It is vital that South Africa’s transmission infrastructure be strengthened and bolstered, as the country pursues new renewable energy technologies and these are added into the mix, and as State-owned utility Eskom undertakes its unbundling.

This was a key message from a panel discussion during industry organisation the South African National Energy Association's 2022 conference.

It was noted that, while there were a few outstanding issues, the unbundling of Eskom into three entities looked set to be completed on schedule by the end of the 2022 calendar year.

Meanwhile, Eskom's Transmission Development Plan (TDP) was presented last month – outlining the investment and implementation plan for 2023 to 2032.

In terms of transmission, this iteration of the TDP indicates that transmission network infrastructure augmentation in areas with renewable energy resources is critical for South Africa to take advantage of the lowest cost of energy.

This means that significant transmission development is required in the northern, central and southern corridors of the country.

Network capacity constraints, especially in the Northern, Western and Eastern Cape regions are considered a significant challenge that requires network augmentation.

Also, the capital expenditure required to fund the new network infrastructure and refurbishment plans is expected to impact on Eskom’s balance sheet.

Further, deferments over the years were noted to have placed pressure on the transmission build programme, as well as on the sustainability of the supplier and construction industry.

As alluded to, the necessary investments into the transmission infrastructure will require significant capital.

It was mentioned during the discussion that transmission infrastructure was relatively safe from a risk point of view; therefore, opening this up to entities like pension funds would ensure full funding; however, this must be done to allow fair returns, it was emphasised.

It was also noted that grid availability was a fundamental element of determining preferred bidders for new projects, with delays in programmes to date largely because of a lack of adequate transmission capacity.

However, it was also mentioned that, while it was important to focus on the transmission side of things, there was also a significant backlog on the distribution side, which must not be forgotten.

Also, it was emphasised that it was not enough to pursue stabilising the country’s grid and tranmission systems alone. Rather, an approach should be made to stabilise grids on a regional level, and for interconnectedness between South Africa and its neighbours, This, it was posited, would engender mutual benefits, allowing for energy flows and trade and reducing energy deficits where they were.

In this vein, it was indicated that there were about 13 projects currently looking at interconnecting on a regional level in sub-Saharan Africa, at varying levels of development.

Once these were realised, this would contribute great benefits for South Africa and the region.