South Africa turns to private sector for R390 billion electricity grid expansion

South Africa is seeking proposals to shortlist bidders for a R390 billion grid expansion project to bolster the country’s energy security.

The country’s Department of Electricity and Energy invited “experienced and committed” groups to participate in a pre-qualification process for transmission projects, it said in an advertisement.

The plan is to build 14,218 kilometres of transmission lines over the next decade.

“The private sector will design, finance, construct, operate and maintain transmission lines and substations,” it said.

Bidders must have the “necessary technical expertise, financial capacity and proven experience required to deliver transmission capacity at sa ignificant scale and within accelerated timeframes.”

The call is a step forward in resolving the problems presented by the existing grid, which is skewed toward the coal belts in the east of the country, while rapidly expanding solar and wind generation is predominantly in the western half of South Africa. To date state utility, Eskom, has had a monopoly over electricity transmission. 

Bids are to be submitted by 23 September.