SAWEM: Can South Africa Build a Competitive Power Market? EP. 294

In this episode of Energy Unplugged, two of Aurora’s energy market experts, Dan Monzani, Managing Director for UK, Ireland and South Africa, and Caroline Still, Market Lead - South Africa, examine one of the most ambitious electricity market reform programmes underway anywhere in the world.

Their conversation examines South Africa’s transition from a vertically integrated, state-led power system towards a competitive wholesale electricity market, and what the launch of the South African Wholesale Electricity Market (SAWEM) could mean for investors, developers and consumers.

Dan and Caroline discuss how spot markets can improve transparency, strengthen investment signals and accelerate private participation in the power sector. They also explore the challenges that remain, from market design and vesting contracts to transmission buildout, coal retirements and maintaining regulatory momentum throughout the reform process.

The discussion highlights how South Africa’s energy transition reflects many of the challenges seen globally, balancing market liberalisation, infrastructure investment and security of supply, while creating new opportunities for renewables, battery storage and innovative power procurement models.

You will learn:

• Why SAWEM represents a major milestone in South Africa’s electricity market reform journey

• How spot markets support price discovery, competition and investor confidence

• The key design questions around vesting contracts and market liquidity

• Long-term power price drivers, including demand growth, coal retirements, gas and transmission expansion

• The opportunities for batteries, aggregators and private capital in South Africa’s evolving power market