Electricity Minister Dr Kgosientsho Ramokgopa has emphasized the urgent need for South Africa to strengthen and expand its transmission grid to address the ongoing load shedding crisis. He argues that the failure of the government to respond promptly to the need for new generation capacity has contributed to the crisis. Ramokgopa warns against delaying action on grid investment, stating that similar mistakes should not be made as with generation capacity.

While the supply-demand imbalance in generation is showing signs of stabilizing, the lack of grid infrastructure, especially in wind- and solar-rich regions, poses a significant risk to future energy security. The inability of renewables plants to connect to the grid was evident during the recent bid window for public renewables procurement, where grid over-subscription prevented the selection of onshore wind projects.

Ramokgopa emphasizes that transmission challenges must be addressed promptly and not postponed for the future. He acknowledges that inadequate investment in the grid is not due to poor planning, as Eskom has developed a credible Transmission Development Plan. The financing challenge is the primary obstacle, with restrictions on Eskom's borrowing capacity. Innovative approaches are required to overcome the funding issue, and a report is being finalized to explore ways of tapping private sector liquidity without compromising grid ownership or management responsibility.

The Minister confirms that he will meet with private wind and solar developers to understand their concerns regarding Eskom's Interim Grid Capacity Allocation Rules. These rules prioritize shovel-ready projects to ensure fair distribution of grid resources, but various stakeholders in the wind and solar sectors have raised concerns about the rules' onerous nature. The Minister plans to address these concerns and seek input from industry players in the coming weeks.

Ramokgopa assures that the report on grid financing options is in an advanced stage and will be shared after necessary approvals. He hints at the assessment of different build, operate, and transfer models to find innovative solutions.

Overall, the Minister emphasizes the need for immediate attention to transmission grid strengthening, highlighting the financing challenge and the importance of collaboration with the private sector to overcome this hurdle.