Grid Constraints Threaten Africa’s Renewable Energy Momentum

Africa’s renewable energy sector continues to attract significant investment, but transmission infrastructure is increasingly becoming the industry’s biggest obstacle. While utility-scale solar and wind projects are advancing across the continent, limited grid capacity is preventing many developments from reaching commercial operation.

These challenges dominated discussions at the Webber Wentzel Power Breakfast, where industry leaders examined how transmission bottlenecks are slowing the pace of the energy transition.

South Africa provides a clear example of the problem. According to the 2025 Generation Connection Capacity Assessment, the Cape Corridor—covering the Northern, Western and Eastern Cape provinces, home to the country’s strongest renewable energy resources—has no conventional grid connection capacity remaining without curtailment. As a result, developers face growing delays despite strong investor interest.

Beyond infrastructure, stakeholders argue that governance arrangements are also restricting market progress. SOLA Group Chief Executive Dom Wills called for South Africa’s Grid Access Unit (GAU) to be moved from Eskom Holdings to the National Transmission Company South Africa (NTCSA). Although the NTCSA operates the transmission network, the GAU remains within Eskom, which also competes with independent power producers through its generation business.

Industry participants believe an independent grid access authority would improve transparency and remove perceived conflicts of interest. Developers have also criticised the absence of a public connection queue, leaving projects with limited visibility over application progress.

Questions were raised over whether Eskom Green, the utility’s renewable energy business, could benefit from preferential access to the grid. The company rejected those claims, stating that all connection decisions are governed independently by the NTCSA. However, Eskom Green does benefit from owning land adjacent to existing substations at retiring coal-fired power stations, allowing renewable projects to utilise existing infrastructure more efficiently.

Meanwhile, South Africa’s electricity market reforms continue to progress. The Electricity Regulation Amendment Act provides the framework for an independent transmission system operator and a competitive wholesale electricity market. However, transmission expansion remains behind schedule, raising concerns that infrastructure delivery is not keeping pace with renewable energy investment.

Private sector momentum remains strong. Nearly 4.7 GW of privately contracted projects reached financial close between 2023 and 2025, while a further 18 GW is under development.

For investors and developers, the opportunity remains substantial. However, the industry’s next phase of growth will depend less on building new renewable generation than on expanding transmission infrastructure, improving grid access and accelerating market reform. Without faster execution, transmission constraints risk becoming the greatest barrier to Africa’s clean energy transition.