A Bold Vision For National Energy Security

Paving The Way To A Load-shedding Free South Africa

By Jessie Taylor

As South Africa accelerates its efforts to stabilise its energy grid and unlock its full economic potential, the Independent Transmission Projects (ITP) Programme stands out as a bold and positive turning point.

With an estimated R440-billion in private investment, the ITP represents a pioneering publicprivate initiative to overhaul the country’s transmission infrastructure and drive sustainable growth. Through strategic planning, transparent regulation, and strong collaboration, the ITP has the potential to end loadshedding and pave the way for a green and secure energy future.

A Bold Vision For National Energy Security

The ITP Programme responds to a well-recognised need: South Africa’s electricity transmission network must expand rapidly to accommodate new renewable energy sources and ensure reliable power delivery nationwide. The Department of Electricity and Energy has embraced this challenge with a clear vision in partnership with the National Treasury. The programme targets the construction of 14,000 km of new transmission lines over the next decade, enabling greater integration of solar, wind, and other renewable projects currently held back by grid limitations.

The first phase of the ITP focuses on building 1,164 km of 400 kV transmission lines across energy-rich areas such as the Northern Cape, North West, and Gauteng. These regions are key to South Africa’s renewable energy ambitions and represent significant investment and job creation potential. The buildoperate-transfer (BOT) and buildown-operate-transfer (BOOT) models being implemented offer private investors the opportunity to fund, construct, and operate these lines with the assurance of state collaboration and longterm value.

A central feature of the ITP is the strong regulatory foundation laid by the government. A Section 34 Ministerial Determination and newly drafted electricity transmission regulations provide guidance on procurement, permitting, pricing, and risksharing. Notably, the draft framework includes mechanisms to ensure predictable cost recovery through Transmission Services Agreements, thereby providing investors with stability and certainty.

To further support investor confidence, the National Treasury, in partnership with the World Bank, is establishing a Credit Guarantee Vehicle. This innovative financial structure ensures that liabilities from transmission development do not negatively impact the National Transmission Company of South Africa (NTCSA) balance while offering protection to private investors. This reflects the government’s commitment to responsible fiscal policy while enabling infrastructure development.

Strong Market Confidence and Strategic Rollout

Market response has been overwhelmingly positive. Over 130 entities responded to the initial request for information, including local developers, global infrastructure firms, financiers, and energy technology partners. Many local companies seek joint ventures with international players, demonstrating confidence in the programme’s design and its opportunities for capacity-building and skills transfer.

A key challenge in past infrastructure rollouts has been land acquisition. The ITP addresses this head-on, with the government committing to finalising permitting and land access processes before the issuance of project tenders. Expropriation with compensation remains a last-resort mechanism, ensuring a balanced and fair approach that respects both community and development needs.

The roadmap for the ITP is already in motion. Following the December market-sounding launch and the gazetting of the Section 34 determination in March, draft transmission regulations were released for public consultation in April. A Request for Qualifications (RFQ) is expected by mid-2025, with the Request for Proposals (RFP) to follow in November. These milestones indicate a focused and well-paced rollout strategy that will deliver measurable progress in the coming months. Importantly, the ITP aligns with South Africa’s broader climate resilience, industrialisation, and inclusive economic growth goals. By enabling over 3.2 GW of renewable energy capacity currently stranded due to grid limitations, the programme is essential to South Africa’s clean energy transition.

By combining the strengths of the private and public sectors, the ITP Programme exemplifies how infrastructure can be financed, developed, and delivered in a way that is inclusive, sustainable, and future-focused. The involvement of international financial institutions, robust regulatory oversight, and a collaborative implementation strategy all point to a programme designed for long-term success.

The ITP is more than just a technical solution to load-shedding; it symbolises confidence in South Africa’s ability to innovate and attract high-impact investment. If successful, this initiative will be remembered not just for the kilometres of cable laid or substations built, but for the light it brings to homes, industries, and the broader economy. It is a transmission gamble in name only - in practice, it is a strategic investment in South Africa’s future.

Sources: Daily Maverick | National Treasury | Business Report