The strategic significance of the reference to energy reform in South African President Cyril Ramaphosa’s State of the Nation Address cannot be overstated.
Many media reports carried a sense of elation about how this clears the way for resolving the country’s long-term energy crisis. This sentiment is premature: there are many devils in the details that need to be attended to before the country can celebrate.
Ramaphosa announced that the soon-to-be established Transmission System Operator will own South Africa’s transmission assets. This would include all main powerlines and sub-stations. This was contrary to what had been expected, particularly by South Africa’s state-owned power utility Eskom. Its assumption was that it would retain ownership of the transmission assets via its subsidiary, the National Transmission Company of South Africa, that was established in 2024.
