Show Notes
This is the second part of a miniseries about South Africa's energy transition, based on Chris' travels there in September and October of 2025. The first part was Episode 264, in which we heard how the end of apartheid precipitated reform of the country's energy systems.
South Africa is arguably one of the most exciting places in the world to see the energy transition unfolding right now, because after nearly 150 years of relying almost exclusively on coal for its energy, it is finally implementing reforms that will allow its electricity system to integrate more renewables onto its grid.
Eskom, the state-owned monopoly, has owned and controlled the grid for over a century. Its aging coal fleet still provides around 80 percent of the country's electricity, even though solar power is now far cheaper, and it has been able to block new renewable projects because they threatened its coal business. But now Eskom is being broken up into separate units for generation, transmission, and distribution. And the country is launching its first wholesale electricity market — the South Africa Wholesale Electricity Market, or SAWEM — opening the door for renewables to compete with coal.
At the same time, there is also an enormous and growing informal supply in the form of distributed solar — enough to meet a quarter of the country's electricity demand. Many businesses and residents are installing their own solar and battery systems, often without any kind of permission from or notice to the utility. That is simultaneously creating an entirely new and complex sort of electricity system that's hard for utilities to manage, while also making the system far more resilient. In fact, distributed solar batteries are credited with putting an end to the "load shedding" blackouts that plagued customers for over 15 years.
Formally and informally, South Africa is rushing headlong from its coal-fired past and into the renewably powered future. Clean generation led by solar surged past 30 percent in late 2025, while coal fell to a record monthly low. South Africa's experiment in restructuring a vertically integrated, coal-dependent grid offers an early look at the politics, economics, and surprises that other markets will face as they take on their own transitions to renewables.
In this episode, we'll be hearing from experts who are closely involved with the electricity reforms in South Africa. In the next episode, we'll see how those reforms play an important role in delivering a just transition.
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