Electricity minister Kgosientsho Ramokgopa is upbeat about the energy sector for next year, saying it has moved from a “crisis” to a “catalyst” for economic growth.
While announcing the first stage of the Independent Transmission Projects (ITP) programme and the additional preferred bidders under bid window 7 of the renewable energy independent power producer procurement programme on Monday, he said the total capacity of the window now amounts to 3.94GW. It will be built by 18 solar power projects across Limpopo, the Free State, North West and Mpumalanga.
Since the inception of the independent power producers (IPP) procurement programme in 2010, 8.16GW of contracted capacity, from 103 private sector projects, has reached commercial operation.
However, the country still has a far way to go to add an additional 30GW by 2030 and 55GW by 2039 to meet future energy needs.
Bid window 7 was designed to facilitate the procurement of up to 5GW of renewable energy capacity, comprising 1.8GW solar PV and 3.2GW onshore wind capacity.
In December last year, eight solar PV proposals, with a combined capacity of 1.76GW, were appointed as preferred bidders.
The new bidders are Red Rocket South Africa and Engie, which have committed investment of R16-billion. South African equity participation of 49% across all the preferred bidders and average black economic empowerment participation of 40% have been committed by these projects.
Independent transmission projects
On the new ITP programme, Ramokgopa said seven pre-qualified bidders have been appointed under the request for pre-qualification stage of phase one.
“This stage of the ITP procurement programme marks a defining milestone in government’s strategic drive to expand, modernise and strengthen South Africa’s transmission network through diversified delivery mechanisms and sustained private sector participation, in support of long-term economic growth, industrial development and national energy security,” the minister said.
Read: Eskom unveils four-subsidiary structure for future SA grid
The bidders for the ITP programme are:
- Adani Power Middle East – Momentous Energy Consortium
- Aref Cobra Transmission Consortium
- Consortium Pulse Enterprise
- EITP Consortium
- State Grid Consortium
- The Hyperion Consortium
- Transmission Africa Consortium
The final request for proposal should be released by the third quarter of the 2026/2027 financial year.
Finance minister Enoch Godongwana announced during his mid-term budget policy statement last month that government will contribute R2-billion to capitalise a credit guarantee vehicle. Initially, it will support electricity transmission expansion to boost energy security efforts while driving decarbonisation.
“Our partners like the IFC (International Finance Corporation) … are going through their board approvals. We are confident by March they would have done that the credit guarantee vehicle…,” Ramokgopa said.
A wide range of industries and value-chain segments are expected to benefit from the ITP’s localisation and industrialisation drive, including steel products and components for construction; transformers, shunt reactors and associated equipment; and electrical cable products and power line products.
Ramokgopa will announce the five- to 10-year pipeline for the ITP early next year along with the frequency of future bid windows and how the programme will work.
Meanwhile, the minister revealed that an announcement can be expected next year on new electricity tariffs for smelters. “Thanks to the performance of Eskom, we now have the electricity to support the reopening of smelters,” he said.
Ramokgopa said talks between himself, Eskom, Glencore-Merafe Chrome Venture and Samancor Chrome on a new electricity tariff to avert closures and save 3 000 jobs included an offer of 87.7c/kWh. However, this is still insufficient. He said the “sweet spot” is between 60c and 70c. – (c) 2025 NewsCentral Media
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