- South Africa requires R390 billion to expand its national transmission grid.
- Without upgrades, renewable projects worth gigawatts will stay disconnected.
The South African energy crisis continues to intensify as transmission grid bottlenecks delay renewable projects and worsen the risk of load-shedding. Jan Fourie, CEO of renewable energy firm Mulilo, warned that South Africa must urgently expand its grid to avoid collapse. Over the next decade, the country will need around R390 billion to connect renewable projects that are already prepared for development.
Without this critical investment, projects cannot reach the grid. This failure could trigger severe electricity shortages within ten years. Fourie explained that gigawatts of renewable power sit idle because the best sites lack transmission access. Historically, Eskom built the grid around coal plants, sending electricity to cities while ignoring remote areas. Consequently, regions with the strongest wind and solar resources remain poorly connected.
Fourie also stressed the importance of substations alongside new power lines. He described them as “multi-plugs” that join lines, switch power, and boost voltage for national transmission. Limited capacity, however, forces many financed renewable projects with confirmed buyers to remain idle.
Although the government pledged to expand the grid, progress has been painfully slow. Fourie insisted Eskom cannot handle the task alone. He urged swift private sector participation alongside the new National Transmission Company of South Africa. “If nothing happens in three to five years, projects will remain stuck,” he warned.
The Department of Electricity and Energy recently invited private firms to join the R390 billion expansion. The plan targets 14,218 km of new transmission lines. Officials emphasised that companies must prove technical strength and financial capacity.
Eskom had previously announced plans to build 14,000 km of lines and expand transformers sixfold. Yet, analysts reported in late 2024 that Eskom delivered only 300 km annually, far below the required 2,500 km.
South Africa must act decisively. The country’s energy crisis will escalate unless the government and private investors unlock the grid capacity needed to power a renewable future.