Latest news with #NTCSA
News24
31-07-2025
- Business
- News24
R440bn ITP initiative: Minister says transmission reforms to spark more investment and job creation
Kgosientsho Ramokgopa announces R440 billion investment programme to support renewables and economic development. Eskom says the ITP launch is a milestone for private sector energy investment and a low-carbon transition. Local ownership, skills training and inclusive participation are central to the ITP framework. Electricity and Energy Minister Kgosientsho Ramokgopa says the independent transmission projects (ITP) initiative is not only a solution to SA's power constraints, but also a foundation for broader economic transformation, including job creation, localisation and industrialisation. Speaking at the JSE on Thursday, Ramokgopa formally announced the request for qualification (RFQ) for private sector participation in new transmission projects, describing the ITP as the largest infrastructure build programme initiated by the post-apartheid government. 'A significant part of the R440 billion investment over the next ten years will come from the private sector.' We've created a procurement framework that invites them to build, operate and later transfer the transmission lines back to the state via the National Transmission Company SA [NTCSA]. Kgosientsho Ramokgopa The minister emphasised that these efforts are intended to not only improve grid access for renewable energy but also promote inclusive growth. The ITP programme aims to support the launch of solar and wind energy projects, which often struggle to feed electricity into the grid due to limited transmission capacity. 'We're addressing more than just megawatts. We're resolving issues of access, affordability and economic participation,' said Ramokgopa, noting that around 1.6 million households remain without electricity. 'We require that 49% of any winning bidder's ownership be SA-based, and there are expectations around local content, skills development, and inclusion of women and youth.' The minister said energy access in rural and peri-urban areas would be improved through the programme, while also stimulating industrial development. He added that energy constraints have limited SA's economic performance, but the reforms under the ITP could help unlock growth as envisioned in the National Development Plan. 'The economy has been held back by load shedding. We want to make energy a catalyst for economic recovery.' This transmission plan supports decarbonisation while maintaining base load generation from coal and nuclear. It's a balanced approach to ensure reliability and sustainability. Kgosientsho Ramokgopa Eskom has welcomed the milestone. In a statement on Thursday, group CEO Dan Marokane described the RFQ launch as 'a significant milestone' that sets the stage for greater competition and helps shift the country's energy mix towards lower-carbon 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, thanks to the leadership of the minister and the director-general of the National Treasury,' Marokane said. He added that the framework developed under the ITP process provided clarity and predictability for private investors: 'The clear, transparent policy framework is designed to crowd in large-scale private sector funding by providing the safeguards required, including predictability and governance, that enable developers to seamlessly start due diligence to bid competitively.' Eskom, through its subsidiary NTCSA, has been preparing seven projects for procurement under phase one of the ITP. These projects go beyond the Cape regions and are expected to be ready for implementation by next year. The NTCSA has worked closely with the ministries of electricity and energy and the Treasury on aspects such as strategic oversight, procurement and regulatory matters. 'We are comfortable that the NTCSA will continue with these projects to ensure that they are ready for the ITPs to construct after the procurement process is completed,' said the utility. Ramokgopa added that the RFQ issued this week marks the first stage, with a request for proposals to follow, paving the way for construction to begin within the next two years. This isn't just about transmission lines and substations; it's about tackling economic challenges head-on and creating new growth opportunities.
News24
15-07-2025
- Business
- News24
Eskom appoints interim CEO of National Transmission Company
Eskom has moved its head of distribution to lead the National Transmission Company of South Africa (NTCSA) on an interim basis, it said on Tuesday. Monde Bala, currently group executive: Eskom Distribution, will act as chief executive officer of the NTCSA from 1 August. Bala succeeds Segomoco Scheppers, who was seconded to head up the NTCSA business in 2024 and will now return to Eskom. Agnes Mlambo will step into Bala's shoes and become acting group executive: Distribution, the power utility said. Mlambo has 17 years of experience at Eskom, has an MBA and is a qualified management accountant. She joined Eskom in 2008. 'Mlambo's appointment with her many years of experience in Eskom will significantly benefit the distribution business,' said Dan Marokane, Eskom's group chief executive. The search for a permanent candidate to fill the role of NTCSA chief executive is under way, Eskom said in May. Scheppers was shortlisted for the permanent role, but according to Eskom, the NTCSA board has not yet finalised its decision and an announcement will be made in due course. 'We owe Segomoco a huge debt of thanks for the skills he brought to bear to take the transmission business to a point of separation and creating the NTCSA as a wholly owned subsidiary of Eskom Holdings. The NTCSA serves as an important catalyst in the country's evolving energy supply industry and ending the vertical integration business model for the benefit of consumers,' Priscillah Mabelane, NTCSA board chair, said at the time.
Daily Maverick
03-07-2025
- Business
- Daily Maverick
Gridlock: The urgent imperative to increase SA's transmission capacity
South Africa is not short on ambition or potential when it comes to energy reform. The country's renewable energy market is maturing. Investment appetite is increasing and policy shifts, like the recent Electricity Regulation Act, indicate focused commitment to achieving a more competitive, sustainable and competitive energy market. However, one obstacle remains a hindrance to this momentum - transmission. Despite billions of rand committed to generation, over 20GW of renewable energy remains untapped due to a lack of grid capacity. As the country scrambles to meet rising energy demand and decarbonise its economy, transmission has emerged as the single most critical enabler of energy security and low-carbon growth. Importantly, the lack of transmission is not just a technical hurdle. It is the vital lever that is needed to unlock real energy transformation. With open access to the grid, more independent power producers (IPPs) will be able to participate and, more importantly, the increased capacity created by a robust transmission ecosystem will mean that South Africa (SA) can unleash the full potential of renewables – cutting emissions while improving reliability. The good news is that we appear to finally be on the path towards this enhanced transmission capacity. The establishment of the National Transmission Company of South Africa (NTCSA), to be spun off from Eskom, was a significant early milestone on this journey. This unbundling will enable open and transparent access to the grid for public and private generators. It will also pave the way for the trading of electricity through market platforms and wheeling arrangements, creating the foundation for a more dynamic and competitive power sector. The NTCSA coupled with the proposed Independent Transmission Projects (ITP) programme, creates a compelling case for private sector participation, not just in generation but also in grid infrastructure. However, there is still a long road ahead. The Transmission Development Plan (TDP) 2024 identifies the ambitious objective of integrating around 56GW of new generation and constructing over 14 000km of transmission lines by 2034. That is less than 10 years from now. The initial phase to 2029 targets a more realistic 5 043km of powerlines, but with only 286km expected to be completed in 2025, the gap between ambition and delivery remains immense. Also, with Eskom's financial constraints and national debt levels limiting national government's capacity to finance these builds, the success of the ITP programme will depend heavily on attracting private sector buy in, partnership and investment. Private investment in these ITP projects will require clear revenue models, predictable tariff structures and credible counterparties. The private sector needs certainty, not just around returns, but also when it comes to things like termination and non-payment recourse. South Africa could apply lessons from past public-private partnerships, like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). A stable, predictable, and transparent regulatory environment, consistently applied, is key. Investors will need absolute certainty regarding tariff structures, off-take agreements with the NTCSA, and the long-term security of their substantial investments. The government's commitment to late-stage tendering – ensuring environmental approvals and servitudes are largely in place before bids – is a sensible move to de-risk projects. Standard Bank is actively engaged in this sector, working to structure bankable transmission models. There are multiple avenues to de-risk transmission investments, and we can leverage global lessons and precedents to achieve this. Countries like Brazil and Peru have successfully deployed BOOT (Build, Own, Operate, Transfer) models to deliver thousands of kilometres of grid infrastructure. We do not see any reason why South Africa cannot do the same. Transmission infrastructure does not have to be the bottleneck; it is an enabler of energy reform. But to do that, it needs to become a national investment priority. There are encouraging signs that this may be the case. The Request for Information (RFI) that took place between December 2024 and February 2025 gathered insights from market participants on how to accelerate the development of transmission infrastructure. Further milestones include the imminent release of the full Request for Proposal (RFP), which will signal a vital shift from talking and planning to execution, and allow government to shape the legal frameworks, procurement mechanisms and support instruments that will guide the first batch of independent transmission projects to market. This is the crucial next step in shifting SA's energy reality from crisis management to long-term and sustainable resilience. DM
The South African
01-07-2025
- General
- The South African
Planned power interruptions to affect parts of Cape Town
As Eskom conducts critical infrastructure maintenance, the City of Cape Town has announced planned power interruptions in the Atlantis Industrial area. The outages will occur on Monday, 7 July, and Friday, 11 July, from 8:00 to 16:00. According to the City, the planned work forms part of essential upgrades on Eskom's NTCSA infrastructure. '[The] electricity supply interruption for essential Eskom NTCSA infrastructure maintenance,' it said in a statement. The city confirmed that only the areas indicated on the power interruption map will be affected during the specified dates and times. The maintenance is expected to proceed without delays, although residents have been advised to prepare for potential early restorations. Residents and businesses are urged to take precautions during the power interruptions. 'The electricity supply could be restored at any time and customers must please treat all electrical installations as live for the full duration of the planned maintenance work,' the city cautioned. To prevent damage caused by power surges when electricity is restored, the city has advised consumers to unplug appliances beforehand. 'Residents are encouraged to switch off appliances as a precaution,' the statement added. An area-specific outage map is available online to help affected residents plan. Acknowledging the power interruptions, the City apologised for any inconvenience the maintenance may cause. 'The City apologises for any inconvenience caused and thanks residents for their cooperation and understanding,' it stated. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Yahoo
30-06-2025
- Business
- Yahoo
Globeleq and African Rainbow Energy advance 612MWh BESS project
Globeleq and African Rainbow Energy have advanced the development of the 153 MW/612 megawatt hours (MWh) Red Sands battery energy storage system (BESS) in South Africa. The parties have reached commercial close by signing project agreements with the Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA). The 5-hectare Red Sands BESS will be located in Northern Cape and will be the largest standalone BESS plant in Africa to reach commercial close. It represents a major advancement for South Africa's power infrastructure, promising to alleviate transmission and distribution bottlenecks while bolstering grid stability across the region. The pivotal project was designated as a preferred bidder under South Africa's government-led battery energy storage independent power producer programme back in 2024. Globeleq CEO Jonathan Hoffman stated: "Commercial close on the Red Sands BESS is a landmark moment for Globeleq and for battery storage in Africa. It highlights our ability to deliver large-scale, clean energy infrastructure that meets the continent's evolving power needs. Building on over a decade of renewable energy leadership in South Africa and our Cuamba solar-plus-storage plant in Mozambique, we're integrating battery storage across our portfolio to support resilient, low-carbon power systems across Africa." By storing excess electricity during low-demand periods and releasing it when demand peaks, Red Sands BESS aims to facilitate smoother management of power flows within NTCSA's network. The installation will also offer critical ancillary services essential for maintaining grid integrity. African Rainbow Energy is a renewable energy platform owned by African Rainbow Energy and Power and Absa Bank. African Rainbow Energy CEO Brian Dames stated: "The investment in Red Sands, in partnership with Globeleq, supports our objective to utilise modern and renewable energy technologies to provide affordable electricity in South Africa and on the African continent, whilst uplifting communities. This investment also marks the substantial progress of the R3 billion commitment we have made as part of the South African investment drive." Owned by British International Investment and Norway's development finance institution Norfund, Globeleq develops, own and operates electricity generation in Africa. The company built a portfolio of independent power plants, generating 1,794MW in 17 locations across seven countries since 2002. An additional 485MW are in construction and more than 2GW of power projects are in development. "Globeleq and African Rainbow Energy advance 612MWh BESS project" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
