Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » Why South Africa struggles to end load shedding

    Why South Africa struggles to end load shedding

    A government monopoly in the generation, transmission, distribution and sale of electricity is highly inefficient.
    By Eustace Davie30 January 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Worldwide experience has revealed that a government-owned vertical monopoly in the generation, transmission, distribution and sale of electricity is the most inefficient arrangement for attaining the lowest-cost and most reliable delivery to consumers.

    Many countries have thus set out to remedy the deficiencies by changing their electricity distribution and generation structures. The South African government, which inherited an electricity monopoly from its pre-democracy predecessor, did not embark on urgently needed reform to bring the country’s electricity system into line with modern experience.

    The state-owned enterprise Eskom now probably embodies a case study of everything that should not be done if a government wishes to achieve the best electricity results for its citizens. South Africa’s experience with its electricity delivery systems has demonstrated that such systems should be planned and developed with great care. Experience has shown electricity generation and delivery systems should not be undertaken by teams under the control of government officials.

    The transmission grid should be owned and managed by an experienced independent grid management company

    To remove potential conflict between Eskom and the entry of independent power producers (IPPs), the transmission grid should be owned and managed by an experienced independent grid management company.

    The UK government sold its transmission grid to the National Power Company, subject to price and other regulation by Ofgem to solve this problem. In 2009, the EU issued a directive to member countries that reads: “Without effective separation of networks from activities of generation and supply (effective unbundling), there is an inherent risk of discrimination, not only in the operation of the network but also in the incentives for vertically integrated undertakings to invest adequately in their networks.”

    A longer-term Southern African objective could include connecting all IPPs in Southern Africa to a common grid that eventually covers all sub-Saharan grids, which would link with the South African and sub-Saharan grids as they extend northwards.

    Learn from the NERC

    As this process occurs it would appear from the American experience and the growth of production in the southern areas of Africa, that a good case can be made for the establishment of a competent organisation, similar to the North American Electricity Reliability Corporation (NERC), to monitor the additions to the African grids to ensure reliability and security.

    The NERC is a not-for-profit international regulatory authority whose mission is to assure the effective reduction of risks to the reliability and security of the grid. It develops and enforces reliability standards and annually assesses seasonal and long‐term reliability. It monitors the bulk power system through system awareness, and educates, trains and certifies industry personnel.

    Read: Eskom in dire straits

    The NERC’s area of responsibility spans US, Canada and the northern portion of Baja California in Mexico. It is the electric reliability organisation for North America, subject to oversight by the federal energy regulatory commission and governmental authorities in Canada. NERC’s area of authority therefore includes owners and operators of the bulk power system, which serves nearly 400 million people.

    Details were recently revealed of plans to create a grid that would incorporate the following 12 sub-Saharan countries: South Africa, Mozambique, Burundi, Tanzania, Kenya, Uganda, Ethiopia, Sudan, Chad, Nigeria, Malawi and Niger. The team of electricity economists that conducted the cost calculations for this large African project were from China, Turkey and Nigeria.

    The plans are in the initial stages, but all aspects of the feasibility of the project have apparently been confirmed in principle. Should the project be adopted and confirmed, South Africa will have to conduct much groundwork.

    Participation in such a project may be just what Eskom needs to bring it out of the load-shedding malaise into which the SOE has fallen. A substantial change in the management of Eskom would be inevitable.

    In the longer term, if the building of the envisaged power grid is completed successfully and in good time, the integrated grids would transform the economies of the entire sub-Saharan Africa.

    • The author, Eustace Davie, is a director of the Free Market Foundation and author of Unchain the Child

    Get breaking news alerts from TechCentral on WhatsApp



    Eskom Eustace Davie Free Market Foundation
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWatch out, Apple! Patent wars come to smartwatches
    Next Article Surprising strength in South Africa’s IT services market

    Related Posts

    World Bank set to back South Africa’s big energy grid roll-out

    20 June 2025

    The little-known company disrupting Eskom’s monopoly

    16 June 2025

    Coal to cash: South Africa gets major boost for energy shift

    13 June 2025
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.