The South African National Energy Development Institute (SANEDI) is targeting 4 TWh in energy savings in the 2026/27 financial year alongside a reduction of 6 Mt in greenhouse gas emissions, positioning energy efficiency as a key lever in easing pressure on South Africa’s constrained power system.
The targets build on a strong performance baseline in 2025/26 when SANEDI’s programmes contributed to 4,33 Mt of emissions reductions and approximately 4,49 TWh of energy savings. More than 2 000 buildings were registered for energy performance certificates.
Presenting its annual performance plan to Parliament’s Portfolio Committee on Electricity and Energy, SANEDI Board Chair Sicelo Xulu outlined a delivery programme spanning energy efficiency, policy-relevant research and innovation and strengthened governance controls while reinforcing SANEDI’s role in supporting national energy priorities.
While these results demonstrate measurable system impact, SANEDI’s capacity to sustain and expand delivery is increasingly constrained by its financial position.
For the 2026/27 financial year, SANEDI’s budget stands at R155,3 million within a medium-term expenditure framework totalling around R258 million. Just over half of this funding is provided from the fiscus (54% or R83,9 million in 2026/27) with the remainder supplemented by externally funded projects (43%), management fees (1%) and interest income (2%).
Acting CFO of SANEDI Nhlanhla Mzila said the impact of the 5% medium‑term expenditure framework budget reduction in 2023/24 remains, noting that SANEDI’s allocation has been reduced by a further 1,3% (R3.4 million) over the 2026/27 to 2028/29 period, including R436 000 in 2026/27. He said the institute has absorbed these reductions through cost-containment measures, largely concentrated in non-core administrative expenditure, but warned that SANEDI’s significant reliance on external funding is not sustainable.
These constraints come amid a leadership transition. SANEDI appointed a new Board in November 2025, which completed its induction in early 2026 and activated its subcommittee structure to strengthen oversight across audit, technical and human resource functions. In December 2025, the CEO resigned and formally exited at the end of March 2026, prompting a stabilisation process led by the new Board. In April 2026, Prathaban Moodley was appointed Acting CEO with the recruitment process for a permanent Chief Executive underway.
Despite the leadership disruption, SANEDI has maintained clean audit outcomes over the past three financial years, reflecting a stable governance environment and disciplined financial management.
Xulu told Parliament that the institution navigated this period with strong focus on continuity and accountability.
“This presentation is delivered with a profound sense of Board stewardship and accountability as we guide SANEDI through this critical period of transition,” he said.
With clear performance targets, an established delivery record and a stable governance framework, SANEDI’s trajectory will depend on its ability to secure the resources required to expand its impact in a power system that continues to demand efficiency and innovation at pace.
