South Africa’s grid transmission infrastructure is constrained, and it is critical that this be dealt with to support the country’s goal of increasing its energy supply and diversifying its energy mix, while contributing to socioeconomic development.

This was highlighted by speakers during Creamer Media’s Energy Outlook 2025 webinar: “Accelerating Investment in South Africa’s Transmission Network”, held on January 29.

The overall sentiment was that, while there are challenges to contend with, and a lot of work to be undertaken, the country is moving in the right direction, with several positive steps taken, and opportunities identified in public-private collaboration.

ENGIE Asia, Middle East and Africa Renewables MD Mohamed Hoosen pointed out that, while the challenge of constrained transmission infrastructure is not unique to South Africa, it is important that it be resolved.

National Transmission Company South Africa (NTCSA) interim CEO Segomoco Scheppers commented that having Eskom split into different operating units allowed for proper consideration and prioritisation to now be given to transmission infrastructure, with the NTCSA set up to focus solely on the country’s transmission network.

He also lauded the Energy Amendment Act of 2020 as a step in the right direction.

Independent Power Producer (IPP) Office head Bernard Magoro added that the Energy Regulation Amendment (ERA) Act, which was assented to last year, showed that government was moving in the right direction.

Scheppers said the NTCSA was now focused on preparing to implement the programmes that had been laid out and was awaiting the outcome of the National Energy Regulator of South Africa's (Nersa’s) decision on revenue applications, with this to provide an indicator on what could be invested and how quickly rollout of infrastructure could occur.

Magoro said the IPP Office was also preparing for the rollout of these programmes.

Providing a private-sector perspective, Hoosen also acknowledged the work government had done to mitigate the impact of transmission infrastructure constraints. He pointed out that the ERA and the NTCSA provided opportunities to invite the private sector to collaborate with government to unlock transmission infrastructure, noting that the company had undertaken considerable work on this globally, and had the experience and capacity to do so in South Africa as well.

Touching on the finance side, RMB senior investment banker Keith Webb said there was an appetite and capacity to finance transmission infrastructure projects. From a lender's point of view, he said that the transmission infrastructure landscape was largely similar to other asset classes of infrastructure.

He noted that funders were familiar with investing in these asset classes and could facilitate considerable funding for transmission infrastructure as required, having done so previously for energy generation infrastructure, for example. 

Aon strategic account manager Santesh Pillay added that, when assessing the risks of projects, areas of consideration included supply chain issues, skills shortages, production duration and rapidly evolving technology.

Meanwhile, Development Bank of Southern Africa transacting group executive Mpho Mokwele emphasised the importance of implementing a development programme in parallel to infrastructure projects, to ensure the challenge of high unemployment was tackled.

He also highlighted the importance of local businesses and communities being involved in ownership while capacity building was pursued.

Moreover, the country was grappling with a skills capacity challenge, Mokwele said, and with a need to create employment, this provided an opportunity to undertake skills development programmes in tandem with rolling out infrastructure projects.