The newly launched National Transmission Company South Africa (NTCSA) has set its sights on accelerating the rollout of its Transmission Development Plan (TDP) as a core strategic objective. This follows the company's formal launch at Eskom’s Megawatt Park in Sandton on Monday, October 7.

A critical element of the NTCSA’s future is its operational and legal independence from Eskom. The company began trading as an independent subsidiary of Eskom on July 1. “The NTCSA is mandated to serve as an independent transmission system operator (TSO). This new role is not only a regulatory requirement but also an essential component of South Africa’s journey towards a competitive and sustainable electricity market,” said Segomoco Scheppers, Interim CEO of the NTCSA.

“The mandate is about building a truly autonomous organisation. Over the next few years, we will establish our own governance structures, secure dedicated systems and develop the operational capacity to stand on our own feet. We are preparing for our full transition to an independent TSO.”

Achieving full independence will allow the NTCSA to focus exclusively on its core mandate – maintaining the stability of the transmission grid and managing electricity flows – while fostering an inclusive electricity market in line with the Electricity Regulation Amendment Act, Scheppers said. Its strategic objectives include transmission infrastructure expansion, an inclusive and competitive electricity market, financial sustainability and digital transformation, he added.

30 GW over five years

One of the NTCSA’s immediate priorities is the TDP, which will drive expansion of the country’s transmission network. “The TDP is at the heart of ensuring a reliable and sustainable transmission network that can support South Africa's future energy needs,” said Scheppers.

The plan includes constructing nearly 14 000 km of new transmission lines and installing 122 000 MVA of new transformer capacity over the next decade, said Minister of Electricity and Energy Kgosientsho Ramokgopa. “We are targeting about 30 GW in the next five years. Over 10 years, the ambition could be about 53 GW.”

Bottlenecks in the energy grid are presenting a challenge: while IPPs are generating renewable energy, inadequate transmission infrastructure prevents efficient distribution. “There’s about 10 000 MW or so that remains trapped because we are not in a position to evacuate those electrons. That’s why the work of the NTCSA is going to be important for us to restore the credibility of the public procurement of renewable energy sources,” Ramokgopa said.

To accelerate the rollout of the TDP, the NTCSA plans to adopt a hybrid delivery model that leverages private-sector capacity. “We will work with stakeholders, including government and the private sector, to develop a hybrid delivery model that increases NTCSA’s capacity to deliver by re-leveraging private-sector capacity while not encumbering our balance sheet or the fiscus,” said Scheppers.

Private-sector engagement will be vital for the NTCSA’s success, particularly through engineering, procurement and construction (EPC) contracts. Scheppers noted the NTCSA has already made strides in this area, signing 19 long-term agreements with local EPC companies for transmission lines.

As part of its regulatory mandate, the NTCSA will facilitate establishment of a competitive electricity market, which will allow generators, consumers, traders and retailers to participate in power trading. “The NTCSA plays a key role in connecting the Southern Africa Power Pool, enabling the region to unlock its economic competitiveness by liberating its abundance of minerals and renewable endowments, such as hydro, providing affordable electricity access and supporting the decarbonisation ambition of the region,” said Priscillah Mabelane, Chairperson of the NTCSA board.