‘We can’t repeat the same mistakes’: Ramokgopa calls on private sector for transmission expansion

Electricity minister Kgosientsho Ramokgopa has called on the private sector to assist with expanding the national grid.

According to Ramokgopa, Eskom’s transmission expansion and strengthening require a “considerable amount of resources” that requires government and the private sector to work together.

“We don’t want to repeat the same mistakes that have been committed on the generation side, where we kicked the can down the road, and we just thought that the private sector on its own will come into the space and resolve the issues of generation capacity constraints,” Ramokgopa said. 

The minister was briefing media on the progress of the Energy Action Plan on Tuesday. 

Eskom’s balance sheet is constrained

He said government was exploring other opportunities because Eskom’s balance sheet was constrained. 

“We are looking to tap into the liquidity that is available from the private sector to allow us an opportunity to expand the grid, so we are able to accommodate the renewable energy solutions that have been rolled out in the country, and a number of them have not been connected to the grid as a result of the constraint on the transmission side,” Ramokgopa said. 

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“The transmission expansion and strengthening exercise will require a considerable amount of resources and we know that the Eskom’s balance sheet is constrained, and we know that the sovereign matrix has deteriorated, so we must explore opportunities for the country to tap into the liquidity that is sitting with the private sector.”

Attract more investment

Ramokgopa said government was doing its best to rope in the private sector, saying the partnership would attract more investment in transmission.

“What we know is the state must be a very active participant in that space and that’s why we are doing everything possible to create those conditions. For us to create those conditions, it is necessary upfront, to have an appreciation and understanding from the private sector what are some of those [conditions] that in their own view will make it possible for them to be able to finance,” he said.

Lower stages of load shedding

Ramokgopa said electricity capacity improved between September 18 to 22, resulting in lower stages of load shedding.

He said the improved capacity came on the back of some of the units that were taken offline for planned maintenance at the beginning of the month after the winter season before returning online.

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“On average, it reached about 29,664 MW over that period. We saw that it peaked on September 19, and we were able to bridge the 30,000 MW,” said the minister. 

“This is on the back of the unit, some of the units that were on planned maintenance returning and we have that there has been some level of improvement on the capacity available and that made it possible for Eskom to revise downwards the intensity of load shedding … We also saw that the periods of the day, in the week that was where load shedding was even suspended and it also allowed us an opportunity to go into the long weekend period,” said Ramokgopa.