In his 2025 State of the Nation Address, President Cyril Ramaphosa laid out a comprehensive plan to tackle South Africa’s energy challenges.
The outline also included the plans for transition to a more sustainable and reliable system.
The president highlighted significant progress in addressing load shedding and outlined steps made to secure the country’s energy future, with a strong focus on renewables and private sector
ENERGY SYSTEM IS STILL UNDER PRESSURE
Ramaphosa reported that South Africa has seen more than 300 days without load shedding since March 2024. This is a result of the government’s Energy Action Plan, which has reduced the severity and frequency of power cuts.
However, the president acknowledged that the return of load shedding for two days last week was a reminder that the system is still under pressure. He spoke of the need to complete energy reforms to ensure long-term energy security.
ELECTRICITY REGULATION AMENDMENT ACT
The president announced that the Electricity Regulation Amendment Act, which came into effect on 1 January 2025, marks the beginning of a new era for South Africa’s energy sector.
This law, he explained, will pave the way for a competitive electricity market, allowing multiple electricity generation companies to compete.
Over time, this will encourage private sector investment in renewable energy and help connect more clean energy to the grid, he said.
PRIVATE SECTOR INVESTMENT IN ENERGY
Ramaphosa stressed the importance of private sector involvement in the sector. The government plans to mobilise private investment in the transmission network to support renewable energy projects.
He said that this will help South Africa transition to a greener economy while creating jobs and boosting economic growth.
RENEWABLE ENERGY AND GREEN MANUFACTURING
The president said that South Africa has great potential to become a leader in renewables and green manufacturing. “With abundant sun and wind resources, the country can produce cheap, green energy that will make its products competitive globally. This shift will also create hundreds of thousands of new jobs in the renewable energy sector,” he said.
R940 BILLION FOR INFRASTRUCTURE INVESTMENT
The government is investing heavily in energy infrastructure. Over the next three years, R940 billion will be spent on infrastructure projects, including R375 billion by state-owned companies. This funding will be used to upgrade and maintain existing infrastructure, build new power plants, and support renewable energy projects.
JUST ENERGY TRANSITION – A PACE WE CAN AFFORD
Ramaphosa said that South Africa’s Just Energy Transition is gaining momentum, with over R240 billion (13 billion USD) pledged by the international community. Significant private capital is also being invested locally, he confirmed.
The president reiterated South Africa’s commitment to reducing carbon emissions, but said that the transition will be done at a pace and scale that the country can afford.
ESTABLISHING A SOE REFORM UNIT
Ramaphosa acknowledged the need to reform state-owned enterprises (SOEs) like Eskom and Transnet to ensure they operate efficiently and provide world-class infrastructure.
He announced that a dedicated SOE Reform Unit will be established to oversee these reforms. The goal is to improve governance, attract private investment, and ensure that public revenue is focused on providing essential services.
DO YOU THINK SOUTH AFRICA IS FINALLY ON THE RIGHT TRACK TO TACKLE ITS ENERGY WOES?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
