CEO Voice - November - December 2025
Dear SAWEA Members,
What a year! 2025 has seen commitments converting into action, and the foundations of a renewable-powered future are being firmly established. From grid reform to market restructuring and community impact, the direction is clear and encouraging. The wind sector closes 2025 with not just promise, but measurable progress.
Grid Access and Governance
2025 has been a defining “year of the grid.” The implementation of the Electricity Regulation Amendment Act (ERAA) on 1 January 2025 marked a structural shift in how South Africa governs, allocates, and expands its transmission capacity. By enabling competitive electricity trading and ending the year with formally assigning the duties of the Transmission System Operator to the National Transmission Company South Africa (NTCSA), the ERAA has created a clearer and more accountable grid governance framework.
This reform has empowered the National Energy Regulator of South Africa (NERSA) to make decisive, sector-shaping determinations - most recently the finalisation of the Grid Capacity Allocation Rules (GCAR). Starting these conversations more than four years ago, SAWEA has led the advocacy to ensure a rules-based system inspiring transparency and fairness. Effectively, GCAR empowers Eskom to formalises readiness-based grid allocation and queue management for scarce grid capacity.
While major steps have been taken, much needs to be done in the new year to structurally reform grid access and its governance in line with the electricity market transformation.
An Enabling and Competitive Electricity Market
Parallel to grid reform, the Wholesale Electricity Market continues its transformation. With the foundations for grid expansion and modernisation in place, we are seeing tangible regulatory progress: NERSA’s approval of the Market Operator Licence for NTCSA, the establishment of the Electricity Market Advisory Forum (EMAF), and public consultation on draft Electricity Trading Rules. Collectively, these developments unlock the formal entry of licensed traders into the electricity market, signalling the shift toward a more dynamic and competitive environment.
To support this transition, SAWEA launched the first edition of the member-SAWEM School this month, ensuring our members and partners are well-prepared for the evolving market landscape. With all 2025 and 2026 sessions already fully subscribed, SAWEA would have capacitated more than 250 wind energy professionals to be better equipped for the future.
Wind Energy Market Outlook
We end the year with a fully loaded IRP2025 expecting 100GW of new generation capacity by 2042, of which 34% expected from wind energy. This will make wind energy the leading technology of the South African energy mix in 2042.
The 2025 South African Grid Survey (SAREGS) has identified a pipeline of 220 GW of renewable energy projects, including 60 GW of wind projects already in development. Of these, 17 GW are advanced or shovel-ready, with most expected to reach operation within the next five years.
Looking Ahead to 2026
We conclude 2025 on a positive and confident note. The market reform instruments introduced in the last quarter brings greater clarity for developers, investors, and electricity traders. As we move into 2026, we anticipate increased predictability on grid access, defined pathways to market for shovel-ready projects, and a progressively more competitive environment for procuring and selling electricity in South Africa. Wind energy will continue to assert its role as a cornerstone technology in the country’s energy transition, contributing not only electrons but resilience, economic value, and community development.
Holiday Season Greeting
I would like to take this opportunity to wish all our members, stakeholders, and industry partners a safe, restorative, and prosperous festive season.
Thank you for your continued dedication, collaboration, and confidence in the wind sector’s role in shaping a more resilient, inclusive, and sustainable future. We look forward to continuing this journey with you in 2026.
Warm Regards,
Niveshen Govender
