South Africa Energises First IPP-Built Main Transmission Substation
South Africa Energises First IPP-Built Main Transmission Substation: A Major Milestone in Renewable Energy Push
Northern Cape, South Africa — April 8, 2025 >> Read more: Business News
South Africa has reached a significant milestone in its transition towards a more sustainable energy future, with the energisation of the country’s first Independent Power Producer (IPP)-built Main Transmission Substation. Located in the Northern Cape, the substation is part of broader efforts to decentralise power generation and ease pressure on Eskom’s overstretched infrastructure.
The substation, developed as part of the Koruson Main Transmission Substation project, was constructed and commissioned by Hyosung Heavy Industries in collaboration with the Department of Mineral Resources and Energy (DMRE) and the Independent Power Producer Office. It now forms a critical hub for renewable energy flowing from the Northern Cape’s rapidly expanding solar and wind energy projects.
A Landmark for Energy Security
This project marks the first time an IPP has delivered a main transmission substation to state utility Eskom—a step that Energy Minister Gwede Mantashe hailed as a “new era of public-private partnership in national infrastructure.” The substation will enable the integration of over 1,500 MW of clean energy into the national grid, enough to power more than a million homes.
“This is not just about infrastructure,” Mantashe said at the launch. “It’s about building resilience into our energy system, attracting investment, and unlocking the economic potential of our renewable energy sector.”
A Solution to Grid Constraints
South Africa has long battled with grid constraints, particularly in areas rich in renewable energy potential like the Northern Cape. The energisation of this substation directly addresses those issues by enhancing grid capacity and enabling the connection of more renewable projects that have been approved under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
For years, many renewable projects faced delays due to a lack of available grid access. With this new substation, several long-stalled IPP projects can now proceed to construction and commissioning phases, accelerating South Africa’s efforts to reduce its carbon footprint and phase out coal dependency.
Public-Private Collaboration Paying Off
This achievement also reflects the growing role of private sector investment in critical public infrastructure. As load shedding continues to hamper economic growth and investor confidence, enabling private developers to build infrastructure traditionally managed solely by the state is seen as a pragmatic step.
“The success of this project demonstrates the effectiveness of collaboration between the public and private sectors,” said Bernard Magoro, head of the IPP Office. “We hope this sets a precedent for future projects and shows that the private sector can play a constructive role in national development.”
What’s Next
Following the energisation of this substation, Eskom and the Department of Energy have hinted at plans for more IPP-built infrastructure in other provinces facing grid congestion, including the Eastern Cape and Western Cape.
The Northern Cape remains the heart of South Africa’s clean energy drive, and with this new infrastructure in place, the region is well-positioned to become a renewable energy powerhouse.
