South Africa Plans Grid Overhaul for Clean Power

Why this is here: Less than 15% of global clean-energy funding currently reaches emerging markets and developing economies, despite these regions holding over half the world’s population.

Loshni Naidoo of the Johannesburg Stock Exchange details South Africa’s plans to modernize its power grid and scale clean energy infrastructure. The country’s updated Integrated Resource Plan prioritizes grid infrastructure and flexible energy sources like batteries and quick-start plants. This comes as global reliance on fossil fuels increases costs and “greenflation” impacts renewable materials.

South Africa is piloting build-operate-transfer concessions to attract investment without straining the national budget. These concessions aim to clearly assign risks related to permits, currency fluctuations, and unforeseen events. The Philippines’ use of similar concessions for grid upgrades offers a relevant model.

Naidoo emphasizes the need for workforce development, particularly in grid maintenance, renewable energy management, and battery technology. Successfully transitioning to clean energy requires skilled workers and transparent financial agreements for investors, alongside addressing bottlenecks in mineral supply and project approvals. The work to improve systems through programs like Operation Vulindlela 2.0 and the Independent Transmission Programme continues.