South Africa’s state-owned power utility Eskom is pursuing financing for its $21 billion transmission network expansion project, aiming to integrate renewable energy sources into the national grid.
As the primary provider of 80% of South Africa’s electricity, Eskom’s expansion plans involve constructing 14,218 km of power lines by 2033 – a three-fold increase from 2012-2024 installations.
To secure financing for this capital-intensive project, Eskom is engaging in discussions with relevant government ministries and considering potential sources such as private and foreign investments.
Notably, pledges of $9 billion in climate financing were made by various nations through the Just Energy Transition Partnership in 2021 to support South Africa’s energy transition.
Subject to approval from the National Treasury for new debt, Eskom has not yet finalized its preferred funding approach.
The utility remains committed to transparent communication with stakeholders and will provide updates on funding decisions as they are made.
The Treasury’s 2024 budget review revealed that the government plans to transfer R76 billion in fiscal 2024 and R64.2 billion in fiscal 2025 to Eskom.
