By:Engineeringnews

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 allows for the proper consideration and prioritisation to now 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, shows that government is moving in the right direction.

Scheppers said the NTCSA is now focused on preparing to implement the programmes that have been laid out and is 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 can be invested and how quickly rollout of infrastructure can occur.

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

Providing a private sector perspective, Hoosen also acknowledged the work government has done to mitigate the impact of the transmission infrastructure constraints. He pointed out that the ERA and the NTCSA provide opportunities to invite the private sector to collaborate with government to unlock transmission infrastructure, noting that the company has undertaken considerable work in this globally, and has 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 is 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 assets classes of infrastructure.

He noted that funders are familiar with investing in these asset classes and can 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 include 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 is tackled.

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

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