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Wind sector prepares for market reform

The above image depicts a wind farm

WIND-ING UP Constrained grid capacity limits wind energy generation ramp-up, SAWEA highlights

Photo by SAWEA

26th September 2025

     

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A stable, affordable and sustainable electricity supply remains South Africa’s most urgent priority. This urgency is sharply felt by the wind industry where there is a need to unlock grid capacity, which is the single biggest bottleneck preventing the rapid scale-up of new projects, said industry organisation South African Wind Energy Association (SAWEA) CEO Niveshen Govender.

Providing an overview of the state of the industry in the lead up to Windaba 2025, Govender explained that State-owned power utility Eskom’s commitment to deploy 2 GW of construction-ready projects by 2026, scaling up to 32 GW by 2040, signals its recognition of the urgent need to expand generation capacity while building for the long term through the launch of the first Renewable Energy Offtake Programme.

“This represents more than a procurement mechanism; it reflects the beginning of a competitive, diversified electricity market that can attract greater investment and unlock efficiencies across the value chain,” he noted.

Further, he cited the Independent Power Producer Office’s hosting a virtual session shortly after the launch of the first Independent Transmission Projects bid window in July, adding that “it is clear that the roll-out of grid infrastructure and the reform of the public procurement framework is a priority [that presents] the wind industry with a chance to demonstrate readiness, while at the same time requiring us to advocate for a procurement framework that is robust, inclusive, sustainable and fit for purpose”.

To this end, SAWEA has circulated a Renewable Energy Independent Power Producer Procurement Programme reform survey to inform the industry’s position on public procurement reform and ensure that the framework reflects national energy priorities as well as the realities and growth ambitions of the wind sector.

Moreover, regulatory authority the National Energy Regulator of South Africa’s (Nersa’s) establishment of the Electricity Market Advisory Forum, the acceleration of Electricity Trading Rules and the revision of State-owned transmission company the National Transmission Company South Africa’s (NTCSA’s) Market Codes are “critical developments” towards a transparent, competitive, and rules-based electricity market.

Govender elaborated that these developments, coupled with Electricity and Energy Minister Kgosientsho Ramokgopa’s assertion that the reform agenda is “irreversible”, send a powerful signal of stability to investors and stakeholders.

Additionally, South Africa aims to liberalise its electricity market by implementing the South African Wholesale Electricity Market (SAWEM), which is designed to introduce competition and efficiency to the sector.

However, SAWEM’s success is dependent on unlocking grid access and ensuring the complete operational independence of the NTCSA, which aligns with SAWEA’s Windaba 2025 theme: The Year of the Grid – “Break the Gridlock! Wire for Growth!”

“The path forward will not be without challenges. Sustainable transmission infrastructure and the successful liberalisation of the electricity market will be decisive in determining the success of South Africa’s reform journey,” Govender warned.

As such, SAWEA will continue to engage proactively with government departments and agencies – such as Nersa and the NTCSA, among others – ensuring that wind energy has a strong and credible voice in shaping the policy and regulatory environment.

These and other issues will be addressed at Windaba, which is taking place on October 21 to 23, at the Cape Town International Convention Centre.

Women-led Conference

In preparation for Windaba – which is being hosted in partnership with industry organisation, the Global Wind Energy Council – SAWEA has stated that this year’s event will be the “first women-led energy conference” in South Africa, with every panel moderated by female experts from across the industry.

“This deliberate step demonstrates a commitment to embedding gender diversity into the DNA of the sector, creating visible leadership pathways, and signalling that the transformation of South Africa’s energy landscape must be both technological and social,” Govender highlighted.

The platform will not only bring together government, investors, developers and communities, but will also provide an opportunity to engage on regulatory reforms, investment opportunities, and skills development priorities, ensuring that the wind sector continues to contribute meaningfully to the energy transition.

Developing Local Capacity

Meanwhile, SAWEA has lauded an initiative by turbine manufacturer Nordex Energy South Africa (NESA), which has committed to strengthening South Africa’s renewable-energy workforce. The company sent a group of seven wind turbine service technicians on a month-long intensive international training programme at the Nordex Academy in Türkiye

.

NESA is advancing local service capacity, supporting long-term talent retention, and contributing to national goals for renewable-energy sector skills development by equipping its teams with the skills to service the latest Delta  4 000 platform.

“This international training is strategically important to both our project delivery and localisation goals,” NESA service head Babalwa Kekana stated.

Additionally, the training will equip NESA’s teams with “essential knowledge”, enhance operational readiness for NESA’s upcoming 631 MW pipeline, and promote peer-to-peer knowledge sharing.

The seven technicians will now act as multipliers in the company’s local teams, rolling out what they have learned through structured mentorship and knowledge-sharing sessions.

This approach will ensure that the broader NESA workforce benefits from global best practice, while accelerating the company’s contribution to inclusive economic growth through local capacity building.

Edited by Nadine James
Features Deputy Editor

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