CEO Voice - January 2025
Dear SAWEA Members,
As we welcome 2025, we are excited about the opportunities and successes that lie ahead. At the close of 2024, the Board and Executive Management convened to shape the Association’s vision for 2025, ensuring alignment with the industry's evolving needs. The following key outcomes were identified:
1. Foster Collaboration Between SAWEA and Key Stakeholders
2. Establish a Financially Resilient and Sustainable Association
3. Build a Membership of Choice with Exclusive Benefits and Opportunities
4. Enhance Member Engagement and Active Participation
These strategic priorities are tailored to address challenges, leverage opportunities, and reinforce our position as the leading voice for wind energy in South Africa. By driving advocacy, enhancing member value, and fostering collaboration, SAWEA will continue to shape the future of wind energy, ensuring its integration into the country’s renewable energy framework while delivering meaningful outcomes for its members.
Energy Sector Transformation in South Africa
Over the past three years, the transformation of South Africa’s energy sector has taken centre stage. Starting with the launch of the Energy Action Plan in 2022, to the signing of the Electricity Regulation Amendment Act by President Cyril Ramaphosa into law - marking a significant milestone in 2024. The Electricity Regulation Amendment Bill set in motion far-reaching reforms to open up South Africa’s electricity sector. The emergence of a competitive electricity market has driven growth in the green economy, with new renewable energy projects coming online.
Guided by the Energy Action Plan and complementary regulatory frameworks, President Ramaphosa has demonstrated his commitment through key interventions, including Eskom’s unbundling, NECOM and the establishment of the Ministry of Energy & Electricity within the National Government of Unity. Furthermore, in his address at the launch of South Africa’s G20 Presidency, the President identified mobilising finance for a just energy transition as one of his administration’s top priorities.
With the State of the Nation Address approaching, we anticipate that discussions on the green economy, grid infrastructure challenges, and overall energy security will dominate the national agenda.
Policy Reform and the Role of Wind Energy
South Africa’s electricity sector accounts for 41% of the country’s greenhouse gas emissions, highlighting the urgent need for decarbonisation and a transition to renewable energy.
In 2024, significant strides were made in energy sector policy reform to address the country’s electricity crisis. The enactment of the Electricity Regulation Amendment Bill ushered in a new era, enabling independent power producers (IPPs) to play a greater role in attracting investment. This move sent a strong signal to investors, reaffirming South Africa’s commitment to coexisting private and public procurement models for a sustainable and secure energy future. However, for the sector to experience exponential growth, grid constraints must be effectively addressed.
The unbundling of Eskom, a crucial policy reform, has given rise to the National Transmission Company South Africa (NTCSA) and the rollout of the Transmission Development Plan (TDP). With the Independent Transmission Projects (ITP) expected to drive the construction of new transmission lines, we are making tangible progress toward resolving grid bottlenecks.
Aligned with the IRP2019, the TDP serves as a key roadmap for shaping South Africa’s energy future. Meanwhile, under the draft IRP 2024, wind energy’s contribution is projected to reach 69GW–76GW by 2050 across various scenarios. Although the absence of wind energy allocation in Bid Window 7 remains a challenge, these projections reinforce our confidence that wind energy will continue to play a pivotal role in public procurement—provided that grid constraints are adequately addressed.
2025: The Year of Grid
In 2025, our top priority remains advocating for improved, strengthened, and expanded transmission infrastructure, recognising it as the backbone of a thriving wind energy sector. Our commitment to driving this transformation is stronger than ever, as we work towards implementing our 2025 vision.
To achieve this, we will deepen our collaborations with key stakeholders, ensuring that South Africa builds a resilient and future-proof transmission grid that can support the increasing demand for renewable energy.
SAWEA AGM and Election of a New Board
Our Annual General Meeting (AGM) is scheduled for 25 February 2025, and I strongly encourage all members to attend. This AGM will be a pivotal moment, as we not only review our achievements in 2024 but also elect new board members and solidify our vision for 2025.
I would also like to take this opportunity to express my sincere gratitude to the 2024 Board for their visionary leadership in steering the Association through a dynamic and eventful year.
Looking Ahead
Thank you for your continued support and dedication. Let us move forward together, driving South Africa’s wind energy sector towards a resilient and sustainable future.
Regards,
Niveshen Govender
