- Transmission grid expansion is vital to unlock renewable energy projects and prevent future load-shedding.
- Private sector investment is essential to deliver South Africa’s ambitious R390 billion grid expansion plan.
South Africa’s transmission grid expansion has become the defining issue for the country’s energy future. The failure to expand grid capacity already blocks renewable projects and threatens clean energy development and long-term energy security. Unless urgent investment arrives, the country could face another severe energy crisis within the next decade.
Jan Fourie, CEO of renewable energy firm Mulilo, explained that South Africa will need about R390 billion over the next 10 years to connect renewable projects to the grid. Without that investment, many projects may never connect to the grid, and consequently, the risk of further load-shedding will increase.
He stressed that several gigawatts of projects are already waiting; however, they cannot be linked to the national grid. Many of the most promising renewable sites, with abundant wind and solar resources, still lack the infrastructure to connect. This shortfall exists because Eskom originally designed the grid around coal plants, and therefore, most lines now simply move electricity from those plants to major cities.
Times have changed. With renewable generation distributed nationwide, South Africa must redesign and expand its transmission system. Fourie added that substations matter as much as new lines because they function as “big multi-plugs for power lines.” Substations join power lines, regulate voltage, and direct electricity nationwide.
Currently, ready-to-go renewable projects with financing and buyers remain on hold because the grid lacks sufficient capacity. Although the government promised to expand the network, progress remains slow. Consequently, Fourie argued that Eskom cannot shoulder the responsibility alone. Instead, the private sector must step in quickly to accelerate delivery.
In July 2025, the Department of Electricity and Energy invited private groups to join a pre-qualification process for grid expansion. The plan covers 14,218 km of new transmission lines alongside substations nationwide. Therefore, private bidders must design, finance, build, and operate these assets while demonstrating their technical expertise and financial strength.
In 2023, Minister Kgosientsho Ramokgopa announced Eskom’s target to extend the grid by more than 14,000 km and expand transformers sixfold. That plan represented a 600% increase in transmission capacity. However, by November 2024, Eskom had fallen well behind schedule. Instead of building 2,500 km annually, Eskom managed only 300 km per year.
Energy analyst Peter Attard Montalto observed that South Africa must urgently unlock future capacity. He further highlighted that renewables, batteries, and pumped storage systems should spread across the country to stabilise supply.
South Africa’s energy transition cannot succeed without a modern, expanded grid. The need for transmission grid expansion has therefore become critical. With timely investment and meaningful private participation, the country can avoid a worsening crisis and unlock its renewable energy potential.