Eskom Opens Tender to Attract Private Investment in Transmission Projects Under Energy Transition Plan

Eskom has announced a significant step toward expanding South Africa’s electricity transmission infrastructure with the launch of a pre-qualification tender for private sector investors interested in participating in the country’s upcoming Independent Transmission Projects (ITPs).

The pre-qualification process will allow prospective funders to express interest in financing the construction of new transmission infrastructure. This marks a major milestone in Eskom’s strategy to unlock large-scale private sector capital for national grid development and accelerate the shift from high-carbon to low-carbon energy 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,” said Eskom Group Chief Executive Dan Marokane. He credited the progress to the “leadership of the Minister of Electricity and the Director General of the National Treasury.”

Marokane emphasized that the transparent policy framework underpinning the ITP initiative is designed to attract private capital by offering predictability, sound governance, and a structured environment for investors to begin due diligence and prepare competitive bids.

The program is being driven through Eskom’s wholly owned subsidiary, the National Transmission Company South Africa (NTCSA), in collaboration with the Ministry of Electricity and Energy and National Treasury. The NTCSA has provided technical and regulatory support on strategic planning, procurement models, contractual frameworks, and legal structuring to ensure smooth implementation.

Under Phase 1 of the ITP Programme, seven priority transmission projects are being prepared for procurement. These projects extend beyond the greater Cape regions and are expected to reach implementation readiness by 2026.

“We are confident that NTCSA will continue to move forward with these projects to ensure readiness for private sector construction after the procurement process concludes,” Eskom said in its statement.

The ITP initiative forms part of the country’s broader Transmission Development Plan, aimed at modernizing and expanding South Africa’s grid infrastructure to accommodate increasing renewable energy integration and meet growing electricity demand.