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NTCSA Invests $6.3 Billion to Strengthen Grid for Renewable Energy Growth

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The National Transmission Company South Africa (NTCSA) has committed R112 billion ($6.3 billion) to revamp the country’s transmission grid through its ambitious Transmission Development Programme (TDP). This significant investment aims to bring nearly 30,000 MW of utility-scale renewable energy online within the next five years, marking a major step forward in South Africa’s clean energy objectives.

During NTCSA’s official launch on October 7, 2024, Chairperson Priscillah Mabelane emphasized the urgency of this project, stating that close collaboration with the private sector would be crucial for its success. She noted that NTCSA recognizes the vital role of the private sector in ensuring that the 53,000 MW of needed capacity over the next decade comes online, underlining the importance of accelerating grid expansion to keep pace with the rapid growth of renewable energy.

At the core of NTCSA’s Transmission Development Programme is renewable energy. South Africa has seen a rise in independent power producers (IPPs), many focusing on renewable energy generation. However, these clean energy projects have faced challenges, particularly in distributing electricity across the country due to inadequate transmission infrastructure.

NTCSA aims to unlock the potential of wind, solar, and other green energy projects by investing in 30,000 MW of renewable energy capacity, set to be connected by 2029. This represents a significant leap in addressing South Africa’s energy crisis, with 11,000 MW of new capacity expected to come online by 2027.

Since starting operations on July 1, 2024, NTCSA has made grid expansion a top priority, recognizing the severe limitations of Eskom‘s current transmission infrastructure. NTCSA’s TDP outlines plans for a R390 billion ($22.1 billion) investment over the next decade, which includes the construction of 14,000 km of transmission lines to accommodate IPP projects and ensure that renewable energy reaches high-demand areas. NTCSA has already signed agreements with 19 private companies for transmission grid expansion projects, aiming to fast-track the infrastructure needed to facilitate the flow of renewable energy without hindrance.

The TDP also seeks to address the gap between electricity supply and demand, especially as South Africa moves away from its heavy reliance on coal. NTCSA’s goal in expanding transmission capacity is to fortify the national grid, support the country’s transition to renewable energy, and align with global climate change targets.

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Written by Grace Ashiru

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