Leading the Charge into South Africa’s Liberalised Energy Market
In April 2026, South Africa is set to take one of the most significant steps in its energy transition: the launch of the South African Wholesale Energy Market (SAWEM).
Far more than an administrative reform, SAWEM represents a fundamental transformation in the way electricity will be traded, delivered, and consumed. It is a milestone in shifting from a single-buyer, vertically integrated model to a liberalised market that enables transparency, competition, and innovation. The reform is intended to overcome dependence on Eskom’s vertically integrated model, stimulate new private investment into clean capacity, and provide clear price signals to the market. SAWEM reduces reliance on coal, accelerates renewables, and drives South Africa’s just energy transition — linking decarbonisation with new jobs and community upliftment.
The path to SAWEM’s launch is already mapped out. Throughout 2025, the focus will be on finalising the Market Code for submission to NERSA, securing the Market Operator licence, and rolling out the oversubscribed SAWEM School to build industry capacity. While timelines are tight, these steps provide the structure needed for participants like Anthem to prepare our systems, sharpen our forecasting, and align our portfolio for success in the new market.
With the preliminary steps in Eskom’s unbundling having already taken place and NTCSA positioned to step into the role of independent System and Market Operator. The NTCSA will be responsible for running the market transparently, ensuring compliance, and overseeing financial settlements. Market participants including generators, traders, retailers, and large consumers will transact directly with one another, with electricity prices determined by actual supply and demand in the system.
For the first time, Balance Responsible Parties (BRP) will carry financial responsibility for matching schedules with actual generation or consumption. Generators above 10 MW will be required to provide day-ahead and intraday forecasts, manage imbalances, and post credit cover to secure their participation. In practice, this means that if an IPP over- or under-delivers against its forecast, it must cover the costs of the resulting imbalance. The regime is designed to promote accountability, improve forecasting discipline, and ensure that the system as a whole remains reliable. For generators, this introduces both risk and opportunity: penalties for inaccuracy on the one hand, and potential rewards for precision, flexibility, and responsiveness on the other.
“Market Liberalisation isn’t just about new rules; it demands a new mindset — one that embraces complexity, overcoming uncertainty, and operational discipline – all traits on which Anthem prides itself”, said Yaseen Mahomed, Head of Business Development at Anthem.
Anthem brings deep experience to this transition, with over 1.6 GW of renewable projects delivered and managed. Our scale, diverse portfolio, and strong balance sheet position us to thrive in SAWEM. By aggregating performance across multiple technologies and geographies, we reduce imbalance risk and improve forecasting accuracy, while capturing additional value through participation in ancillary services and efficient market operations. Anthem’s strong balance sheet and integrated business model mean that BRP responsibility is not just a compliance requirement, but a source of competitive advantage.
The design of SAWEM promises direct market access for generators and large users, competitive and transparent pricing with real-time signals, greater liquidity to manage excess energy, and the chance to innovate with new products such as demand response, ancillary services, and financial derivatives.
Naturally, these opportunities are accompanied by challenges. Price volatility will test the resilience of participants, while regulatory and policy uncertainty during the transition may slow investment. Generators also face the risk of imbalance penalties if forecasts deviate significantly from actual output. In addition, the structure of vesting contracts — particularly the balance between fixed and variable elements — will have a major influence on the System Marginal Price in SAWEM’s early years.
“This is why we are fully supportive of SAWEM. Our commitment is not only to grow and optimise our renewable assets but to live our values by contributing meaningfully to the sector’s transformation and the upliftment of all South Africans through the generation of reliable, clean energy, a reduction in carbon emissions, and significant social and community investment. We see ourselves as stewards of South Africa’s energy future, accountable for delivering clean energy in a liberalised market that is just and equitable”, says Mike Wickins, Anthem’s Chief Commercial Officer.
As South Africa prepares for SAWEM’s launch, the path forward will demand collaboration across regulators, utilities, investors, and communities. Success depends on finalising market design, building institutional capacity, strengthening the grid, and aligning policies with investment.
At Anthem, preparation means more than compliance. It means investing in technology, forming strategic partnerships, and embedding community upliftment into our business model. It means leading with purpose in a market that rewards agility, discipline, and innovation.
The challenges will be real. But so too are the opportunities to accelerate renewable deployment, unlock private investment, and deliver a resilient power system for all South Africans. But, we will be ready to lead the charge.
Because at Anthem, we deliver Power with Purpose.