An Indian billionaire-led company and six other international groups have entered the race to execute South Africa’s long-delayed $25 billion electricity transmission upgrade, a project widely seen as vital to easing constraints in one of Africa’s most stressed power systems.
South Africa’s electricity ministry said seven consortia have been pre-qualified to bid for the expansion of the national transmission grid, a programme valued at about $25 billion, or roughly R440 billion.
The announcement was made on Monday, December 15, in Pretoria by Electricity Minister Kgosientsho Ramokgopa, according to Business Insider Africa.
Among the shortlisted bidders is the Middle East unit of Adani Power, part of the Adani Group founded and chaired by Gautam Adani, one of India’s wealthiest individuals.
Forbes ranks Adani among the world’s richest people, with business interests spanning ports, power generation, renewable energy and large-scale infrastructure.
The list also includes major global utilities and state-backed firms such as France’s Electricité de France, China’s State Grid International Development, and China Southern Power Grid International, underscoring the international scale of South Africa’s grid expansion ambitions.
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Ramokgopa said the pre-qualification marked a significant step in the government’s effort to modernise and reinforce the country’s electricity backbone.
He described the programme as critical to unlocking economic growth, supporting industrial development, and strengthening energy security through increased private sector participation.
The transmission expansion is a central pillar of South Africa’s energy transition, as the country remains heavily dependent on ageing coal-fired power plants that are gradually being retired.
To meet future demand, the government plans to integrate renewable energy, gas and other technologies, a shift that requires substantial new transmission capacity.
The first phase of the programme will involve a request for proposals to construct about 1,164 kilometres of new transmission lines, enabling the connection of more than 3,000 megawatts of additional generation capacity to the grid.
Later phases are expected to be significantly larger, with major investments in transformers and related infrastructure.
Ramokgopa also confirmed that four groups have been selected as preferred bidders in the latest round of South Africa’s renewable energy procurement programme, reinforcing the country’s parallel push to add new clean power capacity as it seeks to stabilise electricity supply and support long-term economic recovery.
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Image Credit: Business Insider Africa
