Electricity and Control September 2025

Transformers, substations + the grid

As part of ongoing eorts to unlock infrastructure investments and strengthen South Africa’s energy sector, government is inviting the private sector to invest in the country’s transmission infrastructure through the Independent Transmission Projects (ITP) Programme. Government opens transmission build to the private sector

Government is, for the first time, inviting private investment into expanding and strengthening the national grid.

A t the end of July 2025, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa o•icially opened the prequalification stage for the ITP Programme. Submissions responding to this Request for Qualifications were due by 9 September this year. This is the first time that private investment is being invited to support South Africa’s transmission infrastructure, paving the way for a faster rollout of new high-voltage power lines and additional substations across the country. It will bolster the e•orts already under way by the National Transmission Company of South Africa (NTCSA) in implementing the Transmission Development Plan, which indicates a requirement for more than 14 000 km of new lines and 105 new substations to be built. Ramokgopa confirmed the Grid Infrastructure Investment Plan finalised by Eskom and the CSIR maps out priority zones for expansion in line with the Integrated Resource Plan. The ITP is central to this long-term strategy. Support from Treasury The programme is supported by Eskom and by National Treasury. Speaking at the launch of the Request for Qualifications for the ITP in Johannesburg, Deputy Minister of Finance Dr David Masondo said: “The introduction of ITPs is a key objective of Operation Vulindlela Phase II and will play an important role in the broader reform of the energy system. This includes the introduction of a competitive electricity market, which will allow multiple generators and traders

to compete to provide electricity to consumers at the lowest cost and with the greatest e•iciency.” Masondo said the reform of the energy system is advancing rapidly and government is fully committed to it. The objective is to ensure long-term energy security and expand access to a•ordable electricity for all South Africans. He added that National Treasury is supporting this process with a Credit Guarantee Vehicle, designed as mechanism to unlock private capital and complement public financing for infrastructure while minimising contingent liabilities. South Africa faces a significant need for infrastructure financing. “This calls for the scaling up of public financing for infrastructure as well as drawing in private capital through public private partnerships (PPPs). The objective of the Credit Guarantee Vehicle is to mobilise private capital to address South Africa’s infrastructure financing gap by mitigating o•take risk for private investors,” Masondo said. “The vehicle will also support the e•icient deployment of development partner funding under the Just Energy Transition Partnership (JETP) and the achievement of the country’s decarbonisation commitments,” he said. Although the initial focus will be on enabling investments in transmission infrastructure, it is anticipated that the Credit Guarantee Vehicle will be expanded into other areas such as logistics and water, over time. Masondo said: “The vehicle will be incorporated as a private company in South Africa, regulated by the Prudential Authority. It will operate as a

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