New infrastructure
State Grid joins South Africa's 440 billion rand power grid expansion plan battle
Seetao 2025-11-03 17:52
  • South Africa launches 440 billion rand grid upgrade, as China Power competes with global energy giants such as India's Adani Group
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A power grid expansion plan worth 440 billion rand in South Africa is sparking fierce competition among global energy companies. Indian billionaire Gautam Adani's companies and several Chinese power companies, including China Southern Power Grid and State Grid, have participated in the bidding.

As the most industrialized economy in Africa, South Africa officially launched the "Independent Transmission Project" in December 2024, planning to introduce private capital to build about 14000 kilometers of new high-voltage transmission lines to completely upgrade the old power grid that restricts power supply. According to the plan, the South African government will add 34 gigawatts of wind power and 25 gigawatts of solar power capacity in the next 14 years, making grid expansion a key prerequisite for energy transformation.

The Office of Independent Power Producers in South Africa has revealed that 17 companies or consortia have submitted pre-approval applications. In addition to the Middle East branch of Adani Electric Power Company in India, several Chinese companies such as China Southern Power Grid International Corporation and State Grid International Development Corporation are also involved. The project is currently in the pre evaluation stage and is expected to be completed by November 2025.

EDF, a French power solutions company, has confirmed its participation in the bidding and stated that it is waiting for the official bidding documents for the next stage. Both South African local enterprises SOLA Group and Mulilo New Energy Company have submitted their bid applications.

The South African Minister of Electricity stated that the first phase of grid expansion will involve bidding for the construction of 116 kilometers of transmission lines to connect over 3000 megawatts of new power generation capacity. The scale of the second phase of construction will be expanded tenfold, and the government plans to launch a credit guarantee mechanism by July 2026 and establish a special fund of up to 10 billion rand as a risk protection mechanism for energy transmission projects. Keywords: engineering construction, engineering construction news

This massive power grid construction plan will not only reshape South Africa's energy landscape, but also provide important development opportunities for global power companies, demonstrating the strong competitiveness of Chinese enterprises in the field of international energy infrastructure construction. Editor/Yang Beihua

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