NTCSA commits $6.3 billion to boost grid for renewable energy expansion

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October 9, 2024
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2 min read
NTCSA

The news:

  • The National Transmission Company South Africa (NTCSA) has committed R112 billion ($6.3 billion) to overhaul the country’s transmission grid through its ambitious Transmission Development Programme (TDP). 
  • This substantial investment is designed to bring nearly 30,000 MW of utility-scale renewable energy online within the next five years, significantly advancing South Africa’s clean energy goals.
  • During the NTCSA's official launch on October 7, 2024, Chairperson Priscillah Mabelane highlighted the urgency of this project, stating that close collaboration with the private sector would be essential for success. 

She said the NTCSA recognises the crucial role of the private sector in ensuring that the 53,000 MW of required capacity over the next decade comes online, reinforcing the need for accelerated grid expansion to support the rapid growth of renewable energy.

The heart of NTCSA’s Transmission Development Programme is renewable energy. South Africa has seen an increase in independent power producers (IPPs), many of whom specialise in renewable energy generation. 

However, these clean energy projects have faced significant challenges, particularly in distributing their electricity across the country due to inadequate transmission infrastructure.

NTCSA plans to unlock the potential of wind, solar, and other green energy projects by investing in 30,000 MW of renewable energy capacity, which will be connected by 2029. 

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This is a significant leap forward in addressing South Africa's energy crisis, especially as 11,000 MW of new capacity is expected to be online by 2027.

The NTCSA, which started operations on July 1, 2024, has since made grid expansion a top priority. Eskom's current transmission infrastructure is severely constrained. 

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Recognising these grid limitations, NTCSA's TDP outlines plans for an R390 billion ($22.1 billion) investment over the next decade. 

The programme will construct 14,000 km of transmission lines to accommodate IPP projects and distribute their renewable energy to high-demand areas. 

The company has already signed agreements with 19 private companies for transmission grid expansion projects. Through these partnerships, NTCSA hopes to fast-track the necessary infrastructure to ensure renewable energy generation can flow to areas of demand without hindrance.

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Moreover, the TDP is designed to bridge the gap between electricity supply and demand, especially as South Africa shifts away from its over-reliance on coal. 

NTCSA's goal in expanding transmission capacity is to strengthen the national grid, support the country's transition to renewable energy, and align with global climate change targets.

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