South Africa’s repurposed Integrated National Electrification Programme (INEP) Action Plan sets out a detailed roadmap to achieve universal electricity access by 2030.
The plan adopts a technology-neutral approach, combining grid extensions with non-grid solutions such as microgrids, tailored to the specific challenges of each province. This was revealed during the Department of Electricity and Energy briefing to Parliament’s Portfolio Committee on Electricity and Energy on October 29.
In the current financial year, the department will establish a dedicated Project Management Office, finalise a detailed implementation plan and secure the approvals required to begin execution.
Phased rollout across provinces
Grid extensions are planned for Gauteng, Mpumalanga and KwaZulu-Natal from 2026/27 while microgrids will be deployed in remote areas of Limpopo and the Eastern Cape. These systems will take the form of Type 1 (MG1) and Type 2 (MG2) configurations:
- MG1 systems are free, entry-level units designed to power essential needs such as lighting, cell phone charging and radios.
- MG2 microgrids serve rural communities with moderate energy requirements such as powering lights, small refrigeration, televisions and other low-demand appliances.
In 2027/28, grid extension is expected to intensify across Gauteng, Mpumalanga and North West while MG2 and Type 3 (MG3) microgrids will be introduced in rural areas of the Free State and KwaZulu-Natal.
The MG3 system represents a full microgrid solution for higher-demand households and small businesses. It is equipped with a 3 000 W inverter, six 550 W solar panels and battery storage – sufficient to run larger appliances and support small-scale economic activity.
Each configuration includes an inverter, solar panels and battery energy storage.
From 2028/29, grid extensions in Gauteng, Mpumalanga and the North West will continue alongside ongoing MG2 and MG3 deployments across the Free State and KwaZulu-Natal and the rollout of microgrids in the Eastern and Northern Cape.
By 2029/30, electrification across Limpopo, Mpumalanga and the North West is expected to be completed using a combination of microgrids and traditional grid connections.
Balancing cost, access and innovation
Thabo Kekana, Deputy Director-General at the Department of Electricity and Energy, told the committee that the INEP Action Plan addresses the cost and complexity of rural electrification through detailed provincial assessments.
He explained that the plan involves reviewing provincial electrification master plans to assess expenditure, connection numbers and the cost per connection to identify the most cost-effective and technically feasible solutions.
“We reviewed the state of existing infrastructure, costed refurbishment requirements and scoped new infrastructure needs,” Kekana said.
Microgrids for hard-to-reach areas
Providing technical insight, Karen Surridge, Centre Manager at the Renewable Energy Centre of Research and Development of the South African National Energy Development Institute (SANEDI), said grid extension, while ideal, is not always practical in low-demand or remote areas.
“It’s time-consuming, costly and often technically challenging in difficult terrain,” she noted.
Surridge said SANEDI developed a decision-making matrix to determine when to extend the grid or deploy microgrids, using five key criteria:
- Distance to grid infrastructure: Grid extensions are prioritised within 10-15 km of existing lines. Beyond that, costs escalate sharply, favouring microgrids.
- Population density: Dense settlements justify grid connections while sparse communities are better served by microgrids.
- Geography and terrain: Rugged or isolated terrain increases grid costs.
- Energy demand: Higher demand from schools, clinics or small businesses supports MG3 microgrids or grid extensions while MG1 suits low-demand households.
- Cost per connection: Where grid extension costs exceed a defined threshold, microgrids are deployed as the more affordable alternative.
Affordability and energy equity
Affordability remains central to the plan’s design. According to the Department of Electricity and Energy, households in living standards measure categories 1-3 currently receive 50 kWh of free electricity per month. However, SANEDI research shows this allocation is inadequate.
“Our studies show that 50 kWh is insufficient for indigent households. The plan proposes increasing this to 200 kWh per month,” Surridge said.
To protect low-income users from tariff shocks, the INEP Action Plan proposes:
- Tiered tariffs with reduced rates for low-income households
- Flat-rate tariffs for off-grid users with predefined energy use
- Targeted subsidies for rural and informal settlements
While microgrids require significant upfront investment, Surridge said they provide long-term cost stability.
“Once established, operational costs are stable and lower than traditional grids,” she explained.
