South Africa Energy Market Report – January 2018


The Department of Energy publicly stated that the November 2015 Expedited Round bids for wind and solar were 65 c/kWh i.e. significantly cheaper than new coal IPPs at around R 1.00/kWh. In addition to the successful passing of these tipping points; Minister of Public Enterprises approved Eskom’s application to purchase additional renewable energy from the producers involved in last bid windows of South Africa’s much-hailed renewable programme.

NERSA (South Africa’s National Energy Regulator) will host nationwide public hearings in May 2018, into power utility Eskom’s third multi-year determination (MYPD3) Regulatory Clearing Account (RCA) application for year 2 (2014/15), year 3 (2016) and year 4 (2016/17) totaling R 66.6 billion for public comment. Written comments can be submitted to the regulator on 23 March 2018.


In January 2018 the strengthening of the rand against the dollar has resulted in decreased fuel prices, as follows:

Unleaded 93 – R 0.29

Unleaded 95: – R 0.34

Illuminating paraffin: R 0.37

Diesel: R 0.26


South Africa is undoubtedly moving to form some sort of carbon pricing regime. The timing and format (carbon tax, carbon budget or combination thereof) is still unknown. The database will be based on the (GHG) data reporting to government and will form the basis for this carbon pricing regime. Companies impacted by the legislation need to make sure their data is accurate and complete as it will have financial implications. The regulations don’t explicitly state this but companies should expect to report their 2017 data by March 2018. The Department of Environmental Affairs is asking companies, through their industry associations, to provide historical data so that the National GHG Inventory is more complete.

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