Ramokgopa defends projects awarded to Andre De Ruyter’s right-hand man

Minister of Electricity and Energy Kgosientsho Ramokgopa has defended the award of four large battery storage projects to Mulilo Energy, chaired by former Eskom COO Jan Oberholzer.

The projects were awarded under the government’s Renewable Energy Independent Power Producer Procurement (REIPPPP) programme, and the latest bid window for battery storage systems (BESS).

Mulilo Energy, chaired by Oberholzer, was awarded four out of five BESS projects, representing a combined investment of R7 billion. 

The outcome sparked backlash from labour unions, political parties, and business groups, which raised concerns about transparency and potential conflicts of interest.

The National Union of Mineworkers (NUM) described the decision as a direct and undeniable conflict of interest, bordering on white-collar corruption.

NUM criticised Oberholzer’s previous advocacy for the REIPPPP while at Eskom, and questioned the ethics of his appointment as chair of a company that now benefits from the same programme.

“The optics are troubling,” said the union. “This creates an unacceptable ethical dilemma and raises serious questions about the integrity of the procurement process.”

Further criticism came from the uMkhonto weSizwe (MK) Party and the Black Business Council (BBC), which demanded full transparency around the tender process that led to the BESS awards.

In response, Ramokgopa’s department said the process had undergone rigorous legal, technical, and financial due diligence.

The minister also said the procurement was fully compliant with the Constitution and aligned with goals to promote inclusive growth, particularly for historically marginalised communities.

While acknowledging concerns about the concentration of contracts in one company’s hands, Ramokgopa argued that competitiveness should not be punished. 

“We must avoid a situation where excellence is penalised,” he said, adding that the priority is ensuring energy security and grid stability.

Ramokgopa stressed the importance of the BESS programme in modernising the national grid, making it more efficient and enabling greater integration of renewable energy from solar and wind sources.

He also highlighted the broader success of the REIPPPP initiative, noting that 10 bid windows have been concluded since the IPP Office was established. 

“These have collectively attracted at least R292 billion in infrastructure investment,” he said. The minister also pointed to significant transformation milestones within the programme:

R112 billion has been spent on Broad-Based Black Economic Empowerment (BBBEE), representing 74% of total procurement;

• Local content spend reached R81.2 billion by December 2024;

• Black South Africans now hold 38.1% equity in awarded projects, with 8.8% held by local communities; and

• More than R4 billion has been channelled into socio-economic and enterprise development programmes;

Ramokgopa added that over 90,000 employment opportunities have been created during both the construction and operation phases.

Jan Oberholzer and Mulilo Energy

Jan Oberholzer became a prominent public figure during his tenure as Eskom’s COO under former CEO André de Ruyter, serving during some of the most turbulent years at the embattled utility.

He officially retired from Eskom on 30 April 2023 but continued in a fixed-term role to assist with important projects at Koeberg and Kusile Power Stations. At the end of July 2023, he officially parted ways with Eskom.

Just two months later,  Mulilo Energy announced Oberholzer’s appointment as non-executive director and chair of its board. 

The company cited his extensive experience in the energy sector, particularly in leading complex, large-scale infrastructure projects.

“He is globally recognised for his dynamic leadership and commitment to fostering positive change within the energy industry,” the company said at the time. 

Mulilo added that his strategic vision aligned with their mission of accelerating South Africa’s transition to clean energy.

Mulilo plans to develop, own, and operate 5 gigawatts of wind, solar, and battery storage projects over the next five years. The company believes Oberholzer’s guidance will help it achieve this goal.

Oberholzer noted that Mulilo is a pivotal player in South Africa’s energy future. “It is an organisation investing in long-term, diverse, and sustainable energy solutions, which is exactly what the country needs,” he said.