R440bn ITP initiative: Minister says transmission reforms to spark more investment and job creation

News24

4 days ago

Kgosientsho Ramokgopa announces R440 billion investment programme to support renewables and economic development.
Eskom says the ITP launch is a milestone for private sector energy investment and a low-carbon transition.
Local ownership, skills training and inclusive participation are central to the ITP framework.
Electricity and Energy Minister Kgosientsho Ramokgopa says the independent transmission projects (ITP) initiative is not only a solution to SA's power constraints, but also a foundation for broader economic transformation, including job creation, localisation and industrialisation.
Speaking at the JSE on Thursday, Ramokgopa formally announced the request for qualification (RFQ) for private sector participation in new transmission projects, describing the ITP as the largest infrastructure build programme initiated by the post-apartheid government.
'A significant part of the R440 billion investment over the next ten years will come from the private sector.'
We've created a procurement framework that invites them to build, operate and later transfer the transmission lines back to the state via the National Transmission Company SA [NTCSA].
Kgosientsho Ramokgopa
The minister emphasised that these efforts are intended to not only improve grid access for renewable energy but also promote inclusive growth. The ITP programme aims to support the launch of solar and wind energy projects, which often struggle to feed electricity into the grid due to limited transmission capacity.
'We're addressing more than just megawatts. We're resolving issues of access, affordability and economic participation,' said Ramokgopa, noting that around 1.6 million households remain without electricity.
'We require that 49% of any winning bidder's ownership be SA-based, and there are expectations around local content, skills development, and inclusion of women and youth.'
The minister said energy access in rural and peri-urban areas would be improved through the programme, while also stimulating industrial development. He added that energy constraints have limited SA's economic performance, but the reforms under the ITP could help unlock growth as envisioned in the National Development Plan.
'The economy has been held back by load shedding. We want to make energy a catalyst for economic recovery.'
This transmission plan supports decarbonisation while maintaining base load generation from coal and nuclear. It's a balanced approach to ensure reliability and sustainability.
Kgosientsho Ramokgopa
Eskom has welcomed the milestone. In a statement on Thursday, group CEO Dan Marokane described the RFQ launch as 'a significant milestone' that sets the stage for greater competition and helps shift the country's energy mix towards lower-carbon sources.
'A significant milestone has been reached today to realise the delivery of new transmission infrastructure that will deliver greater competition and facilitate the transition from high carbon to low carbon sources of energy to drive economic growth to the benefit of all citizens, thanks to the leadership of the minister and the director-general of the National Treasury,' Marokane said.
He added that the framework developed under the ITP process provided clarity and predictability for private investors: 'The clear, transparent policy framework is designed to crowd in large-scale private sector funding by providing the safeguards required, including predictability and governance, that enable developers to seamlessly start due diligence to bid competitively.'
Eskom, through its subsidiary NTCSA, has been preparing seven projects for procurement under phase one of the ITP. These projects go beyond the Cape regions and are expected to be ready for implementation by next year. The NTCSA has worked closely with the ministries of electricity and energy and the Treasury on aspects such as strategic oversight, procurement and regulatory matters.
'We are comfortable that the NTCSA will continue with these projects to ensure that they are ready for the ITPs to construct after the procurement process is completed,' said the utility.
Ramokgopa added that the RFQ issued this week marks the first stage, with a request for proposals to follow, paving the way for construction to begin within the next two years.
This isn't just about transmission lines and substations; it's about tackling economic challenges head-on and creating new growth opportunities.