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Licensed electricity trader Discovery Green has launched a proprietary renewable-energy operating system that combines AI with the larger group's actuarial expertise to offer its business clients a tailored way of deploying renewables to further reduce their emissions and lower electricity costs.

Discovery Green CEO Andre Nepgen says EnergyOS has been designed to address what he describes as the "renewables trilemma" faced by businesses of maximising savings, reducing emissions and managing financial risk.

The company has sought to address these trade-offs by reframing renewables procurement as a risk rather than as a commodity, which has allowed it to apply actuarial techniques to renewables as an asset class.

Head of Actuarial and R&D Dan Ginsberg argues that the renewables market presents many of the same challenges found in markets such as insurance and financial services, where Discovery has been active for 30 years.

"Generation fluctuates, demand is unpredictable and future market conditions remain uncertain.

"EnergyOS brings actuarial thinking to these challenges so that renewable energy can be managed with greater sophistication," Ginsberg explains.

The homegrown solution has been built using a rich vein of data, including over 10 000 consumption simulations, 87-million generation simulations, and over 200 000 future market-price points.

This information has been employed using AI to create a dynamic forecasting model, which is in turn fed into a model that is able to customise the solution to a specific client's needs by selecting the best combination of solar, wind and storage.

A further model allocates the energy to ensure that the client's environmental and commercial objectives are met, without increasing financial and operational risks.

Nepgen reports that internal stress-testing has demonstrated that the solution is able to tailor-make solutions for a diverse range of clients, from farmers to miners, that yielded significant costs savings and emission reductions.

EnergyOS, he reports, will be rolled out to all existing business clients during the course of 2026 and is immediately available to new business clients.

In addition a public-interactive tool based on EnergyOS has been released, enabling clients or prospective clients to test various technology and pricing scenarios.

Nepgen says the tool has also started to change Discovery Green's own internal thinking with regards to procurement, as it is able to offer visibility of the true value of the various assets it has in its portfolio, as well as those being considered for investment.

Discovery Green, which was launched three years ago, is one of South Africa's largest energy traders with over 740 MW under construction, and with more than 50 business customers.

An updated version of the network statement that will govern access to the South Africa's railways system for the two financial years of 2026/27 and 2027/28 has been Gazetted by the Department of Transport and published by the Transnet Rail Infrastructure Manager (TRIM).

Known as Network Statement Version 4, TRIM says the document has been released following a public-comment period launched in July, as well as engagements with train operating companies (TOCs), freight owners, customers, regulators, financiers, industry associations and government stakeholders.

Published in Gazette No. 55426, the new document is also said to be in line with South Africa's National Rail Policy and the Economic Regulation of Transport Act, as well as reforms aimed at facilitating a competitive rail sector, hitherto monopolised by Transnet Freight Rail (TFR).

To date, 11 private TOCs have secured rail access agreements alongside TFR for slots released under a previous version of the network statement.

In a media release confirming the publication of Version 4, TRIM said the updated document built on earlier editions but introduced a range of enhancements designed to provide greater clarity, transparency and flexibility for existing and prospective rail users.

"Enhancements include clearer recognition of access seekers, expanded provisions for ad hoc applications, improved visibility of available capacity, strengthened governance principles and greater clarity regarding supporting and ancillary services required for rail operations."

TRIM said the changes aimed to broaden opportunities for participation, provide greater operational flexibility and support increased use of the rail network.

They also provided "increased regulatory certainty and confidence for current and future rail market participants".

In an interview with Engineering News ahead of the release of the document, TRIM CEO Moshe Motlohi confirmed that the contract period had been extended from 10 to 15 years; a change that would also be extended to the initial TOCs.

Motlohi also said the formal introduction of an 'ad hoc methodology' would allow for the release of rail slots for shorter periods when network capacity became available because of unforeseen circumstances.

These ad hoc allocations would be available to the existing 12 operators, as well as new entrants.

The new network statement outlines both the train paths that have been determined by TRIM, as well as the application process for TOCs seeking a capacity allocation. However, it also highlights constraints on the network, as well as security vulnerabilities.

The opening of the network is also seen as being constrained by access to rolling stock, such as locomotives and wagons.

Meanwhile, TRIM anticipated the first private TOCs could begin pilot operations before the end of 2026, with the others expected to enter the mainline network from 2027 onwards.

The introduction of private TOCs to South Africa's mainline rail network forms part of reforms aimed at increasing rail volumes to 250-million tons by 2030.

In 2025/26, TFR increased its volumes by 4.9% to 167.9-million tons, short of its 180-million-ton target.

Nearly 100 people participated in a compulsory briefing session on Friday for those wishing to bid to become the transaction adviser to the National Treasury in relation to the establishment of a fully independent State-owned Transmission System Operator (TSO), which would own the transmission assets currently falling under an Eskom subsidiary.

A request for proposals (RFP) in relation to the appointment has been issued by the Infrastructure Finance and Implementation Support Agency (IFISA), which is housed at the Development Bank of Southern Africa, and a bid submission deadline of 23:55 on September 30 has been set.

The adviser will be expected to provide integrated financial, legal and tax advisory services to structure and execute the transaction, whereby Eskom's transmission business will be unbundled to form a new State-owned company.

A tentative deadline of December 31, 2027, is outlined in the RFP for the completion of the transaction, but the IFISA officials who briefed potential bidders during a virtual session, acknowledged that the timeframe was unlikely to be met.

A timetable included in the RFP that outlined the various deliverables for the transaction adviser points to the work being completed only after the end of next year, with much hinging on the appointment date, which is uncertain.

In all, seven deliverables are outlined, including an indication that the transaction adviser should hand over a final integrated transaction report one year from the date of the appointment, with the transaction slated to close two months later.

Much emphasis was given during the briefing to proving, through the bid submission, that the members of the transaction advisory team, as well as the bidding company or consortium, had the qualifications and experience to deliver on the project.

Besides having an advanced post-graduate qualification in accounting, finance, economics, commerce, law or business management, the lead adviser would need to demonstrate that she or he had at least 15 years of experience in leading comparable corporate restructuring activities.

The company or consortium, meanwhile, would need to prove that it had participated as a lead adviser in at least three major corporate restructuring, demerger, carve-out or unbundling transactions, preferably in the electricity sector.

In addition, at least two of the three transactions should have exceeded a R50-billion enterprise, transaction or asset value.

IFISA also used the briefing to indicate that it had no intention of postponing the bid submission deadline of September 30 and to confirm that those who had not participated would not be eligible to bid.

It also reaffirmed that there was no intention to revisit the policy decision to establish the TSO with ownership and control of the transmission assets.

In addition, the principle that the restructuring be implemented in a way that ensured that Eskom was not financially worse off and that the new TSO itself was financially sustainable, was reiterated.

There are fresh moves under way to persuade government to implement additional duty rebates on long-steel products being imported into South Africa amid reports of supply shortages that have arisen after the closure by ArcelorMittal South Africa (AMSA) of its longs business.

Following the first phase of a wide-ranging steel tariff review, duties were increased from 0% to 10% in May across all long-steel imports, including on bars, rods, wire, sections and structural steel.

In addition, following a separate anti-dumping investigation, imports of structural steel and steel sections from China and Thailand have, since March, been exposed to antidumping duties of 74.98% and 20.32% respectively.

Government is currently providing limited duty relief from both the general customs duties and anti-dumping duties for products certified as not being produced domestically. It has, however, not yet expanded the rebate coverage as initially anticipated to ensure that there were no supply disruptions following the closure of AMSA's longs business.

XA Global Advisors COO Pieter du Plessis reports that, while the wide-ranging steel tariff review and the anti-dumping probe are distinct processes and have, correctly, been treated as such by the International Trade Administration Commission of South Africa (Itac), the expansion of Schedule 4 rebates to provide the necessary duty relief on products not produced in the Southern African Customs Union (Sacu), is part of the steel industry tariff review that is still in progress.

He attributes this disruption to the fact that only partial duty relief is currently provided pending the finalisation of the current phase of the steel review.

Itac is expected to publish a new Gazette notice imminently in this regard, which will include a 30-day comment period. It is, thus, unlikely to send any recommendations to the ministers of trade, industry and competition, and finance before the end of November.

The problem is said to be especially acute for structural steel imported under the 72.16 tariff heading, where imports from the key source markets of China and Thailand face anti-dumping duties in addition to the 10% general duty.

This steel is typically used in the mining, construction, and manufacturing sectors.

Du Plessis says there is now industry-wide concern about low or no stock, alongside reports of shipments being diverted to other markets, rising storage costs for products held in bonded warehouses, and delayed shipments in anticipation of the rebates being created to avert a supply crunch.

"When AMSA exited long-steel production, the downstream value chain de-stocked while anticipating the implementation of the required rebate items, which have not materialised," he explains.

Du Plessis says that several industry participants are aiming to approach government to explain the urgency of the matter, and to seek an "expedited" decision on the extension of rebates during October to address the immediate shortages that are currently being reported.

He notes that the relief industry will seek is in line with that signalled in a November 2025 Gazette notice published after Itac concluded the first phase of the steel tariff review. That notice flagged possible rebates at a four-digit level, which would represent a broad-based potential for relief, for long steel products captured under five tariff headings, including 72.13, 72.14, 72.15, 72.16 and 72.17.

He argues that the implementation of such rebates would not result in the removal of protection for domestic manufacturers of long-steel products, as any relief on the customers or anti-dumping duties would be granted only once the South African Iron and Steel Institute has provided confirmation that the products in question are not produced locally.

It is understood that concerned companies could seek to have the issue place before the Itac Commission during one of its two meetings in October so that it can deliberate on the proposal to extend rebate cov...

Engineering News editor Terence Creamer discusses the increasing focus on infrastructure as South Africa seeks to arrest decay and lay the foundations for a return to growth, as well as the role of private sector participation and project preparation in delivering infrastructure.

National Treasury director-general Dr Duncan Pieterse has described moves under way to transfer ownership and control of Eskom's grid assets to an independent Transmission System Operator (TSO) in the coming 18 months as a prerequisite for the investment and competition needed for affordable electricity.

Pieterse co-chairs the Eskom Restructuring Task Team (ERTT) set up by President Cyril Ramaphosa in February to develop a detailed proposal and implementation plan to deliver an independent State-owned TSO.

A Phase 1 report by the ERTT, which has been endorsed by Ramaphosa, has set out a high-level approach to establishing an independent TSO in a manner that leaves Eskom no worse off while ensuring that the TSO is financially sustainable and able to invest in the transmission network.

"Phase 2 of our work is currently under way. This includes the development of a detailed implementation plan, legal due diligence, and a lender engagement strategy, in addition to implementing no-regret actions to prepare for the restructuring. Our detailed implementation plan is due to be submitted to the President later this year," Pieterse told delegates to an RMB Morgan Stanley conference this week.

He said the unbundling of Eskom was in line with the policy set out in the 1998 White Paper on Electricity and international developments, with more than 100 countries having restructured their vertically integrated utilities, including emerging markets such as Brazil, China, India and Türkiye.

Pieterse highlighted the example of India, where the transmission assets of six of the country's power generating entities were amalgamated in 1989 to create the Power Grid Corporation of India Limited. The grid had since been massively expanded and there had been a significant decline in wholesale electricity tariffs.

He said the appetite to invest in new generation continued to grow locally, with about 32 GW of mostly private sector renewable energy projects in the grid connection process.

"We must ensure that these new generators have fair and equal access to the grid, and that, once they are on the grid, the system operator dispatches their power on a level playing field with Eskom power."

The restructuring of Eskom would remove the inherent conflict of interest in vertically integrated monopolies such as Eskom, which was why the unbundling of the TSO was included as a condition of the R234-billion Eskom Debt Relief package in 2023.

NEXT STEP: SECURE NTCSA'S INDEPENDENCE

"It was therefore no accident when the National Transmission Company of South Africa (NTCSA) was established two years ago as a subsidiary of Eskom. The next step is to secure its independence by transferring ownership and control of the assets to an independent TSO."

Such an entity, with its own balance sheet and transparent cashflows, would also be better placed to raise funding in the market at competitive rates and to partner with the private sector to deliver new transmission infrastructure, Pieterse added.

"We aim to implement the unbundling over the next 18 months and will in the interim put governance and regulatory measures in place to strengthen the NTSCA's independence from Eskom."

While acknowledging that reform "is always uncomfortable", he stressed there was now broad agreement on the need for an independent TSO, highlighting that the National Treasury had worked closely with the management teams of Eskom and NTCSA in compiling the ERTT's Phase 1 report.

The concerns centred primarily on the future of Eskom and the impact of this transaction on the fiscal framework.

"It is therefore important to emphasise that this transaction will be structured so that Eskom is not worse off, the transmission entity will be financially sustainable, and our fiscal strategy will remain on track."

He noted that the South African government had spent R464-billion of taxpayers' money to support Eskom over the past decade.

"We therefore have no interest in doing anything to compromise the fut...

The first six priority projects have emerged from government's national green hydrogen programme pipeline.

The projects all form part of the newly launched National Green Hydrogen Deal Book, which presents the wider pipeline of credible opportunities in South Africa's green hydrogen sector to investors, development partners and potential customers.

The six 'first-wave' projects were announced on Tuesday by Minister of Electricity and Energy Dr Kgosientsho Ramokgopa at the 2026 African Green Hydrogen Summit, held in Cape Town.

President Cyril Ramaphosa was set to make the announcement, but was unwell following his trip to attend the BRICS summit in India on the weekend.

"The first wave consists of six projects that emerged from a rigorous assessment process," said Ramokgopa.

"The process has standardised how we assess bankability and strengthen investor confidence."

The first project is Phelan Green's electro-sustainable aviation fuel (e-SAF) project in Saldanha Bay.

The family business has committed $100-million in equity, while also managing to snag an offtake market.

"Construction is expected to begin in the first quarter of 2027 and we expect to see the export of the first e-SAF in the first quarter of 2029," noted Ramakgopa.

"This is an important milestone. As the World Economic Forum noted earlier this year: 'the real bottleneck in scaling clean hydrogen is demand, not technology'. Scaling, therefore, rests on securing long-term offtake agreements.

"As a managed priority portfolio, the first wave concentrates project preparation, investment mobilisation and government coordination on credible projects with defined milestones."

The remaining projects in the first wave reflected the depth of the value-chain, said Ramokgopa.

Hive Energy's Coega green ammonia project in the Eastern Cape has completed early preparatory work. However, further commercial, technical and financing work is needed to reach a final investment decision (FID).

The Saldanha hydrogen direct reduced iron project on the West Coast, is at prefeasibility study (PFS) stage and will link green hydrogen to lower-emission iron and steel production.

The Prieska Power Reserve project in the Northern Cape is a green ammonia project for the domestic market, currently at development stage.

The Green e-Fuels Producers Green Methanol Corridor in Gauteng targets European demand and is at PFS stage.

Finally, the Green Hydrogen Solutions project in the Eastern Cape is a smaller-scale project directed principally towards South African demand. It has completed front-end engineering design.

"By designating these projects as priorities, government and its partners now have a mechanism to help the remaining five projects reach FID, construction and production," said Ramokgopa.

In his own address to delegates at the 2026 Green Hydrogen Summit, Ramokgopa said there was also a 'second wave' of projects that had been assessed and matured for possible inclusion in the priority portfolio.

"A project's inclusion in a Deal Book is not the same as reaching FID.

"Priority status is not the same as construction. A memorandum of understanding is not a bankable customer agreement. An expression of investment interest is not committed capital.

"The credibility of the programme depends on government, developers and partners reporting each milestone for what it is."

Priority status must also carry obligations, as projects receiving focused institutional support would be expected to meet defined development milestones, warned Ramokgopa.

"Where milestones are repeatedly missed without a credible recovery plan, government and its partners must be prepared to redirect scarce project-preparation resources towards projects with a stronger route to implementation."

South Africa possessed substantial advantages in the field of green hydrogen production, added Ramokgopa.

"We have high-quality renewable resources, an established industrial base, platinum group metals, ports and logistics, scientific...

The South African automotive manufacturing industry requires policies and regulations that will allow local manufacturers to compete on equal footing with importers, says Ford Motor Company Africa Operations president Neale Hill.

He says the ongoing refinement of support programmes such as the second phase of government's Automotive Production and Development Programme (APDP2) must ensure that the companies investing capital in local manufacturing are not placed at a structural disadvantage to importers.

"Local manufacturers build skills and create jobs, so we must get this balance right.

"This is not about protectionism. It is about ensuring that the enormous investments already made in this country, and the investments that are still to come, are not undermined by uneven operating realities."

Hill says Ford is advocating for a regulatory framework that supports local industrialisation, protects existing investment, and creates the conditions for continued growth.

"For example, look at the current iteration of the APDP. In order to qualify for APDP2 incentives you have to be at level 4 in terms of broad-based black economic empowerment.

"That demands a certain level of investment. When you are an importer, however, you don't have that hurdle. You need an import licence, and nothing more."

Hill adds that the APDP requires vehicle manufacturers to hold a particular level of employment throughout a model's lifecycle. "This means that you can't explore efficiencies when you are forced to adapt, for example – not that we are looking to reduce our workforce.

"We also have to ask if the 25% import tariff South Africa has in place on vehicles is actually a true hurdle – especially when you look at Chinese importers, for example.

"Some of these manufacturers are heavily subsidised by their national and/or provincial governments."

The current APDP also allows for the trading of production credits, with manufacturers able to use their credits to import the models they do not produce here at a lower cost.

With demand for their vehicles falling in the face of stiff competition from the Chinese and Indian brands, however, some manufacturers are trading these credits to vehicle importers.

"There need to be measures put in place that will control the trading of production credits," says Hill.

"It should be utilised in such a way that it is beneficial to South Africa's vehicle manufacturers."

Hill says Ford is also advocating that there should be no benefits attached to semi-knockdown assembly in South Africa, as this manufacturing set-up uses very little local parts content.

"South Africa needs completely knockdown assembly, nothing less."

Another aspect where Hill believes local manufacturers are losing out is that they are not receiving any benefits for investing in the assembly of new-energy vehicles (NEVs).

"This is true for our plug-in hybrid Ranger, for Toyota, for Mercedes-Benz and for BMW and the NEV models we all produce here," says Hill.

"There is no local stimulus under the APDP that will return some part of that investment. We have been talking about it since 2024, with no progress.

"The reality is that we have to start becoming very obsessed about the speed with which we are not moving."

Hill says Ford, which has been in South Africa for 103 years, has invested nearly R33-billion in its local manufacturing operations over the past 14 years.

The company's Silverton assembly plant in Pretoria was recently recognised as the best-quality Ranger bakkie production plant in Ford's global manufacturing system.

Ford directly employs around 5 000 people across its Silverton and Struandale engine plant manufacturing operations.

Government and the local auto sector are in talks about APDP2 2.0, with industry hopeful of an announcement that will boost the local manufacturing sector before the end of the year.

The domestic sales of locally made vehicles have been declining steadily in favour of rapidly increasing imports, especially over t...

The Development Bank of Southern Africa (DBSA) reported record disbursements of R20.7-billion in 2025/26, up from R17.5-billion in the prior year, and has indicated that the outlook for disbursements in 2026/27 is also strong as infrastructure receives greater prominence within government.

CEO Boitumelo Mosako said the State-owned development financier had finalised a strategy aimed at supporting a scaling up of project delivery by expanding the infrastructure pipeline and accelerating implementation.

She said particular attention was being given to project preparation, which had emerged as a constraint to implementation, as well as to achieving the objective of raising gross fixed capital formation to 30% of GDP, from about 14% currently.

The DBSA calculated its total infrastructure development support last year at R62.4-billion, which it said included the R20.7-billion in loan and equity disbursements, alongside R6.5-billion in delivered infrastructure value, R17-billion in approved prepared projects, the unlocking of R3.5-billion in infrastructure for under-resourced municipalities, and R14.7-billion in funds catalysed.

Mosako said this support was delivered while increasing net profit to a record R7.8-billion, a 47% rise from the R5.3-billion reported in the prior year.

The outlook for disbursements in the current financial year had been buoyed by a strong performance in the first half, during which approvals of some R35-billion were made.

Speaking at the group's results, Finance Minister Enoch Godongwana underlined the DBSA's central role in assisting government in meeting its objective of investing R1-trillion directly in infrastructure over the coming three years, while also unlocking private-sector participation in areas such as grid development, logistics and water.

Part of government's direct expenditure would be geared towards addressing serious water and municipal backlogs, with R205-billion earmarked for municipal infrastructure within the larger R1-trillion commitment.

THREE-YEAR JOBURG INTERVENTION

The Minister also revealed that the DBSA would play a role, together with other institutions, in supporting a package of measures aimed at turning around the crisis-ridden City of Johannesburg.

"We have started to develop a plan for an intensive intervention in the City of Johannesburg.

"We intend to go there and stick around for three years . . . irrespective of the outcome of the elections.

"I can tell you now, whatever the outcome of the elections, any government that comes out of Johannesburg will need our support," Godongwana said in an address made ahead of local government elections scheduled for November 4.

He also saw higher levels of infrastructure investment as central to raising the prevailing low levels of economic growth. South Africa's GDP contracted by 0.2% in the second quarter, breaking a six-quarter streak of positive, albeit weak, growth.

Making reference to the 3% growth objective set recently by the Government-Business Partnership, Godongwana said the infrastructure backlog represented a growth opportunity that was not constrained primarily by financial resources, but by the capacity to implement.

Mosako said stronger execution would be the central focus at the DBSA in the coming period, alongside the creation of partnerships to accelerate delivery, including partnerships with the private sector.

The private-sector participation model used by the DBSA with government to facilitate the introduction of renewable-energy independent power producers over the past number of years was currently being adapted for sectors such as rail, ports, logistics and student housing.

In addition, the Credit Guarantee Vehicle to mitigate the risks for private electricity grid projects in the absence of government guarantees was also at an advanced stage of development and was expected to be capitalised by 2027.

"I'm quite excited that we have got to focus on this infrastructure story. We have got deficient infrast...

Public consultations on the draft Network Statement Version 4, which will govern access to South Africa's national rail network for the coming two years, have been concluded and it is anticipated that the document will be Gazetted imminently.

Transnet Rail Infrastructure Manager (TRIM) CEO Moshe Motlohi tells Engineering News that the final consultations on the document were concluded with the Department of Transport (DoT) in early September, following a public-comment phase launched in early July.

If accepted, and in line with what was presented to stakeholders during a DoT-arranged public consultation in July 2026, the Gazetted statement will extend the rail access agreement contract period from 10 to 15 years. The change is intended to improve the bankability of the business case for private train operating companies (TOCs) and support longer-term investment in rail operations.

This lengthening of the contract tenure will be extended to the 11 private TOCs that signed rail access agreements with the TRIM in May, with the option to renew such access at the end of their terms remaining intact, provided they can account and present a volume commitment for the extended period.

The first private TOCs are expected to begin pilot operations before the end of 2026, with the others expected to enter the mainline network from 2027 onwards.

The introduction of private TOCs to South Africa's mainline rail network forms part of reforms aimed at increasing rail volumes to 250-million tons by 2030.

In 2025/26, Transnet Freight Rail (TFR), which has hitherto been a monopoly operator, increased its volumes by 4.9% to 167.9-million tons, short of its 180-million-ton target.

Motlohi says several other changes will also be introduced under the new statement, including the formal introduction of an 'Ad hoc methodology', whereby rail slots will be released for shorter periods when network capacity becomes available because of "unforeseen circumstances".

These ad-hoc allocations will be available to the existing 12 operators, including TFR, as well as new entrants.

Some additional slots will also be released under Network Statement Version 4, but Motlohi says that the prevailing network constraints will result in fewer new slots being released than was the case in the previous statement.

"Some new slots will become available, but we are nearing saturation given the state of the network.

"We, therefore, want to use the coming two years to focus more on improving the network, which will enable us to release more capacity," he tells Engineering News, while confirming that the statement will now be updated every second year rather than every year as initially envisaged.

Motlohi says TRIM is gearing up to invest some R9.2-billion yearly over the coming five years on maintenance and upgrading, describing improving the state of the network and reducing theft and vandalism as "burning platforms".

In 2025/26, TRIM and TFR reported 5 657 incidents of theft and vandalism, which represented the lion's share of all security incidents across the larger Transnet group.

Transnet reported losses of R1.7-billion as a result of 5 870 incidents across its rail, ports, pipelines and property businesses.

To combat these "security attacks", Motlohi reports that community-engagement efforts have been stepped up in a bid to identify and arrest culprits, alongside the introduction of new technologies to reduce the risk of further attacks.