Minister of Electricity and Energy Kgosientsho Ramokgopa says South Africa’s transmission grid will remain a "strategic state asset"
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Minister of Electricity and Energy Kgosientsho Ramokgopa says South Africa’s transmission grid will remain a strategic state asset, even as the government opens the door for private companies to help build and finance its expansion.
Ramokgopa said this in a parliamentary response to questions from uMkhonto we Sizwe MP Thuthukani Kubheka, who asked for details on bidders involved in the R440 billion grid expansion programme and why the project is not being fully financed through state-linked funds such as the Public Investment Corporation.
The minister said that while the grid will remain under public ownership and control, the scale of the planned expansion makes it impossible for the state and Eskom to fund the project alone.
He added that the R440 billion transmission expansion will be rolled out through a new Independent Transmission Projects model, which allows private companies to help finance and build parts of the grid under regulation.
"The transmission network will remain a strategic national asset, governed in the public interest, with expansion delivered under a regulated framework. The grid expansion programme is being structured to mobilise a mix of public and private capital, given the scale of the infrastructure rollout required," Eskom said.
"The Transmission Development Plan indicates that approximately 56 GW of new generation capacity will need to be integrated between 2025 and 2034, requiring nearly 14,500 km of new transmission lines and associated network infrastructure".
He added, "while the transmission grid will remain a strategic national asset, the financing approach seeks to crowd in private capital to accelerate delivery and reduce pressure on the fiscus".
"This is consistent with the broader energy market transformation agenda of leveraging blended finance and institutional investment to support infrastructure rollout. It is also worth noting that domestic institutional investors (including pension funds) are not excluded from participating".
mthobisi.nozulela@iol.co.za
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