Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has announced that government will pursue private investment for the construction of new transmission lines through the Independent Transmission Programme (ITP).
Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa has announced the first pilot project of an ITP.
At a media briefing in Pretoria on 1 April 2025, the minster said a pilot programme for the ITP will, as a start, pave the way for the construction of 1 164 kilometres of new 400 kV transmission lines across three provinces and is designed to support renewable energy projects,
“Our renewable energy assets are not fully exploited as a result of the constraints on the transmission side. The Eskom balance sheet and the sovereign balance sheet do not hold sufficient reserves to carry the kind of investments that are required in this space.
“In terms of the national Transmission Development Plan, we need to modernise and expand transmission by about 14 000 km. To do this, we need about R440 billion. The state is not in a position to provide that kind of support. So, today, we are introducing the Independent Transmission Programme,” Ramokgopa said.
He added that a ministerial determination has been issued to create a dispensation that allows for private sector participation.
“Our view is that we need to be able to accelerate and support transmission infrastructure development. The Transmission Development Plan states that we need this 14 000 km of new lines to be able to unlock new generation capacity, especially in the Cape provinces. That is where we have the most efficient and reliable renewable energy assets, in the form of solar and wind, but we have exhausted the transmission that allows us to evacuate the electrons so that the economy can benefit from those assets,” the minister said.
Ramokgopa added that the procurement of new transmission will be done in the most cost-effective way and the ministry will ensure that tendering procedures are fair, competitive and equitable. He said, regulations will be issued this Thursday (3 April 2025).
The ministerial determination designates the Department of Electricity and Energy (DEE) as the procurer and the National Transmission Company South Africa (NTCSA), the Eskom subsidiary responsible for the grid, the transmission system and market operations, as the buyer of the ITP capacity over the concession period.
“The requirement for the ITP pilot has to be consistent with the Transmission Development Plan and it must support the IRP (Integrated Resource Plan). It must also be commercially viable,” Ramokgopa said.
“The new generation capacity that we will unlock as a result of this intervention is 3 222 MW. That is about 63% of the total capacity of the Medupi and Kusile power stations. We are moving in the right direction.
“For the South African economy to grow, we need first to unshackle the issues of the structural constraints, which relate to electricity and the inefficiencies in logistics. Second, we need greater investment by the private sector. Electricity gives us the opportunity to transform and grow the economy,” he said.
In terms of timelines for the ITP pilot project, a Request for Qualification will be issued in July and a Request for Proposals will be issued in November. This process will be overseen by the Independent Power Producer Office (IPPO), which has managed the country’s renewable energy procurement programme since 2011. Although not yet clarified, it is anticipated that a build, own, operate and transfer model will be used for this pilot project.
For more information visit: www.sanews.gov.za
