Progress in fixing South Africa’s electricity sector surpassed expectations over the past year yet these achievements come with the challenges of higher system costs and prolonged higher emissions.

These were the opening remarks by James Mackay, CEO of the Energy Council of South Africa (ECSA), during an online information session yesterday (August 29), discussing business involvement in the National Energy Crisis Committee (NECOM) under the Business for South Africa (B4SA) partnership with government.

The session followed the first meeting, two weeks earlier, between B4SA CEOs, President Cyril Ramaphosa and relevant government ministers when they reviewed progress and discussed updates.

“Although we are optimistic that we are nearing the end of load shedding due to the increased availability of megawatt capacity in the system and promising operational reliability statistics from Eskom, this is not the time to pause and celebrate,” Mackay emphasised. “We must now confront the complexities and challenges of accelerating South Africa’s energy transition.”

NECOM 2.0 shifts focus

The Energy Action Plan, launched in 2023, was centred on a strategy to tackle the immediate crisis of load shedding and stabilise electricity supply. NECOM 2.0 will shift its focus to building new generation capacity and reforming the energy sector. “This does not imply that energy security issues have been entirely resolved but there is growing confidence that we must swiftly pivot towards building and reforming,” Mackay said.

ECSA will continue coordinating efforts as mandated under the B4SA structure and partnership, he added.

Collaboration is crucial

Mackay commended Ramaphosa’s commitment to addressing climate change in an ambitious, just and inclusive manner. He noted that numerous setbacks faced by the country – such as state capture, the COVID-19 pandemic and load shedding – have catalysed a more urgent and collaborative response to the energy transition.

“This is crucial because international realities significantly heighten the urgency of implementation as we advance these major structural reforms and rapidly scale up investments.”

He welcomed establishment of the Ministry of Electricity and Energy, noting it had already strengthened political leadership and clarified responsibilities with greater transparency and collaboration becoming the norm rather than the exception.

Call to action

Mackay also pointed to the call for decisive action issued by Ramaphosa and the B4SA CEOs with the revised NECOM 2.0 serving as the agreed partnership platform to mobilise capacity and concentrate on delivery. “Our national ambitions and objectives are becoming increasingly clear and well-structured. The enactment of the Electricity Regulation Amendment Bill marks a significant step forward in ensuring policy clarity. What is now essential is a major mobilisation and focus on delivery capacity. This is the challenge we face and it is where the mobilisation of business participation and capacity will be crucial.”

He acknowledged that navigating the energy transition will be complex and demanding. “We still face significant economic, fiscal and social deficits along with capacity challenges in key state institutions.”