Reporter Observation: South Africa Invests Heavily to Restructure Energy, Seeking to End Era of Power Shortages

Reporter Observation: Investing Heavily to Reshape Energy Structure, South Africa Aims to Say Goodbye to “Power Shortage” Era

Wang Xiaomei and Wang Lei

Although South Africa is a major power producer in Africa, it has long faced a significant electricity gap. Over the past decade, South Africa has frequently fallen into “power shortages” for various reasons. Recently, escalating tensions in the Middle East have led to rising energy prices in the international market. President Ramaphosa pointed out at the Africa Energy Conference in Cape Town in early March that the international situation has sounded the alarm for African countries dependent on energy imports, making energy security an urgent priority.

South Africa is at the beginning of its energy transition. In October last year, the government announced an energy transformation plan costing nearly $130 billion, aiming to solve the long-standing “power shortage” problem through sufficient green energy supply.

【Origin of “Power Shortage”】

Before 1985, South Africa built many thermal power plants based on abundant coal supplies, with sufficient power and low prices. In 1994, South Africa legally ended apartheid, ushering in a wave of international aid and investment. Many companies established factories in South Africa, and electricity consumption increased year by year. However, over the next decade, the government did not build large-scale power facilities. Meanwhile, existing power equipment aged, and the inefficient management of Eskom, which supplies over 90% of the country’s electricity, coupled with slow new plant construction, gradually turned “power shortage” into a structural barrier to economic and social development.

To ease the supply pressure, South Africa began implementing rolling blackouts in 2007. After the COVID-19 pandemic, the power shortage worsened, and large-scale load shedding became the norm.

2023 was the most severe year of “power shortage” in recent South African history, with over 300 days of blackouts and prolonged Stage 5 and Stage 6 load shedding. Under Stage 6, power outages could last 8 to 12 hours daily. To cope, many households had to find alternative solutions, such as replacing electric stoves with gas stoves or installing rooftop solar panels. Small batteries and rechargeable lamps became bestsellers.

The power crisis not only disrupted daily life but also severely impacted the economy. Statistics show that in 2023, power shortages caused at least a 1.5 percentage point loss in South Africa’s GDP. President Ramaphosa declared a “disaster” state of power shortage during his national address that year.

In recent years, the government has been trying various measures to address the “power shortage.” In 2022, it launched the “Energy Action Plan” to accelerate renewable energy projects and increase their share in the energy mix. In 2023, Eskom initiated the “Generation Recovery Plan” to improve power supply stability by enhancing plant efficiency.

With these efforts and the rapid growth of private power generation, South Africa’s power supply situation has improved. In 2024, total blackout days dropped to 83; in the first eight months of 2025, only 12 days of blackouts occurred. Eskom announced in January 2026 that an additional 4,400 MW of capacity had been added, and the country had gone about eight months without outages, marking the most stable and reliable power system in five years.

【Energy Transition】

In October 2025, the South African government announced a comprehensive resource plan with a total investment of $128 billion, the largest single investment since the end of apartheid. South African media regard it as a “blueprint for energy transition over the coming decades.”

According to the plan, by 2039, South Africa will add over 105 GW of new generation capacity, including 25 GW of solar PV and 34 GW of wind power; coal power’s share will decrease from 58% to 27%, while renewable energy, nuclear, and natural gas will account for 73% of total generation. Wind power will increase from 8% to 24%, solar PV from 10% to 18%, and nuclear from about 2% to 5%. Additionally, South Africa will for the first time develop natural gas power, reaching 11%.

Energy and Minerals Minister Ramuhopa revealed that 14 top global financial institutions have committed to supporting nuclear and renewable projects. He also stated that the plan not only ensures stable electricity but also makes energy more affordable and accessible for all South Africans.

This new plan signifies a shift from a coal-dominated energy system to a diversified, clean, and low-carbon one. Ramuhopa emphasized that South Africa aims for an “energy security and emission reduction” balanced approach, rather than simply abandoning coal for green energy.

Meanwhile, South Africa continues to push forward with structural reforms in the electricity market. The amendments to electricity regulation, effective January 2025, broke Eskom’s long-standing monopoly, allowing private power producers to participate directly in market transactions for the first time. The reforms also grant the Ministry of Electricity and Energy greater autonomy in planning and development, and promote electricity price reforms.

【Cooperation with China】

China is South Africa’s largest trading partner, and South Africa is China’s biggest trading partner in Africa. Over the years, cooperation across various fields has strengthened, with renewable energy cooperation emerging as a new growth point and highlight.

South Africa is rich in wind and solar resources. Coastal areas in Western Cape and Eastern Cape have excellent wind conditions, and most regions enjoy over 2,500 hours of sunshine annually, making them ideal for wind and solar PV development. Additionally, South Africa has the only operational nuclear power plant in Africa, the Koeberg Nuclear Power Station, and is advancing the construction of other nuclear plants, as well as planning to restart modular nuclear reactor projects that have been stalled for over a decade.

China has extensive experience in developing innovative renewable energy technologies. Ramaphosa called on Chinese companies to participate more actively in South Africa’s green economy and play a positive role. Both sides working together can create sustainable, environmentally friendly energy solutions that benefit their peoples.

Currently, Chinese companies have implemented more than ten green energy projects in South Africa, involving solar, wind, and energy storage. As a flagship project of China-Africa cooperation under the Belt and Road Initiative, the De Aar Wind Power Project is the first wind farm in Africa to integrate investment, construction, and operation. Since its commissioning in October 2017, it has supplied about 770 million kWh of clean electricity annually, directly benefiting 300,000 South African households.

The Chinese-built Redstone 100 MW tower-type molten salt thermal power plant is one of South Africa’s largest renewable energy investments. Once fully operational, it will contribute approximately 480 GWh of clean electricity to the national grid annually.

A report by the Overseas Development Institute highlights that transmission and grid development are crucial for South Africa’s energy security and transition. Chinese companies have advantages in grid infrastructure and transmission technology and can play an important role in this field as well.

Industry insiders believe that South Africa’s accelerated energy transition presents unprecedented opportunities. Cooperation between China and South Africa in solar, wind, nuclear, energy storage, and smart grids is expected to deepen further. With technological advantages, Chinese enterprises can inject “Chinese power” into South Africa’s energy transition and low-carbon development, while also enhancing their competitiveness in international cooperation. (End) (Xinhua News Agency exclusive report)

Note: The author of this article is a reporter stationed in Cape Town for Xinhua News Agency.