South Africa’s renewable energy sector is expanding rapidly, with private investment in transmission infrastructure emerging as an increasingly important part of unlocking the country’s wind potential.
The latest registration data from the National Energy Regulator of South Africa (Nersa) shows that 804MW of new capacity was added nationally in the latest quarter, with just two wind projects accounting for 71% of the total. The 124 facilities registered during the quarter represented R20.18 billion in investment.
Among the projects demonstrating how private grid infrastructure can support renewable energy development is the 330MW Impofu Wind Farm cluster in the Eastern Cape.
Developed by Red Cap Energy and now owned and operated by Enel Green Power South Africa, the project has reached full commercial operation after a development process spanning a decade.
A defining feature of Impofu is its privately developed 116km, 132kV transmission line across the Kouga region. The infrastructure was required to connect the wind project to the grid and involved negotiating access across 87 separate land parcels.
Mark Tanton, CEO of Red Cap Energy, said the company recognised early in the development process that existing grid infrastructure would not be sufficient to accommodate the project.
“Ten years ago, when we decided to expand our development activities in the Kouga region, because of its wind potential, we quickly realised that existing grid infrastructure wouldn't be enough to get that power to where it was needed,” Tanton said.
“Rather than walking away from one of the country's key wind corridors, we pivoted to permit the transmission line ourselves.”
Building infrastructure across 87 land parcels
The transmission infrastructure became one of the most complex aspects of the project, requiring negotiations across private farms, state forestry concessions, correctional facilities and municipal land.
Tanton said securing the route required rights across 87 separate land parcels, while objections and local requirements resulted in changes to the proposed route.
“The starting point was land access,” Tanton said.
“Securing the route meant negotiating rights across 87 separate land parcels, private farms, state forestry concessions, correctional facilities, municipal ground.”
He said the project team also had to find practical solutions to existing infrastructure challenges affecting communities and other stakeholders along the route.
In Nelson Mandela Bay, for example, an existing municipal line was located on deteriorating pylons surrounded by an informal settlement.
Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber, said collaboration around the infrastructure had helped support the region's industrial economy.
“This line feeds a key industrial area, and we were pleased to collaborate with Red Cap on making this critical project a reality, ensuring stable power supply and economic growth in Nelson Mandela Bay,” van Huyssteen said.
Impofu now part of the national grid
Impofu reached full commercial operation in June 2026.
Its purpose built transmission infrastructure now forms part of the national grid, wheeling renewable energy to Sasol South Africa and Air Liquide's Secunda operations through long term power purchase agreements.
The project highlights the role that privately developed transmission infrastructure can play in overcoming one of the key constraints facing South Africa's renewable energy ambitions.
For developers, however, building transmission infrastructure requires more than engineering expertise.
Tanton said the experience gained through Impofu demonstrated the importance of working through complex land, infrastructure and stakeholder challenges.
“For a project like Impofu the learning happens on the ground, in negotiating each servitude, and in the problem solving that follows when a route needs to change,” he said.
Nuweveld offers a larger test
Red Cap Energy is now applying those lessons to the Nuweveld Wind Farm in the Upper Karoo.
The planned project has an initial capacity of 720MW, making it more than twice the size of Impofu. A further 200km of transmission infrastructure has already been permitted alongside development partner Anthem.
Tanton said the company is now in the advanced stages of financial close, with construction of an initial additional 100km of transmission line expected to follow.
“The initial phase is a 720MW project, more than twice the size of Impofu, and we're now in the advanced stages of financial close,” Tanton said.
“This will pave the way for construction of an initial additional 100kms of transmission line.”
The scale of Nuweveld points to the growing infrastructure requirements associated with renewable energy development as South Africa seeks to expand electricity generation while addressing grid constraints.
Private investment in transmission
The Impofu and Nuweveld projects also align with a model that government is increasingly seeking to encourage through the Independent Transmission Infrastructure Procurement Programme.
The programme provides for private companies to fund, build and ultimately transfer grid infrastructure to the state.
Red Cap said its experience with Impofu demonstrated that private sector participation in transmission infrastructure can work in practice, even before a formal framework was established to support such investment.
For South Africa's renewable energy sector, the development of transmission capacity is increasingly becoming as important as developing generation capacity itself.
Tanton said the key lesson from Impofu was that complex infrastructure challenges could be overcome through collaboration and persistence.
“What Impofu taught us is that problems which look intractable usually aren't,” Tanton said.
“They're not simple and they're not quick, there are no shortcuts to grid capacity in this country. But with the right people and enough patience, they can be solved.”
He said the experience of taking a transmission line from its initial survey through to financial close had given Red Cap capabilities that could be applied to future projects.
“We've taken a line from first survey through to financial close, and that experience carries directly into our next build,” Tanton said.
As South Africa accelerates investment in renewable energy, the experience of projects such as Impofu suggests that the country's energy transition will depend not only on building more wind and solar generation, but also on creating the transmission infrastructure needed to connect that power to where it is required.
ashley.lechman@nationalmg.co.za