Question NW3195 to the Minister in The Presidency for Electricity
30 October 2023 - NW3195
Cachalia, Mr G K to ask the Minister in The Presidency for Electricity
(1) In light of his comments that the Republic could potentially face a grid collapse if efforts are not directed towards developing Eskom’s transmission capacity (details furnished), what is the scope of the planned upgrades to the transmission grid infrastructure, in terms of potential new grid network distribution; (2) with reference to the conservative estimates that show that the country needs 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? NW4268E
Reply:
1. According to regulatory requirements, Eskom Transmission publishes a Transmission Development Plan (TDP) every year, looking 10 years ahead. It identifies infrastructure required to (i) keep abreast of load growth, (ii) comply with reliability/redundancy requirements, (iii) meet new generation integration requirements, and (iv) replace assets that are at end of life.
In the TDP2022, Eskom identified 1 009 projects requiring development and execution. This comprises 207 expansion category projects and 802 refurbishment projects over this period. The identified scope in TDP2022 broadly involves building 14,218 km of powerlines and 122,669 MVA of transformation.
This infrastructure will be built in all provinces around the country, with the bulk being in provinces such as the Northern Cape, that have the greatest potential for renewable energy power plants
2. 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 7 to 10 years. It is estimated this delivery rate needs 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 2300km per year with a greater rate of investment and delivery required through to 2050 (Centre for Sustainability Transitions, 2023).
The Ministry in the Presidency for Electricity co-hosted a Transmission Financing Seminar with the Johannesburg Stock Exchange and 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 and secure long-term energy security.