SA is set to have a new R2.23-trillion power plan after the cabinet approved the new Integrated Resource Plan (IRP) on Wednesday, which will determine the country’s future electricity mix and investment priorities.
The IRP outlines an investment framework aimed at balancing supply and demand, curbing carbon output and lowering the cost of electricity. It builds on the IRP 2023, incorporating updated projections for demand growth, generation capacity and the integration of renewables into the national grid.
“The plan aims to reduce the environmental footprint of electricity by limiting both global and local emissions. It focuses on addressing immediate capacity constraints and planning for long-term goals, such as achieving a Net Zero electricity sector by 2050. The IRP 2025 is an improvement to the IRP 2023 that was approved by the cabinet,” minister in the presidency Khumbudzo Ntshavheni said in a post-cabinet media briefing on Thursday.
“The cabinet approved the final draft IRP 2025, which is a long-term plan designed to map out the country’s electricity mix, aiming to balance supply and demand while considering environmental impact and the cost of electricity. The final policy presented to cabinet represents a R2.23-trillion investment that will define SA’s energy mix for the future.”
The IRP 2025 seeks to accelerate the diversification of the energy mix by expanding renewables, gas and nuclear capacity, while managing the gradual decommissioning of coal plants. It also aligns with SA’s commitment to reach net-zero emissions in the electricity sector by 2050.
Tsakane Khambane, the spokesperson for electricity and energy department, said the approved IRP 2025 would be gazetted in the coming days.
New Eskom board members
The plan comes as Eskom shows signs of financial and operational recovery after years of crisis. The state utility, which once symbolised SA’s power woes, reported a profit for the 2024/25 financial year. The company posted a pre-tax profit of R24bn helped by lower spending on diesel and better performance at its coal-fired power stations, which cut its diesel costs by about R16bn.
The cabinet’s meeting on Wednesday also approved new board members. The board will be chaired by Mteto Nyati, who was appointed in September 2022 by late public enterprises minister Pravin Gordhan. Nyathi’s term ends in 2026.
The new board retains Busisiwe Vilakazi, a senior researcher in the field of medical device development at the Council for Scientific and Industrial Research, and Clive le Roux, who is also the entity’s chief nuclear officer. Electrical engineer Tsakani Mthombeni has also been retained as part of the board.
Former vice-president of the African Development Bank Bajabulile Tshabalala, law professor Vuyo Peach, managing executive at Vodacom Andrew Barendse and engineer Dimakatso Matshoga also sit on the new board.
Environmental scientist Kgaugelo Chiloane, global human resources executive Sharmila Govind and former CEO at the Industrial Development Corporation Tshokolo Nchocho, have also been appointed.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.