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The energy transition spares no African power firm

It's not just renewables pioneers fighting hard. Incumbents are tumbling and reforming

February 26, 2026

Welcome to Green Rising – 

What it means to generate, transmit and distribute electricity in Africa is changing fundamentally. The important and oft-used metric of the number of people connected to the grid has only improved marginally in recent years. 

But on the business side, the arrival of renewables has spread change to every corner of the power sector. The public is increasingly familiar with the new champions – the mini-grid mavens, battery builders and private capital investors.

But the old stalwarts, the grandparents of the power business, the public utilities too are drawn into battle now. Over the past year, renewables have transformed the once stodgy world of parastatal power barons. Some for the better, some not.

South Africa’s power regulator, NERSA, has approved an average 8.8% tariff increase for once-monopolist Eskom over the next two years, further pitting consumers against the struggling utility. Four other African utilities have raised tariffs to protect revenue. While this has worked to some extent, the trend risks pushing costs beyond what consumers will bear.

  • Earlier this month, Eskom cut specific industrial tariffs by 36% to avert the closure of two major ferrochrome smelters. The relief is a temporary 12-month measure after the smelters threatened to shut down due to high power costs. 

  • Renewables can offer an alternative to volatile fossil-fuel markets and help achieve more stable pricing. But striking a balance is for utilities with their fossil-fuel-reliant grids, not least as governments cut subsidies to rein in spending.

  • Our take: Utilities must reduce reliance on fossil fuels and expand renewables to stabilise prices and limit fuel shocks… Read more (2 min)

It is now clear that Eskom will be unbundled into three independent entities, after South Africa’s President Cyril Ramaphosa stepped in to clarify reforms that had unsettled the sector. This paves the way for the establishment of a fully independent state-owned transmission entity, reversing earlier plans that would have kept Eskom in control.

  • The president’s intervention is expected to accelerate the uptake of private generation on the grid and remove conflicts of interest in generation, transmission and distribution.

  • Renewables will account for a major share of new investments, as the government invites greater private sector involvement to boost competition and favours lower consumer electricity prices.

  • Our take: Strong ambition exists, but predictable policy will drive real investment…Read more (2 min)

Kenya’s electricity utility Kenya Power generated nearly $1.5 million revenue from electric vehicle charging in 2025, more than doubling the $500,000 EV charging revenue in the previous year. The consumption data is from 205 EV charging companies. The actual revenue from EV charging is much higher as the utility does not track consumption from home charging.

  • Kenya Power saw a 5.1% decline in total revenue in 2025 as it took a hit from a lower tariff and forex recoveries. Revenue from electricity sales to EV companies helped the company maintain strong profitability. 

  • African utilities are facing pressure as plummeting solar costs push customers to own generation. Demand for EVs in Africa is skyrocketing, offering the utilities a new major power demand driver. 

  • Our take: EVs can future-proof utilities’ revenue but only if they move from passive beneficiaries to active load managers… Read more (2 min)

Number of the week

…  is the planned renewables capacity that KAHRE Renewable Energy aims to link directly to its South African green hydrogen facility via a proposed 450-km private “Greenlink” corridor. This bypasses Eskom. African grids are hitting capacity limits as hydrogen projects demand massive power. Current peak demand in South Africa is 35 Gigawatt (GW).

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👉 Namibian entrepreneur and economic diplomacy expert Ndahafa Hapulile wins the Patrice Lumumba Leadership Excellence and Integrity award.

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EVENTS UPDATE 

📆 Sign Up for the Africa Energy Indaba in South Africa (March 3)

📆 Join the Equip Auto Exhibition in Algeria (March 30)

📆 Attend the Africa Health Business Symposium in Kenya (April 21)

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