The National Treasury of South Africa has decided to launch a pilot project in 2024 aimed at encouraging private investment in electricity grid infrastructure.
This step would not only boost the private sector participation in the energy and logistics sectors, but also enhance the grid’s capacity, which would reduce load-shedding and enable more renewable energy projects to connect to the grid. The Treasury is collaborating with the International Finance Corporation to explore financing options that can accelerate private investment in transmission without placing an undue burden on South Africa’s state-owned company, Eskom, or the public purse. The government aims to raise ZAR390 billion to fund Eskom’s transmission development plan, which involves the construction of over 14,000 km of new power lines by 2032.