More than R390 billion will be required over the next decade to meet the demand for grid capacity due to an increase in renewable energy projects for more energy generation, the Ministry of Electricity in the Presidency, Kgosientsho Ramokgopa, has said.
This comes as Ramokgopa is currently finalising a Cabinet submission on transmission financing pathways aimed at fast-tracking transmission infrastructure investments to support the anticipated growth in generation capacity.
He was replying to DA MP Ghaleb Cachalia, who enquired about the scope of the planned upgrades to the transmission grid infrastructure amid his comments that the country could potentially face a grid collapse if efforts were not directed towards developing Eskom’s transmission capacity.
Cachalia said conservative estimates showed that the country needed to invest close to R254 billion in new grid capacity.
“What investment instruments and/or vehicles has the government put in place to incentivise private sector participation in grid expansion?” he asked.
In his written reply, Ramakgopa said Eskom Transmission publishes a transmission development plan (TDP) every year looking 10 years ahead.
“It identifies infrastructure required to keep abreast of load growth, comply with reliability/redundancy requirements, meet new generation integration requirements, and replace assets that are at end of life,” he said.
Eskom identified 1 009 projects requiring development and execution in 2022.
These comprised 207 expansion category projects and 802 refurbishment projects during the period, he added.
“The identified scope in TDP2022 broadly involves building 14 218km of power lines and 122 669 megavolt-amperes of transformation.”
According to Ramakgopa the planned infrastructure would be built in all provinces with the bulk being in provinces such as the Northern Cape, that have the greatest potential for renewable energy power plants.
“It is estimated that more than R390 billion will be required over the next decade to meet the demand for grid capacity, largely due to the increase in generation capacity through renewable energy projects following the various bid windows.
“Eskom’s current financial position places significant limitations on its ability to attract sufficient capital towards expanding the transmission grid, with the delivery of transmission infrastructure taking, on average, between seven to 10 years.”
Ramakgopa also said it was estimated the delivery rate needed to be scaled-up by eight times to connect the energy generation required for energy security by 2030.
“It is anticipated that the transmission grid build rate needs to increase from 300km to 2 300km per year with a greater rate of investment and delivery required through to 2050.”
In line with their plans, he stated that his ministry recently co-hosted a transmission financing seminar with the Johannesburg Stock Exchange.
Cape Times
