Trystan Casey
South Africa's electricity transmission landscape is dominated by Eskom, a vertically integrated, state-owned power company that generates approximately 95% of the electricity used in the country and 45% of the electricity used in Africa. While South Africa has abundant resources for renewable energy generation, the nation's power system remains heavily reliant on fossil fuels, particularly coal, which accounted for about 85% of electricity production in 2023. However, the country is not immune to energy crises, with scheduled power outages and an ageing energy infrastructure. To address these challenges, South Africa is exploring initiatives to increase electricity generation through private sector investment in renewable sources, such as wind, solar, biomass, and hydropower.
| Characteristics | Values |
|---|---|
| Electricity production | Heat from burning fuels, nuclear reactions, wind, moving water, and solar energy |
| Primary sources | Coal, oil, and natural gas |
| Largest electricity producer | Eskom, a state-owned power company |
| Electricity production in 2023 | 188.0 TWh |
| Electricity consumption in 2023 | 3,200 kWh |
| Electricity consumption decrease from 2018-2023 | 2.5% per year |
| Electricity consumption decrease in 2023 | 4% |
| Electricity generated by coal-fired power stations | 42,000 MW (85%) |
| Electricity generated by renewables in 2018 | 6.6% |
| Target for renewable energy generation by 2030 | 20 GW |
| Target for electricity generation by 2030 | 77,834 MW |
| Electricity end-users | Industry (47%), residential sector (22%), services (18%) |
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What You'll Learn
South Africa's energy crisis
South Africa is facing a severe electricity crisis, with frequent and extended blackouts that can last up to 10 hours a day or even longer. This crisis is the result of a confluence of factors, including mismanagement, corruption, over-reliance on coal, and inadequate investment in alternative energy sources and infrastructure.
The country's energy sector is dominated by Eskom, a state-owned power utility that generates approximately 95% of electricity in South Africa and a substantial share of electricity on the African continent. Eskom has been plagued by allegations of corruption, mismanagement, and state capture, which have severely affected its ability to deliver consistent and reliable electricity. The utility has also accumulated massive debt, estimated at around 450 billion rands (about US$31 billion), limiting its ability to invest in infrastructure upgrades and modernisation.
South Africa's heavy reliance on coal-fired power plants, which account for up to 87% of electricity generation, has also contributed to the energy crisis. While coal has played a crucial role in meeting the country's energy demands, it has become a strain on the power supply due to its environmental impacts and limited diversification in the energy mix. The country aims to decommission 34 GW of coal-fired power capacity by 2050 and build at least 20 GW of renewable power generation capacity by 2030.
The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is a government initiative aimed at increasing electricity generation through private sector investment in renewable energy sources. Over 6,000 MW of generation capacity across various technologies, primarily wind and solar, have been granted to bidders through this program. However, insufficient investment in infrastructure has hindered the integration of renewable energy sources into the energy mix, and the pace of implementation needs to be accelerated to effectively alleviate the energy crisis.
The energy crisis in South Africa has had far-reaching impacts, reducing economic growth, increasing crime rates, and shaping the country's politics. It has also significantly affected the overall happiness of South Africans, with a 2022 study indicating the negative effects of repeated periods of load shedding. The government faces mounting pressure to address this decades-long crisis and ensure a reliable and sustainable energy supply for the country.
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The role of Eskom
Eskom is a vertically integrated, state-owned power company that generates, transmits, trades, and distributes electricity in South Africa. It produces approximately 95% of the electricity used in the country, which is about 42,000MW, and 45% of the electricity used in Africa. Eskom supplies power directly to about 45% of all end users in South Africa, with the remaining 55% being resold by redistributors, including municipalities.
Eskom transforms inputs from the natural environment—coal, nuclear, fuel, diesel, water, and wind—into energy. This energy is transmitted over Eskom's ~33,000km of the network, supplying over 86% of South Africa's needs and about 20% of the electricity produced in Africa. To balance electricity supply and demand in real time, Eskom's system operator must maintain the frequency of the power system at 50Hz.
Eskom is one of the few remaining vertically integrated utilities connected to the Southern African Power Pool (SAPP) through an interconnected grid, which helps support grid stability. It relies on SADC members to maintain sufficient and reliable transmission grids in their countries. Eskom also buys electricity from and sells electricity to the countries of the Southern African Development Community (SADC).
Eskom's core divisions—Generation, Transmission, and Distribution—rely on corporate support functions to operate effectively. Eskom Rotek Industries, a subsidiary, performs turbine and transformer repairs and provides specialised construction and transport services.
Eskom's main challenge is meeting the rising demand for power while ensuring economic growth. The company is also facing significant debt levels, with the South African government announcing plans in 2019 to unbundle Eskom into three separate entities responsible for generation, transmission, and distribution. Despite these challenges, Eskom plays a critical role in providing electricity to South Africa and supporting the country's economic development.
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The country's transition to renewable energy
South Africa has been taking steps to transition to renewable energy sources. The country is the world's seventh-largest coal producer and the 14th largest emitter of greenhouse gases. As such, it faces increasing pressure to curb its carbon footprint. In 2019, the South African government announced plans to restructure Eskom, the state-owned power company that generates approximately 95% of the electricity used in the country, into three separate entities responsible for generation, transmission, and distribution.
The Just Energy Transition Implementation Plan, launched in November 2023, is a roadmap for transitioning from coal-fired power to renewable energy sources by 2027. The plan aims to include all communities and workers affected by the transition and to create new employment opportunities, particularly in the renewable energy sector. South Africa has also introduced tax incentives and rebates for businesses investing in renewable energy infrastructure. The government has also provided debt relief to Eskom, allowing the company to invest in renewable energy projects and grid upgrades.
The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is another initiative by the South African government to increase electricity generation through private sector investment in solar, wind, small hydro, biomass, and biogas. Over 6,000MW of generation capacity has been granted to bidders through the programme, with a focus on wind and solar energy. The country also plans to build at least 20 GW of renewable power generation capacity by 2030.
South Africa is also working with the United Nations to develop frameworks for decentralized renewable energy systems to reduce emissions and enhance energy infrastructure. The UN is supporting South Africa's leadership in the G20 Energy Transitions Working Group and fostering financing, innovation, and technology transfer to support the transition to sustainable energy systems.
The transition to renewable energy in South Africa is being driven by the urgent need to reduce emissions and curb the country's carbon footprint. The country is taking steps to increase investment in renewable energy infrastructure, provide tax incentives, and develop the necessary frameworks to support the transition.
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The impact of coal-fired power plants
South Africa's electricity is primarily generated by Eskom, a vertically integrated, state-owned power company. Eskom generates approximately 95% of the electricity used in South Africa and 45% of the electricity used in Africa. The company operates a number of notable power stations, including Kendal Power Station and Koeberg nuclear power station in the Western Cape Province, the only nuclear power plant in Africa.
South Africa is the world's 7th largest coal producer, and coal-fired power stations generate approximately 85% of the nation's electricity. The burning of coal releases greenhouse gases, contributing to South Africa's position as the 14th largest emitter of greenhouse gases globally. In 2021, the country emitted 430 megatonnes of CO2, ahead of countries with larger economies such as Britain, Mexico, and Australia.
The health impacts of air pollution from coal-fired power plants are significant. Air pollution is the second leading cause of premature mortality in Africa, after AIDS. South Africa has several air pollution hotspots that do not meet national air quality standards or the WHO's health-based guidelines. Exposure to air pollution can lead to deaths and various long-term illnesses, impacting individuals and communities.
To address environmental and health concerns, the South African government has plans to decommission and repurpose coal-fired power plants, aiming to shut down seven such facilities by 2032. However, there are also proposals to delay decommissioning until after 2030 due to electricity shortages. The delayed decommissioning of these plants is estimated to have negative health and economic impacts, with potential increases in deaths and health costs.
Despite the push for decommissioning, coal will continue to provide the majority of South Africa's power for the next decade. The country has committed to a shift towards renewable energy sources, with plans to build at least 20 GW of renewable power generation capacity by 2030. South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) aims to increase electricity generation through private sector investment in renewable sources.
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The future of electricity transmission
South Africa's electricity transmission landscape is set to undergo significant changes in the coming years, driven by the need to transition from fossil fuels to renewable energy sources and address the challenges posed by an ageing infrastructure network.
Eskom, the vertically integrated, state-owned power company, has dominated the electricity sector in South Africa for decades, generating approximately 95% of the electricity used in the country. However, Eskom has faced financial troubles, with a debt of ZAR400.0 billion (USD21.8 billion) as of February 2023, raising questions about its long-term viability. In 2019, the South African government announced plans to restructure Eskom, separating it into three entities responsible for generation, transmission, and distribution, with the transmission business being legally separated and operated by the National Transmission Company South Africa (NTC) from July 2023.
The shift towards renewable energy sources is a key aspect of South Africa's energy future. The country aims to build at least 20 GW of renewable power generation capacity by 2030, with a focus on wind, solar, biomass, and small hydro projects. The Renewable Independent Power Producer Programme (REIPPP) plays a crucial role in this transition by encouraging private sector investment in renewable energy sources.
However, the success of this transition hinges on investments in long-distance power lines and improvements to the transmission infrastructure. Africa, including South Africa, has lagged in this regard, with insufficient transmission capacity hindering the ability to harness renewable energy sources effectively. Strengthening grid connections, particularly to resource-rich regions, and improving north-south transmission capacity are vital steps to support the integration of renewable energy into the grid.
The African Union's vision for an African Single Electricity Market by 2040 underscores the importance of regional integration in energy trading. South Africa's participation in the Southern African Power Pool and its trading of power with SADC member nations demonstrate the potential for cross-border electricity transmission.
In conclusion, the future of electricity transmission in South Africa is characterised by a move away from fossil fuels, the restructuring of Eskom, and a focus on integrating renewable energy sources into the grid. Addressing the gaps in transmission infrastructure will be crucial to realising the country's renewable energy goals and ensuring reliable power supply for its citizens.
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Frequently asked questions
South Africa generates electricity through coal-fired power stations, nuclear reactions, and renewable energy sources such as wind, solar, hydropower, and biomass.
Coal is the primary source of electricity generation in South Africa, with 85-88% of electricity produced from coal-fired power stations as of 2017. However, South Africa aims to shift towards renewable sources and has set targets for decommissioning coal-fired power plants and increasing renewable power generation capacity.
Eskom, a state-owned power company, is the largest producer of electricity in South Africa and Africa. It generates approximately 95% of South Africa's electricity and 45% of the electricity used in Africa. The South African government announced plans in 2019 to restructure Eskom into three separate entities responsible for generation, transmission, and distribution.
