Department of electricity and energy reaffirms commitment to transmission network expansion
South Africa's independent transmission projects programme is set to unlock private investment and accelerate national energy infrastructure development.
The department of electricity and energy and national treasury have reaffirmed government’s commitment to the independent transmission projects (ITP) programme, a flagship initiative designed to accelerate transmission network expansion and unlock private investment in South Africa’s energy infrastructure.
The ITP programme represents the first time South Africa is introducing private sector participation in the development of national transmission infrastructure. Phase 1 comprises approximately 1 164km of new transmission infrastructure and is intended to establish the foundation for a longer-term, programmatic pipeline of private investment.
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“Transmission infrastructure is a key enabler of South Africa’s future energy system and broader economic development,” government stated.
Significant additional transmission capacity will be required to connect the new generation envisaged under the integrated resource plan 2025, including substantial renewable energy capacity.
The programme complements substantial public investment by the National Transmission Company South Africa (NTCSA), creating an additional pathway to mobilise private capital, technical capability and delivery capacity into priority transmission infrastructure.
Next steps in the procurement process include a second draft request for proposals (RFP) package to be issued to seven pre-qualified bidders before the end of 2026. This consultation round will provide bidders and their lenders with an opportunity to identify any remaining material bankability issues before the Final RFP is released in quarter 2 of 2027.
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The second draft package will be accompanied by a draft non-binding term sheet for the credit guarantee vehicle (CGV), providing greater visibility of the proposed credit enhancement framework.
Progress has been made on establishing the CGV, with the core joint development agreement signed on July 2. The CGV was registered and incorporated on August 12, with governance structures, including a steering committee and advisory board, now in place.
Investor due diligence is underway, with a binding CGV term sheet targeted for the end of quarter 1 of 2027.
Government has emphasised that the ITP programme remains a critical component of its infrastructure and energy investment agenda, with successful implementation supporting energy security, industrial development and long-term economic growth.
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