ENERGYRewiring the
ENERGYRewiring the futureCwayita Kweyi, an analyst in the Corporate Finance team at investment, advisory and fund-managementcompany, Tamela, examines how public-private partnerships (PPPs) are set to shift the energyinfrastructurelandscape. Kweyi is pictured below.On 4 April 2025, the South Africa TransmissionInfrastructure Investment Forum brought togetherkey decision-makers, including the Minister ofElectricity and Energy, Dr Kgosientsho Ramokgopa,alongside industry leaders, financiers and developers. Theforum laid the groundwork for PPPs in energy transmission,driven in part by the Minister’s bold and pragmatic outlook.A new chapter in infrastructure investmentThe ITP model sets the stage for 1 164km of privately financedand operated transmission lines in its first phase, unlockingover 3 200MW in the Northern Cape, the North West andGauteng. These projects are at late stage (with environmentaland land permits largely acquired), making them bid-readyand ideal for near-term capital deployment.The DoEE will manage the tender process while the NationalTransmission Company of South Africa will be the only buyer.Credit Guarantee VehicleTo make these projects more bankable, the National Treasuryis launching the Credit Guarantee Vehicle (CGV), a game-changerfor PPPs in the infrastructure space. The CGV will guaranteepayment and termination risks, easing concerns over Eskom’spast off-take reliability.The CGV is targeting circa 0-million in initial capital,backed by blended finance from global DFIs, including theWorld Bank, IFC, MIGA and JETP partners. Its AAA-target creditrating and independent governance model aim to lowerthe cost of capital, attract blended finance and buildinvestor trust, particularly for long-term Build-Own-Operate-Transfer style concessions.Independent Transmission Projects could solve thetransmission bottleneck.An urgent case for private capitalWith Bid Windows 6 and 7 leaving nearly 6GW of projectsstranded due to a lack of grid access, the transmissionbottleneck has become the Achilles’ heel of South Africa’senergy transition. The Transmission Development Plan outlinesthe need for 14 500km of new transmission lines by 2034,requiring delivery to scale up to meet the required average of1 450km/year from the current average of 300km/year.Recognising Eskom’s constrained balance sheet and limitedimplementation capacity, the Department of Electricity andEnergy (DoEE) has turned to the private sector to bridge thegap through a new model which envisages IndependentTransmission Projects (ITPs), borrowing from the RenewableEnergy Independent Power Producer Procurement Programmethat has unlocked over R300-billion in private investment.Why the private sector should pay attentionThis is not another pipe dream or policy draft. The draftElectricity Transmission Regulations, released on 3 April 2025,formalises a legal framework for transparent procurement,enforceable Transmission Service Agreements and guaranteedcost recovery. For developers, this provides commercialclarity. For investors, it reduces regulatory fog. For energycontractors and manufacturers, it’s the birth of a pipelinewith significant forecasted local spend of R390-billion overthe next decade.The roadmap is set, risk toolsare in place, and the private sectoris officially invited to power SouthAfrica’s energy future.ABOUT TAMELATamela is a black-owned and managedinvestment, corporate finance advisoryand fund-management companywhich was founded by Sydney Mhlarhiand Vusi Mahlangu in 2008.Website: www.tamela.co.zaCwayita Kweyi30 | www.opportunityonline.co.zaPHOTO: African Clean Energy Developments
The National Energy Regulator of SouthAfrica (NERSA) plays a crucial role in thecountry’s energy sector mainly through licensing,setting and approving of prices andtariffs, compliance monitoring and enforcement,and dispute resolution in the electricity,piped-gas and petroleum pipelines industries.NERSA’s goal is to be innovative and agile,ensuring that its regulation of the energyindustry contributes to the socio-economicdevelopment and prosperity of SouthAfrica.Thembani BukulaChairpersonZandile MpungoseDeputy ChairpersonNERSA is a regulatory authority establishedas a juristic person in terms of section 3 ofthe National Energy Regulator Act, 2004 (ActNo. 40 of 2004). Its mandate is to regulate theelectricity, piped-gas and petroleum pipelinesindustries in terms of the Electricity RegulationAct, 2006 (Act No. 4 of 2006), Gas Act, 2001(Act No. 48 of 2001) and Petroleum PipelinesAct, 2003 (Act No. 60 of 2003).Adv Nomalanga SitholeChief Executive Officer andFull-Time Regulator MemberNomfundo MasetiFull-Time RegulatorMember: Piped-GasNERSA’s mandate is further derived fromwritten government policies and regulationsissued by the Minister of Electricity and Energy.It is expected to perform the necessaryregulatory actions in anticipation of and/or inresponse to the changing circumstances inthe energy industry.Muzi MkhizeFull-Time RegulatorMember: PetroleumPipelinesThembeka SemanePart-Time RegulatorMemberThe Minister of Electricity and Energy appointsMembers of the Energy Regulator,comprising Part-Time (Non-Executive) andFull-Time (Executive) Regulator Members,including the Chief Executive Officer (CEO).The Energy Regulator is supported by staffunder the direction of the CEO.Fungai SibandaPart-Time RegulatorMemberPrecious SibiyaPart-Time RegulatorMemberAddress:Kulawula House, 526 Madiba Street, Arcadia, 0083P O Box 40343, Arcadia, 0007Tel: +27(0)12 401 4600 I Email: info@nersa.org.zaFax: +27(0)12 401 4700 IWebsite: www.nersa.org.za@NERSA_ZA@NERSAZA
