South Africa’s Electricity and Energy Minister Kgosientsho Ramokgopa has presented a revised plan to achieve energy access for all South Africans by 2030. In his Budget Vote speech at the National Assembly on July 10, Ramokgopa also outlined his department’s strategy for 2025/2026 financial year.

The minister noted an increased annualised energy availability factor (EAF) of 60% achieved in the year ending April 2025, which resulted in effective eradication of planned power outages, or load shedding, by the state-run power utility Eskom.

According to Ramokgopa, the utility is now gearing to improve the EAF to above 70% by the end of the current financial year.

“It is this progress that we seek to consolidate in the 2025/2026 financial year,” he stated during his speech published by the Department of Mineral Resources and Energy (DMRE). “However, this Budget Vote is not just about resolving a crisis. It is about reshaping the future. Our long-term task is not only to stabilise the system, but to reform its structure.”

Ramokgopa’s proposals in the Budget Vote are aligned with his department’s 2025 to 2030 Strategic Plan focused on five priorities: achieving universal access to affordable, quality energy; securing national and regional energy supply; driving industrialisation and innovation; transforming the energy sector demographically; and strengthening South Africa’s leadership in continental and global energy affairs. The Budget Vote, he says, serves as both a declaration of intent and a roadmap for action.

South Africa still has 1.6mn unelectrified households, mainly in informal settlements, peri-urban zones and rural areas in the Limpopo, Eastern Cape, and KwaZulu-Natal provinces. To address this long-standing backlog with electrification, the Department of Electricity and Energy has launched a Universal Access Strategy to move beyond a grid-only approach.

The strategy promotes a coordinated, technology-neutral framework combining grid and off-grid solutions, with shared responsibilities across national, provincial, and local government.

Key reforms include: 1) consolidating all access programmes, including the current Integrated National Electrification Programme (INEP) grant, under a single funding model; 2) upgrading infrastructure to support new connections; and 3) expanding off-grid systems and micro-grid solutions. The strategy positions electrification as a developmental right and aims to achieve full access by 2030 while supporting broader socio-economic goals.

“We must build an electricity sector that is affordable, democratic, and rooted in the needs of our People. That means expanding access, lowering prices over time, and using energy infrastructure to drive industrialisation, job creation and economic inclusion,” Ramokgopa said.

Over the medium-term expenditure framework, the government has committed a total of ZAR13bn ($722mn) to the INEP. According to the minister, this is not just a funding line, but a firm commitment to end energy poverty and lay the foundation for achieving universal access by 2030. Recognising that the total investment needed exceeds what public finances can provide, the department is working with the National Treasury and development finance institutions to design a blended financing model.

By using public funds to de-risk private investment, the new model will attract additional capital from debt markets and concessional funding. The goal is to bring in more funding to fast-track electrification in key provinces and municipalities, while creating a steady flow of projects that appeal to large investors. “This approach positions universal access as a bankable development investment with measurable returns in health, education and economic participation,” the minister explained.

Furthermore, the department has also initiated a review of the energy pricing policy. “This review is central to addressing affordability constraints, particularly for indigent communities that remain energy poor despite formal connections,” Ramokgopa said.

The revised policy will propose differentiated tariffs to protect vulnerable households, while supporting large industrial users with internationally competitive tariffs. “To power a nation is to shape its future. To do so equitably is to anchor that future in justice,” the minister stated.