On 28 March 2025, the Minister of Electricity and Energy (Minister) issued a significant determination under section 34(1)(b) of the Electricity Regulation Act, 2006 (ITP Determination) addressing the urgent need for an improved electricity supply infrastructure in South Africa. The determination lays the foundation to ensure the security of South Africa’s energy supply by introducing the Independent Transmission Providers Programme (ITP Programme).

The necessity for new transmission infrastructure to meet the growing electricity demands and to enhance the reliability of power supply prompted the release of the ITP Determination, which seeks to procure private investment into South Africa’s transmission landscape, which will continue to be run by the National Transmission Company South Africa (NTCSA), through the ITP Programme, launched on 1 April 2025.

We set out some of the salient points of the ITP determination:

Specification of New Transmission Infrastructure

  1. Stemming from the Integrated Resources Plan and Transmission Development Plan of 2024, the ITP Determination specifies the necessity for 400 kV transmission power lines, with the associated transformation infrastructure.
  2. This new infrastructure will span approximately 1,164 kilometers and will be located within the Northern Cape, North-West, and Gauteng provinces.
  3. This initiative will be carried out through the ITP Programme, aimed at securing investment for the design, finance, and development of the transmission power lines.

Procurement Process

  1. The procurement of the transmission infrastructure will be conducted through one or more cost-effective tendering procedures, ensuring fairness, equity, transparency, and competitiveness.
  2. It is mandatory for the infrastructure to be procured from independent transmission providers.
  3. The Department of Electricity and Energy, or any entity designated by the Minister, will act as the procurer. This entity will be responsible for conducting the tendering procedures, preparing requests for proposals, drafting transmission service agreements, and facilitating the conclusion and implementation of these agreements.

ITP Programme

  1. The ITP Programme seeks to foster joint efforts between the public and private sectors to address energy challenges and improve economic growth with an initial target deadline of 2029. The ITP Programme is expected to contribute up to 3 222MW to the South African grid network.
  2. The programme includes plans to procure the private development of transmission infrastructure to improve at least seven planned transmission corridors across Gauteng, Northern Cape and North West – specifically focused on enhancing grid accessibility for the multitude of renewable energy projects located in these areas.

Role of the National Transmission Company of South Africa SOC Limited (NTCSA)

  1. The purchaser of the electricity transmission infrastructure will be the NTCSA.
  2. The NTCSA will operate in accordance with a transmission services agreement and related project documents required to be concluded in accordance with the tender procedures.

Be on the lookout for some of our upcoming articles, as we delve into this crucial development in the South African energy landscape.