CEO Voice - April 2025
Dear SAWEA Members,
As we observed Freedom Month, we were reminded that political liberation and energy accessibility are deeply intertwined. Just as freedom empowers individuals and communities, access to reliable, clean energy unlocks socio-economic opportunities and fosters genuine energy independence for all South Africans. At SAWEA, we remain committed to advancing this vision—where sustainable energy is not a privilege, but a fundamental right.
During my recent study tour in China, hosted by the Global Wind Energy Council, I saw firsthand the urgency with which nations are advancing their energy transitions. This experience underscored the need for South Africa to accelerate its own efforts. Even countries like Spain and Portugal, with more mature renewable energy sectors, continue to learn critical lessons as we transition - highlighting the importance of a well-managed, reliable, modern, and resilient energy system to keep the lights on for millions of South Africans.
Fortunately, back home, we are beginning to see real momentum in the right direction. Wind power and renewable energy more broadly are increasingly taking centre stage in South Africa’s energy future.
Launch of the Department of Electricity & Energy
Officially launched in April 2025, the newly established Department of Electricity and Energy marks a significant milestone in the transformation of our national energy landscape. Its mandate is clear: to ensure that every South African has access to affordable, reliable, and sustainable electricity.
Under the governance of the Ministry, Eskom is now positioned to improve execution speed, attract investment, and align with global energy trends, all while safeguarding energy security.
Already, the Ministry has ushered in several key interventions, including the implementation of the South African Renewable Energy Masterplan (SAREM) and the release of the Draft Electricity Transmission Infrastructure Regulations. These follow the March 2025 Ministerial Determination to construct approximately 1,164 km of new 400 kV transmission lines—essential infrastructure for integrating new renewable generation into the grid.
NERSA Approved Congestion Curtailment
While we await the new infrastructure development from the TDP and ITPs, NERSA has approved congestion curtailment which will allow more wind energy generation in the short term. SAWEA recognises the importance of congestion curtailment as a mechanism to immediately increase grid capacity for more wind energy connections particularly in the Eastern Cape and Western Cape. As we understand, congestion curtailment will be limited to 3 years and restricted to the value of the MYPD6 Ancillary Services and Energy Imbalance line item (~R650mil/yr) which will require NERSA approvals. While the full conditions of the approval are still unclear, we expect that Eskom will provide clear direction on the allocation and application of congestion curtailment for both existing and new projects.
Independent Transmission Projects (ITPs)
The introduction of ITPs is another encouraging development. These projects will enable the private sector to support the expansion of transmission infrastructure—an essential step as we bridge the gap between generation and grid capacity. While the National Transmission Company of South Africa (NTCSA) advances its long-term Transmission Development Plan (TDP), ITPs and accompanying regulations will clarify the role of private actors and ensure grid readiness for incoming renewable projects. For the wind industry, this alignment between generation and transmission is vital to accelerating project rollout and investment certainty.
The Market Code: Toward a Competitive Electricity Market
The NTCSA’s ongoing stakeholder engagements on the draft Market Code signal a foundational shift towards a competitive wholesale electricity market. While further work is needed to finalise the necessary systems and processes, this code will be instrumental in shaping the future structure of the electricity sector. For the wind energy industry, the Market Code provides clarity and certainty on how projects will participate in a liberalised market—strengthening the investment case for new developments and supporting the expansion of grid capacity.
NERSA’s Approval of Network Charge Rules for Third-Party Wheeling
The recent NERSA approval of the Regulatory Rules on Network Charges for Third-Party Wheeling represents a major breakthrough. By establishing transparent, non-discriminatory, and cost-reflective tariffs, these rules create a more enabling environment for Independent Power Producers (IPPs) and private off-takers. This development is essential for scaling the wind energy sector, especially for projects relying on private Power Purchase Agreements (PPAs). With wheeling charges clarified, and the Market Code soon to be finalised, South Africa is edging closer to a truly open, competitive energy market.
A Win for Workforce Development: Wind Turbine Operator Skills Programme Approved
In a major win for industry capacity-building, the Quality Council for Trades and Occupations (QCTO) has officially approved the Wind Turbine Operator Skills Programme. This milestone—driven by the Social Impact Standing Committee (SISC) and supported by EWSETA—marks a critical step in developing a skilled workforce for the wind sector. By opening early career pathways for unemployed youth and school leavers and enabling Skills Development Providers (SDPs) to become accredited training institutions, we are cultivating the talent pipeline that will power the next generation of wind energy projects across South Africa.
SAWEA Welcomes a New Team Member
To strengthen our focus on member engagement and communication, we are pleased to welcome Mafiwa Ramalebana as our new Communications & Digital Specialist. Mafiwa will lead SAWEA’s member engagement strategy, ensuring that our communications are timely, relevant, and impactful.
As we move into the second quarter of 2025, I’d also like to remind you that we are just five months away from our flagship Windaba Conference & Exhibition. We look forward to yet another dynamic and forward-thinking gathering of industry leaders, policymakers, and innovators. Together, let us continue to advance South Africa’s energy future – powered by wind, driven by purpose.
Regards,
Niveshen Govender
CEO
