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Minister of Electricity and Energy Kgosientsho Ramokgopa has unveiled a strategy to tackle the nation’s energy crisis by involving the private sector in the development of transmission infrastructure. During a press briefing on Tuesday, he provided an update on how the private sector would contribute to enhancing the country’s power infrastructure, noting that the current transmission network is struggling to keep pace with the increasing renewable energy output, especially in the Northern and Western Cape regions.
“We aim to establish a framework that facilitates private sector investments in transmission,” Ramokgopa stated. This announcement follows Minister of Environment, Forestry, and Fisheries Dion George’s recent approval of eight “limited emissions exemptions” for Eskom coal power plants.
George criticised Eskom for failing to meet emission standards and delaying necessary energy reforms, which have led to rolling blackouts, rising costs, and economic stagnation.
Ramokgopa highlighted that neither Eskom nor the government has the budget to support the substantial investments needed to enhance the transmission network, which requires approximately R440 billion to upgrade and extend by around 14,000 km. He remarked, “The Eskom balance sheet and the sovereign balance sheet are insufficient for the level of investment required.”
To address this, Ramokgopa announced the initiation of a pilot project under the Independent Transmission Providers (ITPs) program, enabling the private sector to finance and build new transmission lines. He noted that the transmission development plan indicates the necessity for these 14,000 kilometers of new lines to harness capacity in the Cape provinces.
The new transmission lines are projected to unlock over 3,000 megawatts of renewable energy that is currently underutilized due to infrastructure limitations. “Our renewable energy assets are not fully utilized because of transmission constraints. We’ve maxed out our transmission capacity, preventing economic benefits from these resources,” he explained.
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Additionally, the Minister assured that the procurement process would adhere to the country’s principles, emphasising fairness and cost-effectiveness. “We will procure under the most competitive and equitable tendering processes,” he said. The initiative is expected to unfold over ten years, with the first phase slated for completion by 2029.
