Richards Bay to implement IPP power generation projects totalling 5950MW including 800MW offshore wind farm

• Richards Bay Industrial Development Zone (RBIDZ) attracts R244bn in pipeline investments, with R185bn focused on energy generation.
• Four energy projects totalling 5 950MW are approved for implementation this financial year to address local electricity shortages.
• MoU signed to develop gas infrastructure supporting LNG imports at the Port of Richards Bay, enabling wider distribution across KZN and nationally.

Richards Bay is poised to become a major industrial and energy hub in KwaZulu-Natal as R244bn in investments are lined up, with the bulk underpinned by energy generation projects, according to Richards Bay Industrial Development Zone CEO Thabane Zulu.

Speaking at the inaugural KZN Energy Indaba in Empangeni last week, Zulu revealed that four environmentally approved and board-sanctioned projects totalling 5 950MW will be implemented this financial year. These include Phakwe Group with 2 400MW, Pictro Power at 2 000MW, Mabasa Energy with 750MW, and Gagasi Offshore Wind at 800MW. With peak electricity demand already exceeding 6 700MW, local generation and alternative energy sources are seen as urgent priorities.

“The RBIDZ is likely going to be the biggest single investment in KZN once the gas-to-power programme proceeds,” Zulu said. “Richards Bay is the ideal location to transform the economic landscape of the region and the province. It is a game changer. We will soon announce another 4GW of gas-to-power interventions.”

EDTEA MEC Musa Zondi highlighted the role of partnerships in driving industrial growth. “Thriving cities and industrial hubs rest on three pillars: public-private partnerships that mobilise capital and innovation, functional municipalities that provide efficient services, and reliable intergovernmental coordination that resolves constraints and aligns infrastructure sequencing. Our commitment is to strengthen each pillar so Richards Bay and the broader KZN economy can scale up rapidly and sustainably.”

KZN Premier Thami Ntuli underlined the central role of energy in the economy. “Energy powers industry, enables manufacturing, sustains commerce, and supports households and public services. Without reliable and affordable energy, economic activity slows, investment hesitates, and growth opportunities are constrained. Every factory, port, and small business depends on certainty in energy availability,” he said.

The indaba also saw the signing of a memorandum of understanding between the Zululand Energy Terminal and RBIDZ. The agreement will establish a framework for developing gas infrastructure to support the proposed LNG import project at the Port of Richards Bay. The focus will include enabling infrastructure for distributing regasified LNG to multiple users locally and nationally, and exploring a Gas Custody Transfer Station within the RBIDZ to facilitate distribution to third-party pipelines and downstream users.

Author: Bryan Groenendaal