South Africa\u2019s R440 billion transmission grid expansion program has attracted interest from international developers, including a company owned by Indian billionaire Gautam Adani and Chinese firms.<\/p>\n\n\n\n
The continent\u2019s most industrialised nation started up the Independent Transmission Projects program in December to bring in private partners to help install 14,000 kilometers of new power lines. <\/p>\n\n\n\n
The government\u00a0aims<\/a>\u00a0to add 34 gigawatts of generating capacity from wind and 25 gigawatts from solar over the next 14 years, and will require more connections to an already constrained system.<\/p>\n\n\n\n Seventeen companies and consortia responded to a request for pre-qualification by South Africa\u2019s Independent Power Producer Office. <\/p>\n\n\n\n They include Adani Power\u2019s Middle East unit, China Southern Power Grid International, State Grid International Development Co. and France\u2019s EDF Power Solutions. Local companies SOLA Group and Mulilo Renewable Energy Ltd. also expressed interest.<\/p>\n\n\n\n Adani is the founder and chairman of the Adani Group, a multinational conglomerate involved in port development and operations in India. <\/p>\n\n\n\n He is ranked by Forbes as the 27th richest man in the world with a net worth of $71 billion, and the second richest man in India, after Mukesh Ambani ($108 billion).<\/p>\n\n\n\n The Adani Group has several subsidiaries in the power and energy sector, including Adani Green Energy, Adani Power and Adani Energy Solutions.<\/p>\n\n\n\n The ITP is in a \u201cpre-qualification evaluation phase\u201d that is expected to be concluded by November, the Independent Power Producer Office said in a response to questions. <\/p>\n\n\n\n Upgrading the national grid will underpin the government\u2019s energy strategy. South Africa is gradually retiring coal-fired plants it currently depends on to generate the bulk of its power, and intends utilizing a range of technologies from gas to renewables to meet future demand, the government\u2019s latest blueprint shows.<\/p>\n\n\n\n EDF confirmed its interest in the ITP and is awaiting the request-for-proposal stage of the program \u201cwhich will outline the detailed technical, financial, and commercial parameters for the next phase,\u201d the company said in a reply to questions. <\/p>\n\n\n\n SOLA Group and Mulilo also said they had submitted bids to participate. <\/p>\n\n\n\n An Adani representative didn\u2019t offer any immediate comments, while the Chinese firms didn\u2019t immediately reply to emailed questions.\u00a0<\/p>\n\n\n\n Successful ITPs based on \u201cprivate party undertaking construction and financing risk with variations regarding ownership\u201d have attracted investment in transmission lines in India, Brazil, Peru and Chile, the Development Bank of Southern Africa said in a presentation. <\/p>\n\n\n\n The first phase of the grid expansion will entail a request for proposals to build 1,164 kilometers of transmission lines designed to bring more than 3,000 megawatts of generation capacity on line, Electricity Minister Kgosientsho Ramokgopa said in April. <\/p>\n\n\n\n That project is seen as unlikely to encounter disruptions, such as disputes over land ownership.<\/p>\n\n\n\n A subsequent build of more than ten times the size of the pilot will also require the procurement and installation of transformers and other equipment.<\/p>\n\n\n\n The government plans to make credit guarantees available by July 2026 that will be mainly funded by commercial lenders to support investment in infrastructure by private companies. <\/p>\n\n\n\n A R10 billion facility that will serve as a form of private insurance will initially be used for energy transmission projects, and then be expanded to support investments in water and other infrastructure, Deputy Finance Minister David Masondo\u00a0said<\/a>\u00a0in August.<\/p>\n","protected":false},"excerpt":{"rendered":" South Africa\u2019s R440 billion transmission grid expansion program has attracted interest from international developers, including a company owned by Indian billionaire Gautam Adani and Chinese firms.<\/p>\n","protected":false},"author":59,"featured_media":840808,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[1164,23896,23138],"class_list":["post-840807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-eskom","tag-gautam-adani","tag-the-national-transmission-company-south-africas-ntcsa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/840807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=840807"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/840807\/revisions"}],"predecessor-version":[{"id":840809,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/840807\/revisions\/840809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/840808"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=840807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=840807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=840807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}