The National Transmission Company South Africa (NTCSA) has confirmed that the target date of April 1, 2026, for the launch of the South African Wholesale Electricity Market (SAWEM) will not be met, and has announced that the launch has been delayed to the third quarter of 2026.

The delay is not unexpected, and followed an assessment undertaken with the National Energy Regulator of South Africa (Nersa) and industry participants, which found that more work was required to ensure that all market, operational and regulatory requirements were fully in place ahead of the launch.

“The introduction of the wholesale electricity market, when all requirements are ready and met, will represent a significant step forward for South Africa’s energy sector,” NTCSA CEO Monde Bala said in a statement, adding that adjusting the implementation timeline ensures that the market is introduced responsibly.

“We are laying the foundation for a more efficient, transparent, and competitive system that, over time, will support lower electricity costs and attract the investment needed to ensure long-term energy security,” Bala added.

The NTCSA, which was granted a Market Operator licence in December, has confirmed to Engineering News & Mining Weekly that the Market Code was formally submitted to Nersa for approval on February 25.

The Market Code is a key document, as it defines the rules by which the electricity market will operate and sets out how electricity can be bought and sold between different participants in the market, including generators, traders and large customers.

The draft code has been developed by the NTCSA in collaboration with a wide range of stakeholders and the regulator is now expected to follow its normal approval process, which includes reviewing the document and allowing stakeholders to provide comments before deciding on the final Market Code.

Preparations for the market are continuing, with a phased approach being followed to allow systems and processes to be tested under real operating conditions while the regulatory process is completed.

“The initial phase will focus on establishing operational readiness and testing the trading systems and settlement processes.

“As the regulatory framework is finalised, the market will progressively open to independent generators, traders and other participants, expanding competition and participation in the electricity sector,” the NTCSA explained.

It is also obligatory for participants in the market to have participated in the so-called ‘SAWEM School’ training programme, set up to prepare the electricity sector for the market.