South Africa’s Power Grid Strained as Clean Energy Projects Face Transmission Bottleneck

Despite ambitious plans to expand clean energy generation, South Africa faces a critical bottleneck: a lack of power lines to transmit electricity from new projects to consumers, Bloomberg reports.

This transmission constraint is hindering the country’s efforts to end chronic power outages and revitalize its struggling economy.

Bernard Magoro, head of the Independent Power Producer Office (IPPO), revealed that South Africa has been forced to sideline wind energy projects, a significant source of the country’s electricity, due to grid connection limitations in recent bid windows.

The situation highlights a pressing need for a substantial investment in the national grid, estimated at 390 billion rand ($22.4 billion) over the next decade. This expansion is critical for connecting new power plants with factories, businesses, and homes.

Eskom, the state-owned utility responsible for more than 80% of South Africa’s electricity supply, is retiring aging coal-fired power units. This, coupled with the expected commissioning of 53,000 megawatts of mostly clean energy facilities in the coming decade, places immense pressure on the existing grid infrastructure

Companies like Enel Green Power have opted out of the seventh round of South Africa’s clean energy auction program, citing the unresolved grid capacity issues.

Priscillah Mabelane, Chairperson of the newly formed National Transmission Company South Africa (NTCSA), which is responsible for the country’s transmission system, acknowledged the challenges. “We do recognize that we have challenges due to the lack of investment” in the grid, she said.

Beyond the immediate grid constraints, South Africa faces broader challenges that have deterred investment. These include rampant corruption, inconsistent legislation, and strained relations between business and the government.