By: Energy capital & power

South Africa’s Ministry of Finance has launched the request for pre-qualifications for the country’s first Independent Transmission Projects (ITPs). Launched by David Masondo, Deputy Minister of Finance, South Africa, the ITPs will enable private investment in high-voltage transmission infrastructure.

According to the Deputy Minister, 32 development partners have already engaged with the project, with equity commitment letters expected by Q3, 2025 and operationalization of the vehicle set for July 2026. The projects will also support the country’s National Transmission Company of South Africa’s Transmission Development Plan, which aims to build over 14,000km of new lines in the next decade.

“This reform includes the introduction of a competitive electricity market, which will allow multiple generators and traders to compete to provide electricity to consumers at the lowest cost and with the greatest efficiency,” stated Deputy Minister Masondo.

To unlock private capital, the National Treasury has designed a Credit Guarantee Vehicle aimed at de-risking early-stage ITP investments. The vehicle is targeting an initial capital raise of $500 million, with the National Treasury providing 20% in first-loss capital.

Serving as a key element of Operation Vulindlela Phase II while supporting South Africa’s broader energy market reforms, the ITP program is expected to facilitate large-scale renewable energy integration, support economic growth and enhance electricity access across the country.