CEO Voice - January 2026
Dear SAWEA Members,
As we begin 2026, I would like to welcome our members and stakeholders back to what is set to be a defining year for South Africa’s electricity sector. The period ahead is characterised less by policy debate and more by execution. After years of reform design, the focus has decisively shifted to implementation, delivery, and system readiness. This transition will shape the operating environment for wind energy, particularly through three developments: the move into a year of electricity market reform and implementation, the achievement of the 4 GW installed wind capacity milestone, and the implications of Eskom’s revised unbundling framework for grid access and long-term investment.
The phased introduction of the South African Wholesale Electricity Market from April 2026 marks a critical step in the country’s electricity reform journey. With the Electricity Regulation Amendment Act of 2024 now in force, South Africa has, for the first time, a coherent legislative framework aligned with the original reform vision set out in the 1998 White Paper on Energy Policy, centred on competition, security of supply, private participation, and transparent market operation. The challenge is no longer policy intent, but implementation risk. Establishing new market systems while redefining institutional roles, particularly Eskom’s, will require disciplined execution, clear accountability and sustained coordination across government, regulators, and market participants. If implemented effectively, these reforms can provide transparent market rules, non-discriminatory grid access, and clearer pricing signals, creating a more investable environment for wind energy.
Against this reform backdrop, South Africa surpassed 4 GW of installed wind capacity in December 2025. By the end of October 2025, more than 63 wind projects totalling approximately 6 882 MW had been procured, with nearly 3 900 MW already operational, and further BW5 projects enabled the sector to cross the 4 GW threshold. This milestone confirms wind energy as a mature, reliable, and enduring component of the national electricity mix. While progress to date took longer than anticipated, the outlook ahead is materially different. The Integrated Resource Plan 2025 reinforces this trajectory, calling for a substantial expansion of wind capacity over the next decade and positioning wind as a central contributor to South Africa’s future electricity supply. With a strong development pipeline now in place, the priority is execution: resolving grid constraints, improving connection timelines, ensuring procurement certainty, and strengthening system readiness.
At the same time, the revised Eskom unbundling framework confirms that the National Transmission Company South Africa will remain a wholly owned subsidiary of Eskom Holdings and retain ownership of transmission assets, while a separate Transmission System Operator will manage system operations and the wholesale market. Although recent improvements in system performance are encouraging, they should not reduce the urgency of completing structural reform.
Beyond these core priorities, sector resilience will be shaped by effective risk management in response to increasingly severe weather events, improved land-use coordination to enable coexistence with agriculture and conservation, and a step change in skills development. Delivering the scale of wind deployment envisaged in the IRP 2025 will require standardised training pathways, expanded use of TVET institutions, and coordinated workforce planning across the value chain.
The foundations for growth are in place. Reform is legislated, the market transition is underway, and the wind sector has demonstrated its ability to deliver. The defining task for 2026 is implementation. If executed with clarity, urgency and coordination, wind energy can play a central role in delivering a secure, affordable, and low-carbon electricity system for South Africa.
Warm Regards,
Niveshen Govender
CEO
