Ramokgopa Explains Delays in Eskom’s Transmission Company Unbundling

Johannesburg – September 2025

Electricity Minister Kgosientsho Ramokgopa has confirmed that the National Transmission Company (NTC), which is meant to operate independently from Eskom, will remain a subsidiary for at least another 8–12 months.

The delay comes as South Africa struggles to reform its power sector, unlock renewable energy projects, and reassure investors about the country’s long-term energy stability.

READ: NERSA Error Forces Steeper Electricity Price Hikes for South Africans in 2026 and 2027

Why the Unbundling Is Delayed

Ramokgopa outlined three key reasons slowing down the full independence of the NTC:

• Global CEO Search: Efforts to appoint a suitable candidate to lead the entity have so far failed.
• Legacy Systems: Eskom’s aging infrastructure makes technical and operational separation more complex.
• Investor Jitters: Independent Power Producers (IPPs) are waiting for clear rules on grid access before committing further investment.

The minister said that although the delay is frustrating, it is necessary to ensure that “the transmission system is fit for Africa’s just transition.”

READ: NMB Cracks Down on Rich Electricity Thieves: Guest Houses Caught in R7.5bn Debt Scandal

Renewables Bottleneck

South Africa’s clean energy transition is facing serious hurdles. At least 5,000MW of approved solar and wind projects remain stalled due to:

• Limited grid capacity in the resource-rich Northern Cape.
• Absence of clear wheeling agreements that allow power to move across the grid.
• A governance vacuum within the transitional NTC structure.

These bottlenecks mean that even though projects are ready to break ground, they cannot connect to the national grid — leaving South Africa with one of the world’s most pressing renewable energy backlogs.

Lessons From Other Countries

South Africa is not the first nation to unbundle its energy sector. A global comparison shows what is at stake:

CountryYear of UnbundlingRenewables GrowthIndia2015Added 72GW solar capacity since reformBrazil1999Now produces 84% of its electricity from clean energySouth Africa2026 (projected)6GW renewables backlog remains

Analysts argue that delays risk leaving South Africa behind its peers at a time when global investment in renewable energy is accelerating.

READ: South Africa's Electricity Price Crisis: Unpacking the Root Causes and Path Forward

The Road Ahead

Ramokgopa defended the slower pace, saying the government wants to avoid a rushed process that could jeopardize future energy security.

“We are building a transmission system fit for Africa’s just transition,” he insisted.

While the NTC is expected to be fully independent by 2026, industry experts warn that further delays could increase investor uncertainty, slow down renewable energy integration, and prolong South Africa’s dependence on coal-fired power stations.

For now, all eyes remain on the government’s ability to finalize leadership appointments, modernize Eskom’s grid infrastructure, and provide clarity for renewable energy developers eager to plug into the system.