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South Africa pushes private grid expansion tender into 2027

Diajem News· 3 min read· 7 hours ago

Photo: Andy Morffew / Wikimedia Commons, CC BY-SA 4.0

South Africa has delayed the first tender for privately built transmission lines by about six months, shifting the final request for proposals to the second quarter of 2027.

Government says delay will improve the deal

The Department of Electricity and Energy and National Treasury said the revised timetable is designed to ensure the country’s first Independent Transmission Projects are commercially viable, properly governed and capable of attracting strong bids.

The final request for proposals had been expected by the end of September 2026. Instead, government will first consider feedback on draft transaction documents and complete approval processes before issuing the final package in 2027.

Phase one covers roughly 1,164 kilometres of new transmission infrastructure. It is intended to bring private capital and delivery capacity into a part of the electricity system that has long been dominated by Eskom and its transmission arm.

Why the grid matters

South Africa needs far more high-voltage lines and substations to connect new generation, particularly renewable projects planned in areas with strong wind and solar resources. Without transmission capacity, power plants can be ready to build but unable to secure a route onto the national grid.

Hornbill Zazu Chitwa South Africa Luca Galuzzi 2004
Photo: Luca Galuzzi (Lucag) / Wikimedia Commons, CC BY-SA 2.5

The government says the programme is central to expanding the network, unlocking generation capacity and supporting economic growth. Previous official plans have identified a need for more than 14,000 kilometres of new lines over the coming decade.

For Black South Africans, the stakes extend beyond energy policy. Grid constraints can slow investment in factories, mines, local businesses and renewable-energy projects, affecting employment prospects and the cost and reliability of electricity in communities already exposed to weak infrastructure.

A test for energy reform

The Independent Transmission Projects programme is a major test of South Africa’s effort to reform its electricity system after years of load-shedding and underinvestment. Government argues that taking more time now will establish a credible template for a longer pipeline of privately supported grid projects.

But the delay also underlines the difficulty of turning policy ambitions into construction at the scale required. Government has said the first procurement must establish workable commercial, regulatory, contractual and financing arrangements because later projects will depend on that foundation.

The revised schedule comes as South Africa pursues wider changes to separate transmission functions from Eskom and create a more independent system operator. Those reforms are meant to improve access to the grid and support competition, while preserving energy security.

The immediate question is whether the extra time produces a tender that can move quickly from bid stage to construction. Until new lines are delivered, congestion on the grid will remain a barrier to connecting the additional power South Africa needs.