DISCUSSION Report: FINANCE MODELS FOR SOUTH AFRICA’S GRID INFRASTRUCTURE

03 Oct 2024

On August 6, 2024, the Presidential Climate Commission (PCC) hosted a roundtable at the Johannesburg Stock Exchange (JSE) to address the pressing need for expanding and upgrading South Africa's electricity transmission infrastructure. This paper synthesizes the key conclusions from that event (noting that emergent recommendations are not recommendations of the PCC but rather outputs of a multistakeholder dialogue where agreement was extremely strong). This summary emphasizes the strategic priorities of increasing grid capacity, adopting innovative financing models, and addressing implementation challenges, all essential for securing South Africa’s most desirable energy future. The paper also highlights the importance of supporting the Transmission Development Plan (TDP), the value of piloting new models, and the potential need for an Independent Power Transmission (IPT) Office. Recommendations from expert participants span two timelines. The first is actions needed immediately that strengthen the NTCSA and grid investment, using JET PMU support. The second is a medium-term (2 to 3 year) regulatory reform that allows for a more systemic increased investment in the grid.