South Africa is about two decades behind in implementing its transmission expansion plans, leaving its energy grid under mounting pressure, owing to ageing infrastructure, transmission constraints and a growing demand for stable power supply across key industries, says power solutions supplier Aggreko Energy Services sales head Johan Helberg. This shortfall has severely limited the effective integration of independent power producers (IPPs) and alternative energy sources, which he says has further exacerbated grid instability.
South Africa is set to undergo a significant transformation in its electricity market with the introduction of the South African Wholesale Electricity Market (SAWEM), which aims to establish a transparent, non-discriminatory, multi-market trading platform that is expected to enhance energy security, attract private investment and improve efficiency in electricity trading. According to law firm Bowmans partner Alexandra Felekis, the foundation for SAWEM was laid with the issuance of the Draft Market Code by the National Transmission Company South Africa in April 2024.
Industrial clean energy projects specialist Energy Group is focusing on the development of battery energy storage system (BESS) solutions to address grid instability and arbitrage opportunities in South Africa. With increasing pressure on the national grid, owing to frequent loadshedding and the growing integration of renewable energy, BESS is seen as a crucial component in stabilising the grid, says Energy Group senior manager Jason Fairhurst.
State-owned power utility Eskom’s ambitious plan to expand South Africa’s transmission network, which includes the roll-out of 14 000 km of new power lines over the next decade, is expected to create significant opportunities for local suppliers, such as JSE-listed Reunert, to support the project. With a strong track record, technical expertise and black economic empowerment credentials, the company played a key role in Eskom’s last major transmission roll-out in the 2000s and expects to be a key supplier again.
South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the growth of its commercial and industrial renewable energy space is a good blueprint for the development of projects in the rest of Africa. “There are phenomenal opportunities for growth in the African market. There are many areas in sub-Saharan Africa that lack access to electricity and present a substantial opportunity for renewable energy to fill that void,” says independent power producer (IPP) Pele Green Energy (PGE) senior project developer Anesu Gwata.