, with full commercial operation expected by mid-2026. Developed by Envusa Energy – a licensed electricity trader and joint venture between Anglo American and EDF Power Solutions – the project is structured to supply renewable electricity to a portfolio of large industrial users, notably mining operations including De Beers Group, Kumba Iron Ore and Valterra Platinum, through Eskom’s transmission network using wheeling arrangements. Long-term offtake agreements underpin the investment, aligning with Anglo American’s decarbonisation targets and broader industry shifts toward energy security and lower emissions. Koruson 2 builds directly on the earlier Koruson 1 cluster, a 420 MW wind development comprising three wind farms procured under Bid Window 5 of the REIPPPP. Koruson 1 also includes the major transmission infrastructure – notably the Koruson main transmission substation designed and constructed by EDF Power solutions – enabling large-scale grid integration and effectively creating a renewable energy corridor in the region. The two clusters illustrate the rapid scaling of private, hybrid wind-solar developments in South Africa, combining utility-scale generation with new trading and wheeling models. They also highlight the growing role of mining and industrial customers as anchor offtakers in the evolving electricity market. With further projects in Envusa’s pipeline and ambitions to deliver 3 to 5 GW  of renewable energy capacity by 2030, Koruson is emerging as a template for large-scale, privately financed renewable ecosystems in South Africa’s power system.

2. Big renewable energy builds gather pace as solar, BESS and wind pipeline deepens.

A flurry of other large-scale renewable energy projects reported over the past two weeks indicates further continued momentum in South Africa’s renewable energy sector. Mulilo has reached financial close on its 337 MW Middlepunt solar PV project in Free State, procured under REIPPPP Bid Window 6. The project is notable for what the developer describes as the lowest tariffs yet achieved under the programme. In parallel, Mulilo has also advanced the 380 MW Beaufort West Solar PV project in the Western Cape to financial close under a private power purchase agreement (PPA) in association with licensed electricity trader, NOA Group. In Limpopo, Voltalia has commissioned the 148 MW Bolobedu solar plant under a long-term corporate PPA with a unit of mining group, Rio Tinto. The Beaufort West and Bolobedu projects highlight the growing role of private offtake in enabling new generation capacity outside of traditional state-led procurement frameworks. Energy storage is also gaining traction. The R1.4-billion 76 MW / 304 MWh Mercury BESS project procured under Bid Window 2 of the Battery Energy Storage IPP programme is set to commence construction, targeting commercial operation in late 2027, and adding to a growing pipeline of large-scale storage assets aimed at firming variable renewable supply and supporting system stability. Meanwhile, industry data points to a substantial forward pipeline, with the Global Wind Energy Council indicating some 17 GW of advanced wind projects under development in South Africa. This suggests a strong medium-term outlook, albeit contingent on transmission expansion and grid access. These developments indicate that publicly and privately procured, privately financed and constructed utility-scale renewable energy and storage projects, with corporate offtakers and hybrid project configurations, are becoming increasingly central to unlocking new capacity in South Africa’s constrained electricity system.

3. Meanwhile, Virginia and Oya controversies raise red flags for renewable project oversight.

An investigative report by News24 has placed a major renewable energy project under intense scrutiny, raising concerns about governance, compliance and oversight in South Africa’s public procurement programmes. At the REIPPPP Bid Window 6 Virginia Solar Park, valued at R4.7-billion and developed by Red Rocket, multiple investigations are reportedly under way into allegations of BEE fronting, irregular construction management appointments, manipulated permits and labour violations by the Chinese EPC contractor and its subcontractors. Documents are said to point to systemic compliance failures, even as construction continues toward a 2026 commercial operation target. Red Rocket CEO Matteo Brambilla has described the coverage as inaccurate and sensationalised and promised a no‑holds‑barred, exclusive interview with EE Business Intelligence, which will be published shortly. In the meantime, similar concerns have emerged in respect of the multi-billion-rand RMIPPPP 128 MW Oya Hybrid Energy project in the Karoo, where a different Chinese EPC contractor faces allegations of visa violations, worker abuses, safety breaches and even fatalities. This project is now also at the centre of claims of “serious misconduct”, with labour practices and site conditions under growing scrutiny. The Virginia and Oya cases point to a troubling pattern: pressures to deliver large-scale projects at pace and cost may be colliding with localisation requirements, labour regulations, visa and work permit bureaucracy, and compliance oversight. While developers and contractors maintain that operations are lawful, the scale and similarity of the allegations suggest deeper systemic risks. The key issue now is whether these incidents are isolated contractor-level failures or indicative of broader governance weaknesses in project delivery. If the latter, regulators may face increasing pressure to tighten oversight across both public and private renewable energy programmes at a critical stage of South Africa’s electricity market reform.

4. New deals and generation builds outside South Africa signal a regional power shift.

Beyond South Africa, several project announcements and milestones over the past two weeks further indicate the acceleration of utility-scale renewables in the Southern African region. Zambia is emerging as a focal point of activity, dominating the headlines with multiple developments aimed at diversifying away from hydro dependence. Most prominent is the US $315-million Leopards Hill project, where Globeleq has begun construction of a 250 MW solar plant paired with a 150 MW / 600 MWh battery system near Lusaka – set to become the country’s largest hybrid renewable facility. In parallel, a separate Chinese-backed US $1.5-billion programme targeting 900 MW of new capacity highlights Zambia’s push to rapidly scale generation and stabilise a system heavily exposed to drought-related hydropower shortfalls. Additional progress includes the commissioning of the 50 MW Mansa solar plant and financial close momentum around the Leopards Hill development, reinforcing a broader pipeline of solar and hybrid projects across the country. Together, these initiatives reflect a coordinated strategy to enhance energy security and support mining and industrial demand. Elsewhere in the region, Botswana has signed a deal with Oman for a planned 500 MW solar project near Maun, signalling growing cross-border investment flows into African renewables. The scale and structure of these projects – often combining solar PV with battery storage and backed by long-term offtake arrangements – highlight a shift toward dispatchable renewable capacity and bankable private-sector models. Hybridisation is increasingly seen as essential to managing intermittency and improving grid reliability in constrained systems. These developments point to a maturing regional market, where energy security concerns, industrial demand and climate pressures are converging to drive a new wave of large-scale, privately financed renewable energy investments across Southern Africa.

5. Reform, resistance and looming deadlines in South Africa’s electricity market agenda.

South Africa’s electricity market reform agenda has entered a polemic phase, with policy, regulatory and institutional tensions converging. Government is said to be preparing a new “single window” policy paper intended to consolidate and clarify the reform trajectory. It is hoped that the document will provide a coherent statement of the transformation of the electricity supply industry and a benchmark against which progress can be measured. This comes amid acknowledgement by the Energy & Electricity Minister that reform is complex and will proceed through a phased rather than a “big bang” transition. At the centre of reform is the unbundling of Eskom. A detailed implementation plan for the establishment of an independent transmission system operator (TSO) is due by August 2026, with the target for the independent TSO launch now brought forward to December 2027 – a key milestone in enabling a competitive electricity market. However, the rules governing trading of electricity are proving contentious. NERSA’s revised draft electricity trading rules, dominated by changes unilaterally introduced by Eskom, and extending far beyond third-party electricity trading by licensed traders to include rules for generation by IPPs, bilateral private PPAs and wheeling, drew widespread outrage by stakeholders, and had to be withdrawn for rework. At the same time, the electricity Market Code and Market Rules remain work in progress at NERSA. While NERSA has finalised Grid Access Rules (GAR), Eskom’s continued selective application of its own Interim Grid Capacity Allocation Rules and connection processes continue to delay projects and frustrate market entrants. Eskom CEO Dan Marokane has emphasised the need to maintain Eskom’s operational and financial sustainability – a tension that underpins much of the current debate. Overall, while reform momentum is evident, the outcome will hinge on whether trading rules, grid access frameworks and institutional restructuring align to genuinely enable – rather than slow down and limit – competition and investment in South Africa’s evolving electricity market.

6. Long-awaited Electricity Pricing Policy nears release amid tariff pressures.

South Africa’s long-awaited new Electricity Pricing Policy (EPP) is back in focus, with Energy & Electricity Minister Kgosientsho Ramokgopa signalling that a revised framework is in its final stages and could soon be released for public scrutiny. The move comes against the backdrop of sustained electricity price increases, with Eskom tariffs rising by about 8.76% from April 2026 and further municipal increases of around 9% expected from July. These hikes have intensified pressure on households, businesses and energy-intensive industries already grappling with weak economic growth and rising input costs. Ramokgopa has framed the new policy as a potential “gamechanger” aimed at delivering a more “fair and affordable” pricing structure, while also maintaining the financial sustainability of the power system. Central to the reform is a re-examination of how electricity tariffs are structured and allocated across customer classes, including the balance between cost-reflectivity, cross-subsidies and industrial competitiveness. The Minister has tasked South African National Energy Development Institute (SANEDI) with supporting the overhaul, reflecting the technical complexity of redesigning pricing in a rapidly changing electricity sector marked by growing private generation, wheeling, trading and market reform. The new EPP process has been years in the making, with repeated commitments to address what government has previously described as “untenable” electricity prices. However, progress has been slow, and the absence of an updated EPP has left regulators and policymakers navigating tariff decisions without a clear, modernised framework aligned to market restructuring. Key tensions remain unresolved. Lower prices for vulnerable households and strategic industries must be balanced against Eskom’s revenue requirements, municipal financial sustainability and the need to incentivise new investment in generation and networks. With the draft policy about to enter the public domain, scrutiny will centre on whether it can reconcile these competing objectives.

8. Three-year 7% Eskom annual wage increase pact brings stability – but not consensus.

Eskom has concluded a three-year wage agreement providing for a 7% annual increase, bringing to a close months of contentious negotiations – but leaving a significant labour divide unresolved. The deal, effective from 1 July 2026, was signed with the National Union of Mineworkers (NUM) and Solidarity, which together represent a majority of employees in the bargaining unit. With these unions accounting for more than two-thirds of workers, the agreement is binding across the workforce, including members of the National Union of Metalworkers of South Africa (NUMSA), which rejected the offer. The settlement includes a 7% annual wage increase over three years, alongside adjustments to benefits and once-off payments, and is framed by Eskom as providing cost certainty and operational stability. The increase is significantly above current inflation levels, but below initial union demands, with NUM previously seeking increases as high as 15%. NUMSA’s rejection and declaration of a deadlock indicates ongoing tensions, with the union arguing the offer fails to reflect Eskom’s improving financial position and rising cost of living pressures. Eskom has pushed back on claims that higher increases were budgeted, emphasising affordability constraints and the need for financial discipline. The agreement also comes amid public scrutiny over executive remuneration, following reports of substantial increases in senior management pay, further fuelling perceptions of inequity in the wage negotiations. While the deal averts the immediate risk of widespread industrial action and provides a degree of labour stability, it highlights the continuing tension between cost containment, workforce expectations and broader financial sustainability at the utility. As Eskom navigates restructuring and market reform, operational stability and wage dynamics remain a critical – and politically sensitive – component of its operational and financial trajectory.

9. Joburg and City Power under strain as funding dries up and debts mount.

The financial position of City of Johannesburg and its electricity utility City Power has come under renewed scrutiny following a series of setbacks highlighting mounting fiscal and operational pressures. Most notably, the metro has failed to secure additional funding from French development agency AFD, a long-standing lender. The refusal is reportedly linked to non-compliance – which the City denies – with conditions attached to a prior R2.5-billion loan, including shortcomings in reporting and governance. The rejection comes as the City seeks to refinance debt and fund infrastructure, raising concerns over its ability to access external capital markets. The funding setback adds to broader financial fragility within the municipality, which has struggled to pass budgets amid rising salary costs and service delivery failures. Analysts warn that governance concerns and weakened creditworthiness could further constrain borrowing options and increase financing costs. At utility level, City Power is facing intensifying liquidity pressures. A diesel supplier has launched a High Court claim exceeding R5-million over unpaid fuel deliveries, underscoring persistent payment delays. More broadly, insiders indicate that the utility may owe suppliers over R1.3-billion and is intermittently struggling to meet monthly payments and arrear debt to Eskom for bulk electricity purchases. These developments point to a deepening cycle of cash flow constraints, deteriorating supplier relationships and rising legal risk. For electricity distribution, the implications are significant: constrained maintenance spending, increased reliance on diesel generation, and heightened risk to supply reliability. Johannesburg’s situation mirrors a wider national pattern of municipal financial distress, but as South Africa’s biggest city, its scale and economic importance make the stakes particularly high. Without credible financial recovery and governance reform, the City’s ability to sustain reliable electricity services – and attract future investment – remains increasingly uncertain.

10. New power sector funding targets grid constraints and energy transition risks.

A series of financing announcements over the past two weeks points to strengthening momentum in South Africa’s power sector investment landscape, with a clear focus on grid expansion, climate finance and sustainability-linked funding. Most prominent is a €200-million (about R4-billion) concessional climate loan from Germany aimed at supporting transmission grid expansion and enabling additional renewable energy capacity. The funding directly targets one of the sector’s most binding constraints: limited grid capacity, which has stalled multiple wind and solar projects awaiting connection. The agreement also forms part of broader cooperation between South Africa and Germany on critical minerals, green hydrogen and battery value chains, with additional funding exceeding €270-million under discussion. This signals a widening of the energy transition beyond generation into industrial and supply-chain development. Parallel to sovereign-level climate finance, capital markets activity has also intensified. Standard Bank has closed a US $800-million (about R13-billion) sustainability-linked syndicated loan – the largest such transaction by an African borrower this year – attracting strong participation from international lenders. The facility links borrowing costs to sustainability performance metrics, embedding energy transition objectives into mainstream financing structures. In addition, German and South African organisations have launched initiatives to support workers affected by the energy transition, reflecting growing recognition of the social dimensions of decarbonisation alongside infrastructure investment. These developments highlight a maturing investment ecosystem where concessional public finance is being complemented by large-scale private capital flows, increasingly tied to measurable sustainability outcomes. However, the emphasis on grid infrastructure is telling. Without accelerated transmission expansion and system integration, the ability to translate financial commitments into operational capacity – and ultimately improved energy security – will remain constrained.

Source: Chris Yelland Market Round UP

Contact us to see how we can save your business.