The market for smart grid network in South Africa is expected to grow at CAGR of more than 3% in the forecast period of 2020-2025. Factors such as upcoming renewable energy projects, increasing investment and deployment of smart grid technologies such as smart meters, intelligent transmission lines, and other associated smart grid infrastructure technologies are expected to drive the market in the coming years. Also, to improve the collection of revenue for electricity and to address electricity theft in low-income areas, the demand for smart grid network is expected to grow. However, the problem of low accessibility to power in underdeveloped regions, along with investment required to develop new grid structure for upcoming renewable projects is expected to hinder the market growth.
Key Highlights
- Advanced Metering Structure is expected to drive the smart grid network significantly, providing monitoring of bi-directional flow of electricity, owing to increasing grid development.
- South Africa is showing massive growth in the renewable market, reaching more than 6100 MW in 2019. This, in turn, is expected to create a significant opportunity and demand for the new T&D infrastructure and thereby creating an ample amount of opportunity for the smart grid network in the near future.
- South Africa is aiming to develop and renovate its aging grid infrastructure. To meet the growing electricity demand, The South African National Energy Development Institute (SANEDI) updated the South African Smart Grid Initiative in 2017.
Key Market Trends
Advanced Metering Infrastructure to Witness a Significant Growth
- Advanced metering infrastructure (AMI) or smart metering is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers.
- South Africa has witnessed growth in electricity production until 2018, which is expected to grow in the forecast period. With 250 TWh in 2015 to 256 TWh in 2018, electricity production has increased the demand for smart grid and smart meters as well.
- With the increasing efforts to modernize the electricity grid and reduce transmission and distribution losses, the government across South Africa is investing in advanced metering infrastructure. This, in turn, is expected to drive the AMI market during the forecast period.
South African Smart Grid Vision and Renewable Energy to Drive the Market
- South Africa introduced a Smart grid vision to define a standard national blueprint for the smart grid before industry stakeholders and participants commit to an investment program of this magnitude and complexity.
- South African National Energy Development Institution is a separate body working with industry to provide policy inputs, address the gaps in standards, and the deployment and application of technology in smart grid deployment.
- In November 2017, South Africa and the European Union established a dialogue facility project in the review of the existing Smart Grid Vision document, consultative workshops, and a study tour to experience first-hand integrated deployments of smart grids within distribution networks.
- With the development of renewable energy sources, installed capacity of more than 2700 MW in 2014 and 6167 MW by the end of 2019, the demand for the smart grid has increased. With further renewable growth in the forecast period, the market is expected to grow significantly.
- The aim of the South African government to electrify the country entirely by 2030, and with the initiatives mentioned above, the market is expected to grow considerably.
Competitive Landscape
The South Africa smart grid network is partially consolidated. Some of the major companies include General Electric Company, Eskom Holdings SOC Ltd, Honeywell International Inc, Itron Inc, and Schneider Electric SE.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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