Policy reforms and deregulation have accelerated the liberalisation of South Africa’s energy market – the relaxation of generation licensing by the National Energy Regulator for South Africa (NERSA) has spurred private participation and growth in renewable energy. However, grid constraints in the Northern Cape, Western Cape and Eastern Cape limit new connections. Eskom’s Transmission Development Plan commits ZAR440 billion to expansion through to 2030, after which public–private partnerships will be critical.

This document highlights the key challenges which the South African grid faces and the opportunities for investors in its reform over the next decade.