South African Energy Ministry Urges Stakeholders to Review Proposed Tariff Hikes and Staged Consignment Reforms

DEE calls for comments on Itac proposals to raise tariffs and end staged consignments for solar and wind components to protect South African manufacturing.

By: AXL Media

Published: Mar 31, 2026, 8:59 AM EDT

Source: The information in this article was sourced from Engineering News

A Strategic Call for Industry Feedback

The Department of Electricity and Energy, or DEE, has formally invited value chain partners to provide input on a series of regulatory shifts proposed by the International Trade Administration Commission of South Africa. These proposals, recently published by Trade, Industry and Competition Minister Parks Tau, represent a significant effort to realign the nation’s trade policies with its green energy ambitions. The commentary period, which remains open until late April, is intended to ensure that the final determinations reflect the practical realities of the private and public sectors involved in the South African Renewable Energy Masterplan.

Targeting Imported Components for Increased Protections

The scope of the proposed tariff adjustments covers a broad spectrum of hardware essential for the transition to sustainable power. Key items under review include fully assembled lithium batteries, solar panels, inverters, and single axis trackers, as well as various steel auxiliary parts. By raising the cost of these imports, the government aims to create a more competitive environment for domestic producers who are currently struggling against lower cost foreign alternatives. Deputy Minister Samantha Graham-Maré noted that the plan is a pragmatic, demand led strategy designed to promote manufactured components where South Africa already possesses a competitive edge.

Addressing the Threat of Staged Consignments

A critical element of the new proposal involves the termination of staged consignments for identified renewable energy components. Research conducted by the Local Content Compliance Unit has identified this practice as a direct threat to the sustainability of the domestic steel and manufacturing sectors. In particular, the tower manufacturing industry in Atlantis, Cape Town, has seen over 300 jobs come under direct threat due to current consignment regulations. Eliminating these loopholes is viewed as a necessary step to safeguard existing investments before the state can reasonably pivot toward fostering new manufacturing opportunities.