South Africa’s long-planned 3,000 MW natural gas power plant in Richards Bay faces fresh uncertainty after the Supreme Court of Appeal annulled Eskom’s government-granted permit, citing inadequate public consultation.
The ruling forces Eskom to refile its application and engage in a new round of public participation. Environmental groups, including the South Durban Community Environmental Alliance, welcomed the decision, pointing to Eskom’s history of emissions and pollution.
Project Factsheet
Project: Gas Power Plant
Developer: Eskom (a state utility)
Planned Capacity: 3,000 MW
Location: Richards Bay, KwaZulu-Natal, South Africa
Status: Permit annulled (Sept 17, 2025). Will need to undergo new public consultation
Cited Project Use: Grid stabilization, diversification from coal
Challenges Faced: Legal opposition, financing hurdles, environmental concerns
Court Annuls Permit for Eskom to Build Gas Power Plant: Here are the Implications
The Richards Bay project was intended to stabilize South Africa’s grid, which continues to face recurring load-shedding. Eskom’s blowback comes at a sensitive time as the utility gets burdened by debt and a struggling coal fleet.
To counter this, the state utility has also been seeking to diversify its generation mix with natural gas as a transitional fuel, complementing ongoing investments in renewables and nuclear energy such as the construction of Africa’s second nuclear power plant in Western Cape.
Additionally, while natural gas remains part of the government’s Integrated Resource Plan (IRP), growing opposition from both legal and financial fronts may tilt the balance further toward wind, solar, and battery storage, where costs have declined and private sector interest is stronger.
South Africa’s Supreme Court of Appeal ruling to annul the permit for Eskom to build a 3 GW gas power plant also complicates the utility’s financing options. Multilateral lenders have also shown preference for funding renewables, while natural gas projects are increasingly scrutinized. This is clearly evidenced by the latest approval of the 1 GW Carrisa onshore wind project. With the Richards Bay plant valued in the billions of dollars, the annulment may delay or even derail procurement timelines.
The long-standing case also echoes wider trends in Africa where fossil-fuel projects are being challenged. However, neighboring countries like Namibia and Mozambique have pivoted to LNG export ambitions, while South Africa continues to face domestic pushback over its reliance on fossil fuels.
