South Africa’s 14,000km Transmission Grid Expansion: Private Sector to Play Key Role

The South African government is turning to private sector investment to accelerate the expansion of Eskom’s transmission grid. This comes as the country faces a pressing need to upgrade its electricity infrastructure to accommodate new renewable energy projects.

While Finance Minister Enoch Godongwana’s 2025 Budget Speech has been postponed, a Budget Review document shared with journalists has outlined plans for private-sector participation in expanding the transmission network.

Eskom’s 14,000km Transmission Challenge

Eskom has been tasked with expanding South Africa’s electricity transmission lines by 14,000km by 2033. However, slow progress has raised concerns about the feasibility of meeting this target. The state-owned utility currently builds just 300km of new transmission lines per year—far below the 2,500km required annually to meet its goal.

In response, the government is launching the Independent Transmission Project later in 2025. A request for information will be issued in July, followed by a request for proposals in November, paving the way for private-sector investment in transmission infrastructure.

The Role of Private Investment in the Energy Sector

According to Krutham managing director Peter Attard Montalto, expanding South Africa’s grid is crucial to unlocking the full potential of renewable energy projects. “To connect it all together, we need a vastly upgraded grid, and everyone has acknowledged this,” he said. “Bringing the private sector into the mix through independent transmission power projects will be critical.”

The National Transmission Company South Africa (NTCSA) has estimated that upgrading the grid will require R390 billion, with R112 billion earmarked for transmission development over the next five years. This investment is expected to support the integration of 30,000MW of renewable energy into the grid by 2029.

A Race Against Time

With plans to add 11,000MW of new capacity by 2027, South Africa’s energy sector is at a turning point. The expansion of transmission infrastructure is a key priority, as it will determine whether Independent Power Producers (IPPs) can deliver the electricity they generate to consumers across the country.

The success of the Independent Transmission Project will depend on how quickly the government and private sector can collaborate to roll out new transmission lines. As South Africa transitions to cleaner energy, an upgraded and efficient grid will be essential in ensuring energy security and reducing the impact of load shedding.

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