EnergyEnergy Policy

Centralised Grid With Diversified Generation Emerges as Optimal Energy Strategy for South Africa

South Africa’s electricity strategy favors centralised grid systems with diversified generation over standalone microgrids, according to energy officials. Cape Town reports 98% electrification rates while implementing innovative grid-tied solutions. The city’s approach aims to balance affordability with reliability while avoiding utility death spiral scenarios.

Centralised Grid Strategy for South Africa

According to reports from the Solar & Storage Live Cape Town 2025 conference, South Africa continues to favor a centralised electricity grid approach despite the growing popularity of microgrids in other African nations. Sources indicate that Cape Town has achieved 98% electrification, with plans to extend service to the remaining 2% of residents.