The South African energy grid has around 60,000 MW of capacity, but with
Eskom’s aging fleet of
coal power stations, the country faces constant
rolling blackouts as they are unable to meet the energy demand.
The National Grid Coal Power Station make up 78% of the electricity grid, so the
carbon intensity of
electricity generation is higher than most other countries at over 800 gCO2/kWh.
Open Cycle Gas Turbine Power Plants powered by diesel make up 5.9% of the energy grid and are use as
peaking power plants. With the shortfall of energy production, although expensive, these power stations are used more often to reduce the
rolling blackouts. The remaining grid is made up of
Wind (5.7%),
Hydro (3.9%),
Solar (3.6%),
Nuclear (3.2%) and to a smaller degree,
Biomass and
Landfill Gas.
History Prior to the establishment of Eskom the provision of electricity was dominated by municipalities and private companies. The city of
Kimberley was the first user of public electricity in South Africa when it installed electric streetlights run off a coal fired power plant in 1882 to
reduce crime at night. The first central power station and distribution system in South Africa consisting of a 150 kW generator with two boilers and located at
Cape Town Harbour was completed in 1891 to supply power to government buildings in the nearby city. In 1893 the town (now neighborhood) of
Wynberg, in
Cape Town, opened a power station to provide power to a local tram system and public street lights. Not all early power stations were successful, such as the short lived
President Street Power Station in
Johannesburg. Constructed in 1906, the use of unsuitable fuel in an experimental engine design lead to an explosion in 1907. Between 1908 and 1912, four power stations were erected around Johannesburg to deliver electricity for the nearby mining industry. The power plants were connected to an electrical substation 8km outside of Rosherville by the first transmission lines in South Africa, with a voltage of 80 kV, 40 kV, and 20 kV. Eskom was founded by the
Electricity Act of 1922 which allowed for the establishment of a government owned non-profit company to provide electricity. In 1948 Eskom bought out the
Victoria Falls and Transvaal Power Company with government support for £14.5 million (roughly equivalent to £2.55 billion in 2017) to become South Africa's primary electricity provider. Eskom dropped its non-profit mandate in the late 1970s and government control over the company was expanded in 1998 with the passing of the Eskom Amendment Act.
Renewables and energy producer diversification Context Following the South African government's announcing of the
Integrated Resource Plan in 2010 and
Renewable Energy Independent Power Producer Procurement Programme in 2011, numerous local companies have started trading platforms for
wheeled renewable energy, including
EXSA and
Ampli Energy, with the aim of more stable pricing and supply, and increased market competition, within the country's energy sector. As of 2025, South Africa has a total of 23 independent power producer–owned
solar power facilities, each contributing more than 75MW of dispatchable power to the grid, with the largest providing 150MW. The country’s independent power producer (IPP) procurement programme aims to add 39GW of capacity to South Africa’s energy mix by 2030. Plants already in operation have contributed significantly to preventing
load-shedding. The
Kenhardt hybrid solar and battery energy storage facility, with 540MW capacity, is the country’s largest, followed by
Xina Solar One,
Karoshoek Solar One,
Kathu Solar Park,
Kaxu Solar One, and
Redstone Solar Thermal Power Plant. All of these plants are located in the
Northern Cape province. The same researchers made numerous recommendations in terms of how best to use this potential energy resource. Firstly, they recommended that government regulations should be put in place to mandate the installation of solar power on all suitable new commercial rooftops. Secondly, they recommended that an assessment should be done of existing rooftops' potential to have solar installed. In June 2025, a
World Bank-linked climate fund backed South African plans to cut the country's reliance on coal, unlocking up to
R47 billion ($2.6 billion) in financing. The approval of an updated plan by the Climate Investment Funds will see the CIF disburse $500 million to the country. That, in turn, clears the path for as much as $2.1 billion in funding from multilateral lenders, including the World Bank and the
African Development Bank. The funding is set to play an important role in South Africa’s energy transition. In the same month, it was reported that
German-based JUWI Renewable Energies was building large-scale solar projects for major companies in South Africa. The company signed two solar module supply agreements with JA Solar, and includes around 420,000 solar panels for two large-scale projects, with an energy output totaling 220 MW. These will be used for companies including Glencore, Sasol, and Air Liquide. The plants form part of JUWI's broader R6 billion rollout of new solar PV projects in South Africa. In late June 2025, in his keynote address at the Africa Green Hydrogen Summit, South African President Cyril Ramaphosa reaffirmed his commitment to expanding the country's green
hydrogen production. As of mid-2025, South Africa has invested more than
R1.5 billion into its Hydrogen South Africa program. Also in June 2025, it was announced that South African solar service provider Wetility had signed a R500 million deal with investment fund manager Jaltech, to fund the expansion of solar and battery systems across South Africa. The agreement will support the rollout of over 16 megawatts of distributed solar power, and avoid more than 25,000 metric tons of carbon emissions. The companies had worked together before, however this deal represents a significant expansion of their partnership. In July 2025, it was reported that Eskom planned to decommission 23 gigawatts of electricity generated from five coal power stations by 2040. These stations would be replaced with alternatives such as hydro, gas, and nuclear power generation. The Just Energy Transition (JET) plans were announced before the South African Government's Portfolio Committee on Electricity and Energy. As part of its JET, by 2040, Eskom plans to increase its hydro output from 3GW to 5GW, its other renewable energy type output from 3GW to 32GW, its gas output to 12GW, and its nuclear output to 10GW. Despite taking coal stations offline over this period, the power utility stated that its total electricity output would increase from 47GW in 2025 to 77GW in 2040. In October 2025, the
European Union pledged to invest €11.5 billion (~ R231 billion) into South African clean energy, infrastructure, and pharmaceutical projects. A large portion of the investment aims to accelerate South Africa's shift to
renewable energy, via new power generation capacity, grid upgrades, energy storage, and green hydrogen.
Nuclear power developments South Africa was once at the forefront of small modular nuclear reactor (SMR) development, with national electricity provider, Eskom, spending eleven years and R9 billion developing
pebble-bed modular reactor technology (PBMR). However, no demonstration plant emerged from the process, and it was halted in 2010. In recent years, there has been renewed interest from numerous private power producers to roll out SMRs across South Africa. The Integrated Resource Plan (IRP) is an updated version of the one the Government worked on in 2023. The new IRP is a blueprint for how SA will source its energy over the next decade, and has been passed by Parliament. A major amendment in the new version is a commitment to net zero by 2050, which means no new energy sourced will be from fossil fuels. Coal power generation is therefore set to decrease from 58% in 2025 to just 27% in 2039. Meanwhile, wind and solar power will increase from 8% and 10% in 2025, to 24% and 18% in 2039, respectively. South Africa will also be renewing its Pebble Bed Modular Reactor (PMBR) project, which was shelved in 2010. Cabinet will be asked to reopen the PMBR facility at
Pelindaba, the country's main nuclear research center, in
Gauteng. Some of the PMBR technology used was developed in SA, and all PMBR technology will be transferred from Eskom to the
South African Nuclear Energy Corporation (NECSA). Two areas marked for new nuclear power development are
Duynefontein in the
Western Cape (near SA's only existing nuclear plant), and
Thyspunt, in the
Eastern Cape. Combined, these new IRP projects represent a significant shift for South Africa, which in 2025 was ranked as the world's 15th largest greenhouse gas emitter. IRP 2025 is set to introduce over 105,000
MW of new generation capacity by 2039, with investments totaling
R2.2 trillion. In February 2026, it was announced that South African
renewable energy company
SOLA Group had achieved financial close and commenced construction on its
Naos-1 Hybrid Solar and Battery Project near
Viljoenskroon in the
Free State. The facility will comprise 435MWp of
solar PV generation and a 855MWh
battery energy storage system (BESS), with a peak output of 300MW. This will make it the largest private
power plant by output in South Africa, as well as the largest capacity renewable energy plant in South Africa.
Sasol and
Air Liquide are set to be the plant's primary customers, and the facility is scheduled to be fully operational by the end of Q2 2028. ==Eskom==