South Africa to tap into BRICS connection to improve energy grid
Fellow BRICS nations say clear policies governing the energy sector and public and private investment are the key features that could assist South Africa in developing its electricity grid.
Representatives from BRICS countries shared their countries’ grid development strategies at the New Development Bank’s (NDB) Ninth Annual Meeting of the Board of Governors held in Cape Town on 31 August under the theme ‘Investing in a Sustainable Future’.
Bernard Magoro, Head of the Independent Power Producers Office (IPPO), said the grid’s capacity is the biggest challenge South Africa faces in the energy sector.
“It is important for us to tap into what could work in South Africa. We need to build 14,000km of transmission infrastructure by 2032. We have to continue this conversation.”
He said other BRICS member countries face or have faced similar challenges.
Magoro said that for Brazil’s energy sector, “reform is not an event… it is a process.”
He said South Africa, through the Electricity Regulation Amendment Act, has started on this journey.
“This process has to continue. The market has limits when it comes to security of supply.
“Given the recent developments with ERA, what we need urgently is regulatory rules… how we are going to implement this law and how we are going to liberalise the market.”
Crucially, the security of supply must not be compromised and “we need to make sure marginalised people are not left behind.”
China’s grid management system
Pan Yuehui of the State Grid Corporation of China said investment has given the country grid security.
He said the country’s smart grid has played “a great role” in online monitoring, automation, and intelligent grid dispatch.
Yuehui said China needed an electricity storage system, and the country “invested heavily in pumped storage plants, which brought us stability.”
Regarding a centralised system, he said China has an integrated despatch centre to manage cross-region electricity allocation.
“The centralised system helps in the distribution and management of renewable energy output.
“[Also] China’s robust legislation of the sector imposes strict structures and standards for grid-tied renewable energy sources. Each country has different conditions, and we all have expertise to share.”
Public-private balance for Brazil
Mauricio Tolmasquim from Petrobras, Brazil, said the energy sector needs a healthy combination of market and government investment.
“You need both. Market for investment and government for regulations. Brazil created an institution for energy planning.”
He said it was imperative to find a balance that was fair for the investor and consumer.
Tolmasquim stressed the need for synchronicity between generation and transmission. “You have to see what can work for your country. Take into account the experience of the others, keeping in mind your case.”
Private procurement key to India’s energy sector
Srikant Nagulapalli, from the Ministry of Power in India, said competitive procurement in the transmission sector is also key.
He said awarding the private sector energy projects will decrease delivery times and can cut down costs.
Andrey Kataev, from the Unified Energy System in Russia, said South Africa needs to turn to gas and nuclear energy if it wants to increase generation.
Dr Adnan AlHosani, Director of Electricity and Energy Trade, UAE, said that while policies should cover why the project is being built and for whom, “it has to take the private sector into consideration.”
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South Africa to learn from fellow BRICS countries
At the event, Tourism Minister Patricia de Lille, on behalf of Electricity and Energy Minister Kgosientsho Ramokgopa, said South Africa “recognises the immense potential of deepening our partnerships within BRICS countries, particularly in the energy sector.”
“South Africa is keen to learn from and collaborate with BRICS partners in developing renewable energy technologies. Countries like Brazil, China and India have set global benchmarks in solar and wind energy.
“We will explore advancements in nuclear energy, leveraging the expertise of BRICS countries with cutting-edge technology.
“South Africa sees great value in learning from Brazil and India’s successful Independent Transmission Projects, which have enhanced grid reliability and expanded access to remote areas.
“By integrating these lessons into our projects, South Africa can reach its energy infrastructure by introducing speed, scale, and agility into the development of transmission infrastructure.”
De Lille said grid capacity has fallen short of what is required for further generation capacity, as detailed in the Integrated Resource Plan 2019.
Eskom grid challenges
Based on Eskom’s Transmission Development Plan (TDP), 53GW is expected to require a connection to the grid by 2032, which in turn requires 14,000km of new transmission lines.
“There is a disjuncture between the location of conditions for the best wind and solar and electricity demand, necessitating an urgent need for the accelerated expansion of the national grid,” said De Lille.
“Eskom’s current financial position significantly limits its ability to attract sufficient capital to expand transmission infrastructure, with the delivery rate taking, on average, between 7 and 10 years.
“This delivery rate needs to scale by eight times to connect the energy generation required for energy security by 2030.” ESI
Vally Padayachee, the Strategic Advisor to the Association of Municipal Electricity Utilities (AMEU), says the country must move from an energy KWh model to a grid services model.
FAQs about grid capacity in South Africa
Is the grid capacity the same as the generational capacity?
Generation capacity is how much electricity the power stations can generate. Grid capacity is how much power the system can reliably deliver.
What are Eskom’s interim grid capacity allocation rules?
The grid capacity allocation rules are designed to reflect the principles of non-discriminatory and open access to the grid in South Africa.
Where do load curtailment and loadshedding interplay with the grid?
Load curtailment is a practice that Eskom uses wherein large power users are directly asked to reduce their power usage. Loadshedding is the rotational outage of electricity supply.
Who is in charge of the grid in South Africa?
Once the Electricity Regulation Amendment Bill is enacted, the National Transmission Company of South Africa (NTCSA) will own and operate the country’s national transmission system, the System Operator, the grid strengthening function, energy market services and the International Trader. Currently, distribution grids mostly fall under either Eskom or local municipalities.