OVERVIEW
ELECTRIFYING THE COUNTRY, IN PARTICULAR LOW-COST RESIDENTIAL HOUSING
In 1994 Parliament approved a plan to ensure equal access to basic services for all South Africans and the Reconstruction and Development Programme (RDP) strategy was born. Eskom and the municipalities electrified approximately 2, 5 million households from 1994 to 1998. From 1999 to 2001, the National Electricity Regulator (NER), the predecessor to the National Energy Regulator of South Africa (NERSA) was tasked to develop and oversee the implementation of the Integrated National Electrification Programme (INEP). Eskom was tasked by the NERSA to undertake the implementation through use of contractors and service providers.
In 2001, Government transferred the responsibility and implementation oversight of the electrification programme to the then Department of Mineral and Energy (DME). INEP is currently administered by the Department of Electricity and Energy (DEE). Over 8,6 million households have been connected to the grid and over 226 000 have been connected through non-grid technologies such as solar home systems between 1994 and 31 March 2026.
Municipalities and Eskom are responsible for reticulation and distribution of electricity to households in their licensed supply areas, and are funded through the INEP. Implementation is guided by the consolidated INEP Handbook of Implementation Guidelines, which sets out the applicable standards, processes, procedures and project categories. The programme uses a combination of grid, non-grid and enabling bulk infrastructure interventions to support universal access to electricity by 2030. Currently at least 100 000 households are electrified, 18 000 to non-grid, medium voltage lines and new bulk substations per annum are constructed to extend the services to deep rural areas, including the 44 Districts and the 8 Metropolitan Municipalities.
The national electrification programme is funded through a conditional grant allocation from the National Budget (Fiscus). The DEE occasionally provides capacity-building, oversight and technical support to municipalities struggling to implement the electrification programme.
INEP OVERVIEW
Energy security is critically important for South Africa’s growth, development, and the eradication of poverty. The Integrated National Electrification Programme (INEP) is a national programme aimed at increasing access to electricity by electrifying households across the country.
The overarching goal of INEP is to achieve universal access to electricity by 2030.
Key aspects of the programme include:
- INEP is classified in the Division of Revenue Act (DORA) under the INEP Municipality (Schedule 5B) and INEP Eskom (Schedule 6B) components and is disbursed through the Department of Electricity and Energy (DEE) on an annual basis.
- Grid electrification of households is supplemented by non-grid solutions, currently primarily Solar Home Systems, in remote rural areas. The programme also enables the development of bulk infrastructure where required.
- The rollout of new connections is consistently outpaced by the growing demand for electrification.
- Access to electricity, affordability, and unplanned outages remain some of the main challenges facing the electricity industry.
- According to the 2022 Census data, access to electricity in South Africa has shown remarkable improvement.
- Despite the progress achieved to date, approximately 1.6 million households remain without electricity supply, according to Statistics South Africa (Stats SA) information.
- When illegal connections are taken into account, the actual backlog could be as high as 3 million households without a metered electricity supply.
INEP AT A GLANCE
With more than 94% of households electrified, South Africa has made significant progress in expanding access to electricity. However, substantial work remains to achieve universal access.
The DEE remains committed to its strategic objective of achieving universal access to electricity by 2030.
For the 2026/27 financial year:
- R3.2 billion has been allocated through the INEP municipal and Eskom components.
- R247 million has been allocated for the national rollout of Solar Home Systems, targeting remote and underserved communities.
KEY STAKEHOLDERS AND THEIR ROLES IN THE ELECTRIFICATION PROGRAMME
| Stakeholder | Role |
|---|---|
| Eskom | Plays a major role in electricity distribution and the implementation of electrification projects. |
| Local Municipalities | Responsible for municipal electrification projects and the provision of electricity services to communities. |
| NERSA | Issues licences to Eskom and municipalities in relation to electricity distribution and electrification activities. |
| Non-Grid Service Providers | Implement non-grid electrification programmes in identified areas. |
| National Treasury | Provides funding for the electrification programme. |
| SALGA | Plays a critical role through capacity building and supporting municipalities in the implementation of electrification projects. |
CHALLENGES AND INTERVENTIONS
| Challenges | Interventions |
|---|---|
| Inadequate capacity to deliver and inability to meet annual expenditure targets, resulting in unwarranted rollovers. | Ongoing support is provided to non-performing municipalities through support sessions and monthly Energy Forums. |
| Network overloading due to ageing infrastructure and insufficient investment in new infrastructure, such as substations, transformers, and medium-voltage lines. | The existing infrastructure backlog is being addressed through an active partnering initiative with Eskom. |
| Uncoordinated planning within municipalities and high reliance on consultants. | Plans are in place for the DEE to partner with the Development Bank of Southern Africa (DBSA) to establish a centralised and coordinated Project Management Office (PMO). |
| Project management deficiencies within participating municipalities, resulting in underspending and poor programme performance. | Municipality capacity-building initiatives are being implemented to promote the adoption of project management best practices. |
INEP 2026/27 FINANCIAL YEAR ALLOCATION
| Province | Municipality (R’000) | Eskom (R’000) | Total (R’000) |
|---|---|---|---|
| Eastern Cape | 331,935 | 440,205 | 772,140 |
| Free State | 91,673 | 38,592 | 130,265 |
| Gauteng | 106,918 | 81,271 | 188,189 |
| KwaZulu-Natal | 335,720 | 367,658 | 703,378 |
| Limpopo | 230,373 | 182,797 | 413,170 |
| Mpumalanga | 180,991 | 135,801 | 316,792 |
| Northern Cape | 111,426 | 41,564 | 152,990 |
| North West | 102,372 | 194,417 | 296,789 |
| Western Cape | 154,654 | 110,406 | 265,060 |
| Total | 1,646,062 | 1,592,711 | 3,238,773 |
NATIONAL DEVELOPMENT PLAN (NDP) ON ELECTRICITY
According to Chapter 4 of the National Development Plan (NDP), a significant proportion of South Africans still lack access to the electricity grid. The NDP proposes the following interventions:
- Conduct a thorough review of electrification targets, planning, technology choices, funding, and implementation.
- Subject to cost considerations, South Africa could achieve at least 90% grid connections by 2030, with alternative off-grid options provided to the remaining households for whom grid connection is impracticable.
ACTION PLAN FOR THE REPURPOSING OF INEP
The Action Plan for the Repurposing of INEP was formally approved by the Cabinet Sub-Committee on 27 August 2025 and subsequently endorsed by Cabinet on 3 September 2025.
Objectives of the INEP Action Plan
The overarching objective of the Action Plan is to provide a comprehensive and actionable roadmap for achieving 100% universal electricity access by 2030. This will involve a detailed assessment of existing electrification gaps and a review of both grid-connected and off-grid technology options.
The specific objectives are to:
Analyse current electrification programmes: Review electrification master plans for each province, with a focus on financial expenditure, the number of households connected, and the cost per connection. A gap analysis will be conducted based on the performance of the current programme, with recommendations developed in line with the universal-access goal.
Assess technology and future plans: Analyse and evaluate future plans for achieving universal electricity access, including technology options for grid expansion, off-grid solutions, and microgrids, with an emphasis on strengthening local supply chains.
Improve affordability and financial sustainability: Assess the affordability of electricity for low-income households, propose appropriate subsidy models, and ensure the financial sustainability of INEP through various financing mechanisms.
Strengthen project management and implementation: Propose an optimal Project Management Office (PMO) structure to oversee implementation of the INEP Action Plan and ensure that project milestones are achieved efficiently.