LOSHNI NAIDOO | Building a clean power system that can rebalance the economy

Every serious clean‑energy conversation ends with the same conclusion: we have to build the grid and scale clean energy infrastructure.

The world’s reliance on dwindling, increasingly expensive fossil fuels, compounded by rising carbon taxes, is colliding with “greenflation”, as the rush to renewables drives up the cost of critical mined materials.

Meanwhile, the intermittency of solar and wind highlights the urgent need for scalable, carbon‑safe energy sources capable of stabilising the grid and ensuring reliable, affordable power.

South Africa’s updated Integrated Resource Plan (released in 2025) recognises this reality by placing grid infrastructure and system operations at the centre of the transition. It outlines different future energy mix scenarios, shows when coal plants will be retired and commits to a new flexibility approach that relies on big batteries, demand‑response, quick‑start backup plants and targeted grid support. The real test, though, lies in our ability to sequence projects and reskill people quickly enough to deliver what the plan promises.

There is a strong need for more clean‑energy investment in emerging markets and developing economies. These Global South regions hold more than half of the world’s population but receive less than 15% of global clean‑energy funding, despite huge growth potential.

This imbalance points to a misalignment between where capital is needed and where it is flowing, especially as the world accelerates toward net zero and promotes a just transition that supports jobs, inclusivity and a low‑carbon future.

To mobilise capital at the scale required without straining the sovereign balance sheet, authorities are piloting build‑operate‑transfer (BOT) concessions that clearly allocate risks from permits and land access to currency shifts, interest‑rate movements and unforeseen events while enabling guarantees and insurance to lower financing costs.

A relevant peer example is the Philippines (with the Makati Business Club), which is advancing build-operate-transfer power grid concessions to attract private investment for transmission upgrades and accelerate renewable‑energy integration, a model that has already proved effective as clear risk‑sharing and guarantees have helped draw capital and improve grid efficiency.

A reliable, climate‑friendly energy system needs a mix of sources. Wind and solar will supply a lot of power but we still need backup energy that can switch on when the weather does not co-operate. The biggest risk is shutting down old fossil‑fuel plants too quickly, before clean energy can provide power all day and night.

To keep the lights on during the transition some older plants may need to stay open a bit longer. This period should also be used to train workers, develop new technical skills and build or transform industries such as storage, grid services and renewable manufacturing so that the workforce and the economy are ready for a fully clean‑energy system.

A successful energy transition needs people with the right skills. Workers must be trained in the basics of building and maintaining power lines, substations and grid equipment, alongside newer skills for managing sophisticated levels of renewable energy and keeping the system stable.

As storage becomes more important, technicians will also need practical training in battery safety, how to run energy‑management systems and how to restart the grid after an outage. Municipal teams need strong capabilities in wheeling, metering, revenue protection and accurate energy data because many problems come from process failures, not equipment failures. In most transitions, the biggest bottleneck isn’t missing technology; it’s a gap in training.

Planning must also reflect the economic realities investors already factor in. Under net‑zero pathways there are usually early policy shocks such as higher carbon costs and stricter financial conditions followed by lower long‑term climate damage. For grid programmes this means securing guarantees early, locking in long‑lead equipment before global shortages hit and being clear about how carbon costs flow through power‑purchase agreements because lenders will expect that clarity.

Local manufacturing is important for jobs and resilience but it must be done without taking on unnecessary risk. South Africa can scale production of towers, cables, switchgear and grid electronics, but we cannot ignore the global bottlenecks in critical‑mineral supply.

The safest way to grow is by following international standards, using common specifications that enable the use of multiple suppliers, and building regional recycling for metals and battery materials. Where delays are unavoidable, they should be priced in, insured and communicated openly.

Projects such as the Independent Transmission Programme (ITP) and Operation Vulindlela are crucial because they focus on fixing the practical hurdles that slow down investment. They tackle everyday blockages such as slow approvals, infrastructure bottlenecks and unclear rules that make it hard and costly for projects to move forward.

Operation Vulindlela 2.0 aims to improve how systems work, especially in energy, logistics, water and digital infrastructure, so investments can progress with less friction. The ITP, in turn, creates clearer direction for priority industries and gives businesses the certainty they need to invest confidently and at scale.

For JSE‑listed companies the energy transition is now a capital markets issue as much as an engineering one. Rebalancing the economy through clean energy requires disciplined project sequencing, strong skills and credible risk‑sharing structures. A reliable, flexible grid supported by skilled workers and clear investment pathways will attract long‑term capital.

Companies that prioritise reliability, transparency and concession‑ready projects will gain a financing advantage. A cleaner and more stable power system is achievable, but only with co-ordinated, capability-led execution.

• Naidoo is chief sustainability officer at the JSE.