South Africa’s electricity transmission grid is emerging as a central pillar of the country’s energy reform and decarbonisation drive, with global energy group ENGIE positioning itself as a potential long-term partner in grid expansion, flexibility solutions and market development.

Speaking during a recent webinar on investing in South Africa’s electricity transmission grid, ENGIE South Africa’s MD for Renewables and Batteries Sanjeev Mungroo said the country’s reform trajectory broadly aligns with international best practice, particularly in the move from a vertically integrated monopoly model towards a more competitive, unbundled electricity sector.

He noted that South Africa’s planned wholesale electricity market and the unbundling of transmission functions mirror reforms implemented in regions such as the EU and Latin America, where market liberalisation helped unlock private investment and accelerate infrastructure build-out.

ENGIE, which entered the South African market about two decades ago and has been prequalified under the country’s Independent Transmission Projects (ITP) programme, brings international transmission experience that it believes is directly relevant. Globally, the group owns and operates about 5 800 km of transmission lines across Brazil and Chile and is targeting expansion to 10 000 km by 2030.

Drawing comparisons with other markets, Mungroo pointed out that South Africa’s current constraints — including heavy coal reliance and transmission congestion — are not unique. India, historically dependent on coal, has rapidly expanded renewables through policy reform and grid investment, while Chile’s geographically stretched system faced regional congestion that catalysed major transmission development. ENGIE has been active in both markets.

He cautioned, however, that transmission roll-out is inherently complex and time-consuming. As an example, ENGIE’s construction of over 2 000 km of transmission lines in Brazil took about six years to complete. This underlines the need for complementary, faster-to-deploy solutions to relieve grid pressure while large-scale build programmes progress.

Among these are battery storage, hybrid energy projects and demand-side management. Mungroo said these technologies should not be treated as add-ons, but as integral tools to ease congestion and improve system flexibility. Flexible dispatch and storage can reduce strain on constrained corridors and, in some cases, lower the required level of fixed transmission infrastructure, even where managed curtailment carries a cost.

From an investment perspective, policy certainty and transparent rules remain decisive. Mungroo stressed that private capital historically flowed at scale when frameworks were predictable, competitive and bankable. Priority measures include a clear, bankable transmission policy, transparent grid access allocation, and streamlined permitting processes to avoid project delays.

He also highlighted the importance of stable, multiyear planning instruments, including the ITP and market reforms such as the South African Wholesale Electricity Market, alongside competitive, open-access transmission tariffs and the operational independence of the National Transmission Company South Africa to prevent market distortion.

While the transmission build-out presents a significant engineering challenge, Mungroo highlighted that it should ultimately be viewed as an economic growth opportunity, provided that implementation is accelerated and scaled.