The success of South Africa’s planned wholesale electricity market may depend less on early trading volumes and more on whether it can deliver credible data, transparency and institutional trust, industry stakeholders said during a recent energy sector webinar.
These views were shared during Creamer Media’s South Africa’s Energy Outlook 2026 webinar on January 28. Panellists discussed whether electricity market reform is shifting from policy intent to operational reality while highlighting potential challenges ahead of the anticipated launch of the South African Wholesale Electricity Market (SAWEM) in April.
“The wholesale market should be understood as a system enabler rather than a standalone trading platform,” said Olga Suchkova, Associate Director of Cresco. According to Suchkova, the availability of reliable market data and transparent price signals will be critical to building confidence across the value chain.
While the launch of SAWEM is an important milestone, its real value lies in the data it will generate, Suchkova noted. Credible information on prices, volumes and system behaviour is essential for investors, offtakers and advisers to make informed decisions and assess risk.
However, she warned that, without transparency and trust in governance, market participants may struggle to engage meaningfully, regardless of how well the market is designed on paper.
Echoing this view from a system-level perspective, Energy Council of South Africa CEO James McKay said institutional capability and credibility will ultimately determine whether SAWEM delivers on its objectives. He cautioned that market reform cannot succeed if supporting institutions are not adequately resourced or equipped to manage complexity.
“If institutions across the value chain are not capable, reform will not deliver the outcomes we expect,” McKay said. “Additionally, delays or weaknesses in implementation could undermine confidence and worsen future system risks.”
From Eskom’s perspective, Group Executive: Group Strategy and Sustainability Nontokozo Hadebe highlighted the importance of rule certainty and stability during the transition to a more liberalised market.
“Consistent and transparent frameworks are needed to maintain system security while enabling reform,” Hadebe said.
Corporate demand considerations were also raised during the discussion. Head of Discovery Green Andre Nepgen pointed out that market participants require clarity and predictability to commit to new procurement models. Uncertainty about access, pricing and rules can delay decisions even where participation exists.
Stakeholders concluded that, while SAWEM represents a significant step in South Africa’s electricity reform journey, its credibility will depend on trustworthy data, transparent processes and stable governance. Without these elements, the wholesale market risks falling short of its role as a foundation for long-term investment and energy security.
