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Eskom notes the Supreme Court of Appeal judgment, continues its commitment to strategic gas programme

Africa Biz Watch by Africa Biz Watch
September 18, 2025
Loss before tax for the 2024 financial year improves by R9 billion to R25.5 billion; NTCSA separation triggers once-off accounting adjustment leading to loss after tax of R55 billion; profit forecast for the 2025 financial year due to improved performance.
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Thursday, 18 September 2025: Eskom notes the judgment of the Supreme Court of Appeal (SCA), which has set aside the Environmental Authorisation (EA) granted for the proposed 3 000MW Combined Cycle Gas Power Plant (CCGPP) and associated infrastructure in the uMhlathuze Local Municipality, KwaZulu-Natal. This gas plant forms part of Eskom’s strategic objective of facilitating a competitive future energy industry and contributes to the country’s energy transition.

The SCA ruled inter-alia that public participation process failed to meaningfully include isiZulu-speaking communities directly affected by the project. This failure, the court ruled, breached constitutional and statutory requirements for transparency, inclusivity, and fairness in environmental decision-making. As a result, the SCA nullified the Environmental Authorisation.

Eskom is still studying the judgment and considering its next steps.

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“The application was made because gas plays a critical role in South Africa’s energy future. It acts as a backbone for renewable energy integration due to its flexibility and fast-response capability. As more renewables come online, dispatchable generation is needed to offset their variability, ensuring energy security and sustaining the gains of the Generation Recovery Plan. At this stage, gas is the quickest and most cost-effective solution for backup and load-following,” said Eskom Group Executive for Strategy Delivery, Alfred Seema.

“With declining baseload coal, increased variable renewable energy, and more behind-the-meter solar that doesn’t generate at night, having gas available on demand is essential to maintain grid stability,” concluded Seema.

Eskom remains committed to strengthening South Africa’s energy future in a way that is inclusive, sustainable, and transparent.

While we consider the implications of this judgment, our focus remains to advance the gas strategy as the key enabler of energy security, economic growth, and the transition to cleaner energy.

ENDS


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