- South Africa’s Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa has signed a ministerial determination for the procurement of a total of 1164km of 400kV transmission infrastructure in the Northern Cape, Northwest and Gauteng.
- The buyer is the National Transmission Company of South Africa
- South Africa’s energy transition from predominantly coal fired power generation to renewables has been hamstrung by outdated transmission infrastructure and the lack of funding from government to own the change.
- Link to the full determination HERE
Government to include public private partnerships in transmission sector going forward
Mr Enoch Godongwana recently announce in his budget speech that new regulations for public-private partnerships (PPPs) have been finalised and will take effect on 1 June 2025.
The regulations reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs, create clear rules for managing unsolicited bids, and strengthen fiscal risk governance.
The regulations also make provision for national departments to establish sector-specific PPP units. These units will drive private sector participation (PSP), creating opportunities to optimise the balance sheets of financially distressed state-owned companies.
Treasury and the World Bank working on credit-guarantee framework
In her visit to South Africa in July last year, Satu Kahkonen, World Bank Country Director for South Africa, confirmed the World Bank’s commitment to South Africa’s energy transition.
The cost of this transition will be at least $500 billion by 2050, of which $140 billion will be needed before 2030. “Financing from the international community and mobilisation of private capital will be vital,” she added.
“The World Bank is ready to assist South Africa in this transition. We are proud to already support the energy transition. This includes the restructuring of the power sector, decommissioning of the first coal-fired power plant, private investment in renewable energy and storage, and just aspects of the transition. But we are ready to do much more,” concluded Kahkonen.
Author: Bryan Groenendaal
