Prospects and challenges of implementing smart grid technologies in South Africa

A smart grid is an electricity network that can intelligently integrate the behaviour and actions of all users connected to it, i.e. generators, consumers and those that do both - in order to efficiently deliver sustainable, economic and secure electricity supplies. The need for smart grid technology in South Africa is driven by the low reserve margin on the country´s electricity generation capacity, the need for a more efficient grid with less disruptions, an increase in the electricity price, the consumers´ need for an efficient method of electricity consumption management and the IRP 2010, a 20-year national electricity plan that stipulates the key generation plan for the country. The prospects and challenges of implementing Smart Grid Technologies in South Africa is reported in this paper. It is clear from the case studies of other countries across the globe that at present and in no distant future, the Smart Grids are the way to go. Although in South Africa there are challenges at the moment, however there are some initiatives taken by the power industry, Eskom. There is a need for Government buy-in in terms of putting policies in place, addressing incentives issues and getting all relevant stakeholders involved and to participate in this initiatives going forward.