South Africa Chooses Seven Pre-Qualified Bidders for Grid Expansion Initiative

The electricity ministry of South Africa has shortlisted seven company groups as pre-qualified bidders for the country’s R440 billion ($26 billion) initiative to expand the transmission grid.

The consortia include Adani Power’s Middle East division, the Chinese companies State Grid International Development and China Southern Power Grid International Co, as well as Electricite de France SA, according to a ministry announcement made on Monday in Pretoria.

This stage of the project marks a pivotal moment in the government’s strategy to enhance, modernize, and strengthen South Africa’s transmission network through various delivery methods and sustained private sector engagement. This effort is designed to promote long-term economic growth, industrial development, and national energy security, statements from Electricity Minister Kgosientsho Ramokgopa indicated during a press briefing in Pretoria on Monday.

Ramokgopa also disclosed that four additional groups of companies have been selected as preferred bidders for Bid Window 7 within the Renewable Energy Independent Power Producer Procurement Programme.

Investing in the improvement of South Africa’s transmission grid will bolster the government’s energy strategy. The country is gradually retiring coal-fired power plants, which currently supply most of its energy, and is looking to adopt a mix of technologies, including gas and renewable sources, to meet future energy requirements, as outlined in the government’s latest framework.

The first phase of the grid expansion will solicit proposals to construct 1,164 kilometers of transmission lines, which aim to add over 3,000 megawatts of generation capacity, as highlighted by Ramokgopa in April.

The next phase, which will be considerably larger than the initial effort, will require the acquisition and installation of transformers and other necessary equipment.

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