By Jenna Harris, MD, Apollo Africa
THE energy landscape in South Africa is undergoing a seismic shift, which presents challenges and remarkable opportunities for our country and the Southern African region.
The recent launch of the National Transmission Company of South Africa (NTCSA) and the unbundling of Eskom’s transmission business, mark the start of an energy transformation that could position South Africa as a major energy exporter within the Southern African Power Pool (SAPP).
The creation of the NTCSA represents a critical energy sector reform, providing open, fair, and transparent access to the national grid for both public and private energy producers.
This will enhance efficiency within the electricity sector and foster competition in a future electricity market.
But perhaps more importantly, it opens the door to new opportunities for South Africa to export energy across borders, generating significant economic benefits and strengthening regional energy security.
South Africa is uniquely positioned to become the “power basket” for Southern Africa, exporting electricity to neighbouring countries while earning valuable foreign exchange.
Our nation boasts a relatively stable investment environment, with banks and private sector investors increasingly willing to back new energy projects.
By leveraging these favourable investment conditions, South Africa can rapidly expand its generation capacity, whether through wind, solar, or other forms of renewable energy.
We’re already connected to the Southern African Power Pool, which facilitates energy trading between countries in the region.
A regional power ecosystem
The NTCSA’s mandate to establish a transparent trading platform and an independent Transmission System Operator (TSO) will be crucial in realising this vision.
The transition to a competitive electricity market will not only attract more participants but also create a more dynamic and resilient energy system across the region.
The larger the number of players in the market, the more effectively we can balance supply and demand, ensuring that power is available when and where it is needed most.
A call for collaboration
To realise this vision, we need to rethink Eskom’s role. Rather than trying to protect its monopoly on energy generation and transmission, Eskom should focus on building and maintaining a world-class grid that can accommodate multiple energy producers and facilitate cross-border energy trade.
By working together, government, private sector, and regional partners can create a more resilient and sustainable energy system that benefits everyone.
The benefits are clear: by becoming a key energy exporter within the Southern African Power Pool, South Africa can boost its economy, strengthen regional ties, and help secure a more sustainable energy future for all.
We finally have a proper chance to seize this opportunity and together, build a brighter, more energy-secure future for South Africa and the Southern African region.
