By Jasper Raats
An ambitious plan to expand South Africa’s electricity transmission network could bring major benefits to the agricultural sector.
At a media briefing on Tuesday, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa announced a pilot project under the Independent Transmission Programme (ITP) to construct about 1 164 km of new transmission lines in the Northern Cape, North West and Gauteng. This infrastructure is expected to unlock more than 3 200 MW of generation capacity – primarily from renewable energy sources – in the Cape provinces.
To implement the plan, government will rely heavily on private sector funding. Ramokgopa expressed hope that the sector will mobilise up to R440 billion to support these infrastructure projects.
He also cautioned that land expropriation may become necessary if farmers and other landowners are unwilling to allow transmission infrastructure on their properties.
Transmission lines will need to cross parcels of private land – mostly in remote farming areas. He gave the example of a 12 km stretch holding up an entire 300 km project due to a single landowner’s refusal to cooperate. Government will exhaust all legal routes, but if no agreement can be reached with a land owner, expropriation with compensation will proceed.
Potentially cheaper electricity
Ministerial advisor Shaakira Karolia explained that the proposed model for private sector participation – based on successful similar projects in Brazil, India and Chile – was not expected to result in higher costs for consumers. On the contrary, the planned reverse auction system, in which the lowest bidder secures the contract, could reduce costs by as much as 40%.
The minister emphasised the importance of avoiding past mistakes, particularly project delays caused by slow environmental impact assessments and issues with transmission routes. All proposed corridors for the initial phase have already been prioritised based on existing environmental approvals and secured access rights. This means contractors will be able to begin construction swiftly once the tender processes have been finalised.
The department also aims to support local manufacturing where feasible. However, Ramokgopa cautioned against setting unrealistic expectations regarding local content. There won’t be an insistence on building everything locally at a high cost when imports are more affordable. But the strategic approach would be to develop the domestic industry and not risk job losses.
Reduced environmental impact
Dr Dion George, the Minister of Forestry, Fisheries and the Environment, welcomed the announcement as a major milestone on the path to a cleaner, greener future. He noted that this initiative aligns with his recent decision on Eskom’s pollution framework, which seeks to modernise South Africa’s energy system while minimising its environmental impact.
He emphasised that private sector participation under the ITP was essential for resolving the grid bottlenecks that have delayed the integration of solar and wind energy, particularly in the Cape provinces. He praised the interdepartmental collaboration and stressed that the R440 billion investment plan will not only ease Eskom’s financial burden but also safeguard the national budget while accelerating the rollout of renewable energy.
George said the transmission expansion was not just about infrastructure, but also about creating jobs, promoting a green economy, and providing sustainable energy to communities across South Africa.
An opportunity for job creation
The South African Wind Energy Association (SAWEA) has welcomed cabinet’s recent approval of the South African Renewable Energy Masterplan (SAREM), calling it a crucial step towards a sustainable and resilient energy future. Wind power currently accounts for nearly 40% of the R239 billion already invested in renewable energy in South Africa, underscoring its vital role in the country’s energy transition.
SAREM not only provides a clear road map for expanding renewable energy sources like wind power but also promotes local manufacturing, technological innovation, and the creation of new green jobs, says Niveshen Govender, the CEO of SAWEA. The plan presents significant opportunities for the agricultural sector, particularly in rural areas, where wind farms and related infrastructure can drive economic growth and job creation.
Also read:
• Expropriation Bill gets signature
