1. Eskom aims to build 14,218km of power lines over the next decade.
2. South Africa’s state-owned power utility is seeking private and foreign funding options for a $21bn expansion of its transmission network.
3. France, Germany, the US, the UK, and the EU pledged $9bn in climate financing to South Africa through the Just Energy Transition Partnership.
Eskom, South Africa’s state-owned power utility, is aiming to expand its transmission network to accommodate the increasing amount of renewable generation coming online. This expansion, estimated to cost $21 billion, is necessary to meet rising demand and prevent frequent blackouts that have negatively impacted the national economy. The utility plans to construct over 14,000 kilometers of power lines by 2033, more than three times the amount installed in the previous decade.
To fund this significant expansion, Eskom is exploring private and foreign funding options, including funds pledged by wealthy nations for an energy transition. The utility is in discussions with government ministries regarding the funding of South Africa’s transmission capital-expenditure requirements. The government plans to transfer significant amounts to Eskom, and steps are being taken to establish an independent transmission project office to encourage private-sector involvement and streamline the grid’s procurement, planning, and financing processes.
In addition, $9 billion in climate financing was pledged to South Africa by various countries through the Just Energy Transition Partnership to support the country’s transition away from coal. While challenges like political infighting and lobbying by coal-benefiting businesses exist, Eskom has not yet indicated whether it will seek new debt approval from the National Treasury for its funding options.