The pertinent issue within this sector is how to enable a Just Energy Transition at a multi-level transmission and distribution level across South Africa. While generation is a matter of transition (from fossil fuel to renewables and hybrids to arrive at a low carbon economy transition), the grid connection challenge remains a real threat (less on the cost, and more on the FEL process to implementation).

There is also an unspoken risk when the distribution from a national generator and/or Independent Power Producer needs to be managed by a metropolitan or local municipality. Mechanisms such as Public Private Partnerships (PPPs) are easily cited but rarely, if ever, a reality because the regulatory and commercial aspects are complex. The associated permitting to “legalise” the infrastructure and operational aspects is costly and takes several years which adds to the pressure in terms of meeting South Africa’s Nationally Determined Contribution (NDC) commitments.