Eskom's grid build is too slow. It's time for private sector action - report

The incremental rate at which Eskom plans to expand the electricity grid will not meet the country's energy needs, and SA would be well-advised to form partnerships with private companies to build transmission lines in return for revenue flows, says a new study financed by the non-profit Africa Climate Foundation. 

The study, undertaken by two consultancies - Meridian Economics and Krutham - recommends two models that could be drawn upon and advises policymakers on the policy and regulatory frameworks required to make them possible. However, the study warns that for the models to be workable, Eskom and energy regulator Nersa will have to reform tariffs, which are inappropriately geographically structured and currently too low to compensate for the investment costs.

Says Krutham lead on the Just Energy Transition, Peter Attard-Montalto: