Eskom says it will “fully support” the establishment of a fully independent state-owned transmission (TSO) announced by President Cyril Ramaphosa during his State of the Nation Address (Sona).
Energy
During his Sona on Thursday, Ramaphosa directed that the establishment of the TSO entity, which will have ownership and control of transmission assets and be responsible for operating the electricity market.
“By 2030, more than 40% of our energy supply will come from cheap, clean, renewable energy sources. We are establishing a level playing field for competition, so that we are never again exposed to the risk of relying on a single supplier to meet our energy needs,” he said.
“We are restructuring Eskom and establishing a fully independent state-owned transmission entity. This entity will have ownership and control of transmission assets and be responsible for operating the electricity market.”
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TSO
This week, ahead of his Sona, business organisations including Business Unity SA (Busa) and Business Leadership South Africa (BLSA) wrote to Ramaphosa saying that an independent National Transmission Company is essential to the country’s energy future.
Three years ago, when the country was experiencing excessive load shedding, the government established the National Energy Crisis Committee to enable a focused national response to end the daily power cuts.
“Given the importance of this restructuring for the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address various issues relating to the restructuring process, including clear timeframes for its phased implementation. It will report to me within three months,” Ramaphosa said.
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Projects
Ramaphosa further stated that in 2026, the government will also commence the first round of independent transmission projects to enable private investment in expanding the national grid.
“We will work in each province to address transformer overloading, illegal connections and equipment failure with the objective of eradicating load reduction by next year.
“We are committed to the path that we have embarked on to modernise our energy system,” Ramaphosa said.
Cost
In April last year, The Citizen reported that, according to the National Transmission Company of South Africa, the country needed about 14,000 km of new transmission lines at a cost of about R440 billion.
Minister of Electricity Kgosientsho Ramokgopa, at the time, said neither the state nor Eskom had the financial capacity to fund this expansion independently.
Kgosientsho Ramokgopa announced the initiative, describing it as a “step change” in addressing the nation’s ongoing energy challenges.
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