South Africa’s newly published Electricity Transmission Infrastructure Regulations (31 October 2025) quietly triggered the biggest shift in the country’s energy sector since the unbundling of Eskom began. For the first time, the private sector now has a formal, predictable, and bankable pathway to help build, finance, and operate parts of the national transmission network.
And with grid congestion slowing down more than 20 GW of renewable projects, this change could redefine South Africa’s energy landscape for the next decade. Here’s what opportunities now open up.
1. Transmission Public-Private Partnerships (PPPs): The New Frontier
The Regulations make it clear: transmission infrastructure is no longer a government-only domain.
Private players can now:
- Develop new transmission corridors
- Build high-voltage lines and substations
- Finance grid expansion alongside government
- Operate infrastructure under transmission service agreements
- Recover costs through NERSA-approved mechanisms
This creates a fully investable PPP model around transmission, similar to South Africa’s REIPPPP programme but for lines, not generation.
Who should be paying attention:
✓ Infrastructure funds
✓ Pension funds
✓ International utilities
✓ EPC contractors
✓ Engineering and grid-technology companies
With guaranteed cost-recovery and risk-allocation rules written into the Regulations, transmission PPPs are now one of the most serious investment opportunities in the country.
2. The ITP Programme Phase I: How Developers Can Pre-Position Now
The Department of Electricity and Energy and National Treasury have announced that Pre-Qualified Bidders for Phase I of the Independent Transmission Projects (ITP) Programme will be confirmed by 15 December 2025.
This is the first time SA will run a competitive procurement process for transmission infrastructure. To pre-position effectively, developers need to focus on:
a) Technical readiness
Demonstrate proven experience in high-voltage construction, O&M, environmental compliance and cross-border engineering.
b) Financing capacity
Show strong balance sheets or committed financial partners capable of funding long-tenor grid assets.
c) Risk-management capability
The Regulations require transparent allocation of technical, operational, and financial risk. Developers must show they can absorb and manage these efficiently.
d) Local partnership strategies
The ITP Programme will favour bidders who bring jobs, localisation, training, and community benefits.
The strongest bidders will be those who start assembling their consortium now, not after the RFP is released.
3. Infrastructure Gaps: Where the Biggest Needs Still Are
South Africa’s transmission system is struggling under the weight of old infrastructure and rapid renewable growth. The areas with the highest opportunity include:
a) Cape Provinces — Wind & Solar Bottlenecks
- 400 kV lines in the Western Cape and Northern Cape are heavily constrained
- Billions in investment needed for new substations and corridor reinforcements
b) Eastern Cape Renewable Zones
Large wind zones remain underutilised due to insufficient evacuation capacity.
c) Joburg–Mpumalanga Corridor
Aging infrastructure and rising demand make this one of the most urgent upgrade areas.
d) Limpopo–Zimbabwe/Zambia Cross-Border Links
Regional trade opportunities are growing, but transmission is limited. Regulation 8 now opens the door for private-sector involvement here too.
Read Also: Winners & Losers: Who Benefits from South Africa’s New Transmission Infrastructure Regulations?
4. Which Provinces and Corridors Will Open First?
While the Minister can deviate from the IRP/TDP in emergencies, the initial focus will likely be on the following priority corridors:
1. Northern Cape → Western Cape Transmission Spine
To unlock thousands of megawatts of new solar.
2. Eastern Cape Wind Belt → National Grid
High-yield wind farms waiting for evacuation capacity.
3. Mpumalanga → Gauteng Transmission Strengthening
Critical for load centres and industrial demand.
4. Cross-border SA–Mozambique and SA–Botswana Links
Key for future imports/exports and regional energy security.
These focal points will drive the next wave of tenders, private investment, technology demand, and EPC contracting activity.
The new Regulations have moved South Africa into an era where the private sector is no longer a supporting actor, it is now a critical partner in solving the country’s electricity crisis.
For:
- developers,
- investors,
- banks,
- engineering firms,
- and global utilities…
…the window has just opened for one of the largest infrastructure investment waves in modern South African history.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
