SA moves to unlock private capital for grids

From the newsletter

South Africa’s government has set up a credit guarantee vehicle with an initial $116 million to boost large-scale private investment in transmission line expansion. The goal is to ease financial barriers that have slowed new grid connections. The move comes as the country prepares to roll out the first batch of independent transmission projects next year.

• Transmission infrastructure has largely depended on public funding and utility balance sheets. But this has not kept pace with renewables growth ambitions, forcing many African countries to adopt blended financing models.

• South Africa has an ambitious plan to build 14,500 km of new transmission lines via independent transmission projects (ITP) over the next decade. Funding of $25.7 billion may be available to the private sector to build and operate lines.

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