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In Blow to Power Supply, S. Africa Court Rejects Permit for 3,000 MW Gas Plant

In Blow to Power Supply, S. Africa Court Rejects Permit for 3,000 MW Gas Plant
Thursday, 18 September 2025 12:45

• South Africa court voids Eskom’s 3,000 MW gas plant permit
• Ruling cites inadequate public consultation, forcing new application
• Decision highlights tensions between energy transition and legal hurdles

South Africa's Supreme Court on Wednesday overturned the permit for state-owned power utility Eskom to build a 3,000 MW natural gas plant, citing insufficient public consultation. According to Reuters, the decision forces Eskom to restart the process for a project that was a key part of the country's plan to move away from coal and fight power outages.

The ruling declared the permit "null and void" and requires Eskom to file a new application that complies with public participation requirements. The plant was planned for Richards Bay, the same site as the country's first liquefied natural gas (LNG) import terminal, which is meant to secure gas supplies and help reduce the power sector's environmental impact.

The court's decision was the result of a legal challenge from environmental NGOs that have criticized Eskom's pollution record and demanded more transparency. The ruling highlights a fundamental issue in the country: the legal system's inability to reconcile energy urgency with procedural requirements.

In recent years, projects by TotalEnergies, Shell, and other companies have been halted due to a lack of consultation or flawed impact assessments. As a result, critical energy projects have become bogged down in the courts instead of moving forward.

South Africa finds itself caught between vigilant NGOs, a judiciary that is quick to overturn permits, and a government that has yet to establish a clear and predictable framework for investors. The country faces a dilemma: it must both reduce its reliance on coal and guarantee a stable electricity supply to prevent blackouts. However, the proliferation of legal challenges in the energy sector threatens to slow down private investment and delay crucial projects.

While the legitimacy of public consultations is not in question, the country must find a balance that allows it to move forward with critical projects without being derailed by procedural irregularities. Until that balance is found, South Africa's energy transition risks remaining a slow and complex process, with legal decisions having a major impact on national energy security.

Olivier de Souza

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