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Individual Reform: Transmission reform 2026 - 2027

Effective, the NTCSA is now operational

Curtailment protocol

No data available for the deliverable: Curtailment protocol

No data available for the deliverable: Curtailment protocol

No data available for the deliverable: Curtailment protocol

No data available for the deliverable: Curtailment protocol

No data available for the deliverable: Curtailment protocol

No data available for the deliverable: Curtailment protocol

Summary

The curtailment framework was approved by Nersa in April 2025. The process began on 28 January 2024 when Eskom released an addendum on the Generation Connection Capacity Assessment (GCCA). The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and indicates the additional capacity that has been made available in the Eastern Cape and Western Cape through curtailment. In October 2025, the National Transmission Company of South Africa (NTCSA) said that the 4% share of curtailment allowed by Nersa would free up 1,580MW of grid capacity in the provinces (1,180MW in the Western Cape and 400MW in the Eastern Cape).

Canvas not supported.

Is it working?

Effectiveness to be determined once curtailment allocations are made. Only wind projects in the Eastern and Western Cape provinces will qualify.

Actions

The curtailment framework was approved by Nersa in April 2025. It provides for a compensation mechanism for independent power projects that had to scale back output.The NTCSA held a workshop for IPPs on how curtailment would work. It also issued a practice note. NTCSA CEO Monde Bala told delegates that the entity would start with the allocation process from November 2025 and would report to Nersa every six months (over the three-year period) about the implementation of congestion curtailment.

Are there plans?

No further plans; the curtailment framework was approved by Nersa and applies from 1 April 2025 to 31 March 2028. If grid capacity constraints persist, the NTCSA plans to apply to the regulator to allow for more curtailment.

Is it on the agenda?

Yes, the NTCSA applied to Nersa which granted approval.

Goals

Curtailment framework to be put in place to provide additional grid capacity to connect new generation projects.

Documents

References

Departments / Govt Institutions

Department of Electricity and Energy National Transmission Company of South Africa

Summary

The curtailment framework was approved by Nersa in April 2025. The process began on 28 January 2024 when Eskom released an addendum on the Generation Connection Capacity Assessment (GCCA). The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and indicates the additional capacity that has been made available in the Eastern Cape and Western Cape through curtailment. In October 2025, the National Transmission Company of South Africa (NTCSA) said that the 4% share of curtailment allowed by Nersa would free up 1,580MW of grid capacity in the provinces (1,180MW in the Western Cape and 400MW in the Eastern Cape).

Canvas not supported.

Is it working?

Effectiveness to be determined once curtailment allocations are made. Only wind projects in the Eastern and Western Cape provinces will qualify.

Actions

The curtailment framework was approved by Nersa in April 2025. It provides for a compensation mechanism for independent power projects that had to scale back output.The NTCSA held a workshop for IPPs on how curtailment would work. It also issued a practice note. NTCSA CEO Monde Bala told delegates that the entity would start with the allocation process from November 2025 and would report to Nersa every six months (over the three-year period) about the implementation of congestion curtailment.

Are there plans?

No further plans; the curtailment framework was approved by Nersa and applies from 1 April 2025 to 31 March 2028. If grid capacity constraints persist, the NTCSA plans to apply to the regulator to allow for more curtailment.

Is it on the agenda?

Yes, the NTCSA applied to Nersa which granted approval.

Goals

Curtailment framework to be put in place to provide additional grid capacity to connect new generation projects.

Documents

References

Departments / Govt Institutions

Department of Electricity and Energy National Transmission Company of South Africa

Summary

The curtailment framework was approved by Nersa in April 2025. The process began on 28 January 2024 when Eskom released an addendum on the Generation Connection Capacity Assessment (GCCA). The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and indicates the additional capacity that has been made available in the Eastern Cape and Western Cape through curtailment. In October 2025, the National Transmission Company of South Africa (NTCSA) said that the 4% share of curtailment allowed by Nersa would free up 1,580MW of grid capacity in the provinces (1,180MW in the Western Cape and 400MW in the Eastern Cape).

Canvas not supported.

Is it working?

Effectiveness to be determined once curtailment allocations are made. Only wind projects in the Eastern and Western Cape provinces will qualify.

Actions

The curtailment framework was approved by Nersa in April 2025. It provides for a compensation mechanism for independent power projects that had to scale back output.The NTCSA held a workshop for IPPs on how curtailment would work. It also issued a practice note. NTCSA CEO Monde Bala told delegates that the entity would start with the allocation process from November 2025 and would report to Nersa every six months (over the three-year period) about the implementation of congestion curtailment.

Are there plans?

No further plans; the curtailment framework was approved by Nersa and applies from 1 April 2025 to 31 March 2028. If grid capacity constraints persist, the NTCSA plans to apply to the regulator to allow for more curtailment.

Is it on the agenda?

Yes, the NTCSA applied to Nersa which granted approval.

Goals

Curtailment framework to be put in place to provide additional grid capacity to connect new generation projects.

Documents

References

Departments / Govt Institutions

Department of Electricity and Energy National Transmission Company of South Africa

Analyst: Lameez Hyman
Status: in-progress
Last Updated:
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    Establishing the Independent Transmission Project (ITP) procurement office

    Summary

    On 28 January 2024, Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose of indicating additional capacity that has been made available in the Eastern Cape and Western Cape under curtailment. By accepting a reasonable share of no more than 10% of curtailment, 3,470MW of additional generation capacity can be connected to the grid almost immediately, with 2,680MW in the Western Cape and 790MW in the Eastern Cape,

    Canvas not supported.

    Is it working?

    To be determined

    Actions

    Release of the curtailment framework and GCCA addendum.

    Are there plans?

    To obtain the framework approval from Nersa.

    Is it on the agenda?

    Yes

    Goals

    Curtailment framework to provide additional grid capacity, potentially salvaging BW7.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    On 28 January 2024, Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose of indicating additional capacity that has been made available in the Eastern Cape and Western Cape under curtailment. By accepting a reasonable share of no more than 10% of curtailment, 3,470MW of additional generation capacity can be connected to the grid almost immediately, with 2,680MW in the Western Cape and 790MW in the Eastern Cape,

    Canvas not supported.

    Is it working?

    To be determined

    Actions

    Release of the curtailment framework and GCCA addendum.

    Are there plans?

    To obtain the framework approval from Nersa.

    Is it on the agenda?

    Yes

    Goals

    Curtailment framework to provide additional grid capacity, potentially salvaging BW7.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    The decision on the curtailment was expected to be delivered in November 2024. Nersa has completed public hearings following the release of curtailment framework for public comments in July 2024. The process began on 28 January 2024 when Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose of indicating additional capacity that has been made available in the Eastern Cape and Western Cape under curtailment. By accepting a reasonable share of no more than 10% of curtailment, 3,470MW of additional generation capacity can be connected to the grid almost immediately, with 2,680MW in the Western Cape and 790MW in the Eastern Cape.

    Canvas not supported.

    Is it working?

    Not yet in place, effectiveness to be determined.

    Actions

    Release of the curtailment framework for public comments.

    Are there plans?

    In process - to obtain the framework approval from Nersa.

    Is it on the agenda?

    Yes

    Goals

    Curtailment framework to provide additional grid capacity, potentially salvaging BW7.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    The decision on the curtailment was expected to be delivered in November 2024. Nersa has completed public hearings following the release of curtailment framework for public comments in July 2024. The process began on 28 January 2024 when Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose of indicating additional capacity that has been made available in the Eastern Cape and Western Cape under curtailment. By accepting a reasonable share of no more than 10% of curtailment, 3,470MW of additional generation capacity can be connected to the grid almost immediately, with 2,680MW in the Western Cape and 790MW in the Eastern Cape.

    Canvas not supported.

    Is it working?

    Not yet in place, effectiveness to be determined.

    Actions

    Release of the curtailment framework for public comments.

    Are there plans?

    In process - to obtain the framework approval from Nersa.

    Is it on the agenda?

    Yes

    Goals

    Curtailment framework to provide additional grid capacity, potentially salvaging BW7.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    The decision on the curtailment was expected to be delivered in November 2024. Nersa has completed public hearings following the release of curtailment framework for public comments in July 2024. The process began on 28 January 2024 when Eskom released an addendum on the GCCA. The GCCA 2025 Addendum provides the 2025 connection capacity with curtailment for energy generators and serves as an addendum to the GCCA 2025 published in October 2023, for the purpose of indicating additional capacity that has been made available in the Eastern Cape and Western Cape under curtailment. By accepting a reasonable share of no more than 10% of curtailment, 3,470MW of additional generation capacity can be connected to the grid almost immediately, with 2,680MW in the Western Cape and 790MW in the Eastern Cape.

    Canvas not supported.

    Is it working?

    Not yet in place, effectiveness to be determined.

    Actions

    Release of the curtailment framework for public comments.

    Are there plans?

    In process - to obtain the framework approval from Nersa.

    Is it on the agenda?

    Yes

    Goals

    Curtailment framework to provide additional grid capacity, potentially salvaging BW7.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    To facilitate private investments and development of transmission infrastructure, an office similar to the IPPO needs to be established. This will be known as the Independent Transmission Project Office.

    Canvas not supported.

    Is it working?

    Not yet in effect.

    Actions

    The draft concept paper to establish the ITPO is expected to be submitted to Cabinet for approval in 2025/26. Thereafter the ITPO will be established.

    Are there plans?

    According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate and transfer (BOT) model.

    Is it on the agenda?

    Plans have been announced but an ITP office not yet established.

    Goals

    An Independent Transmission Project Office will be formed to procure new transmission capacity. It will function as the Independent Power Producer Procurement Office did to procure generation capacity from the private sector.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    To facilitate private investments and development of transmission infrastructure, an office similar to the Independent Power Producer Office was to be established. This will be known as the Independent Transmission Project Office. The Department of Electricity and Energy, which is leading the process, told parliament's portfolio committee on electricity and energy in November 2025 that it had not completed stakeholder engagements on a concept paper for the ITP office. The department instead intends to assess the outcomes of the first bid window of the ITP procurement programme, being facilitated by the IPP Office. This will help the department determine if a separate ITP office must be established, or if a single, consolidated energy infrastructure procurement office would be preferable.
    rn

    Canvas not supported.

    Is it working?

    Not yet in effect and subject to re-evaluation based on the outcomes of the first bid window of the ITP procurement programme facilitated by the IPP Office.

    Actions

    The draft concept paper to establish the ITPO was expected to be submitted to Cabinet for approval in 2025/26, but the department of Electricity and Energy decided not to go ahead with a stakeholder consultation process on the paper, pending the outcomes of the first bid window of the ITP procurement programme.For this reason, the first bid window of the ITP procurement programme must run its course.The department is also working on a five- to 10-year pipeline detailing the frequency of future bid windows and how the programme will work. This is due to be released in the first quarter of 2026.

    Are there plans?

    Electricity Minister Kgosientsho Ramokgopa previously indicated the government intends to establish an ITP Office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate and transfer (BOT) model. But this is subject to evaluation. Currently the ITP programme is being facilitated by the IPP Office.
    rnA team within the department is also working on a pipeline for future bid windows of the ITP programme, which may also inform a decision to move forward with the ITP Office or not.

    Is it on the agenda?

    Plans were announced, but this is subject to an evaluation by the Department of Electricity and Energy based on the outcomes of the first bid window of the ITP procurement programme. The ITP Office has not been established. However the IPP Office is conducting the first bid window of the ITP procurement programme.

    Goals

    An Independent Transmission Project Office will be formed to procure new transmission capacity. It will function as the Independent Power Producer Procurement (IPP) Office did to procure generation capacity from the private sector.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    To facilitate private investments and development of transmission infrastructure, an office similar to the Independent Power Producer Office is to be established. This will be known as the Independent Transmission Project Office. The Department of Electricity and Energy, which is leading the process, told parliament's portfolio committee on electricity and energy in November 2025 that it had not completed stakeholder engagements on a concept paper for the ITP office. The department instead intends to assess the outcomes of the first bid window of the ITP procurement programme, being facilitated by the IPP Office. This will help the department determine if a separate ITP office must be established, or if a single, consolidated energy infrastructure procurement office would be preferable.

    Canvas not supported.

    Is it working?

    Not yet in effect and subject to re-evaluation based on the outcomes of the first bid window of the ITP procurement programme facilitated by the IPP Office.

    Actions

    The draft concept paper to establish the ITPO was expected to be submitted to Cabinet for approval in 2025/26, but the department of Electricity and Energy decided not to go ahead with a stakeholder consultation process on the paper, pending the outcomes of the first bid window of the ITP procurement programme.For this reason, the first bid window of the ITP procurement programme must run its course.The department is also working on a five- to 10-year pipeline detailing the frequency of future bid windows and how the programme will work. This is due to be released in the first quarter of 2026.

    Are there plans?

    Electricity Minister Kgosientsho Ramokgopa previously indicated the government intends to establish an ITP Office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate and transfer (BOT) model. But this is subject to evaluation. Currently the ITP programme is being facilitated by the IPP Office.
    rnA team within the department is also working on a pipeline for future bid windows of the ITP programme, which may also inform a decision to move forward with the ITP Office or not.

    Is it on the agenda?

    Plans were announced, but this is subject to an evaluation by the Department of Electricity and Energy based on the outcomes of the first bid window of the ITP procurement programme. The ITP Office has not been established. However the IPP Office is conducting the first bid window of the ITP procurement programme.

    Goals

    An Independent Transmission Project Office will be formed to procure new transmission capacity. It will function as the Independent Power Producer Procurement (IPP) Office did to procure generation capacity from the private sector.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Summary

    To facilitate private investments and development of transmission infrastructure, an office similar to the Independent Power Producer Office is to be established. This will be known as the Independent Transmission Project Office. The Department of Electricity and Energy, which is leading the process, told parliament's portfolio committee on electricity and energy in November 2025 that it had not completed stakeholder engagements on a concept paper for the ITP office. The department instead intends to assess the outcomes of the first bid window of the ITP procurement programme, being facilitated by the IPP Office. This will help the department determine if a separate ITP office must be established, or if a single, consolidated energy infrastructure procurement office would be preferable.

    Canvas not supported.

    Is it working?

    Not yet in effect and subject to re-evaluation based on the outcomes of the first bid window of the ITP procurement programme facilitated by the IPP Office.

    Actions

    The draft concept paper to establish the ITPO was expected to be submitted to Cabinet for approval in 2025/26, but the department of Electricity and Energy decided not to go ahead with a stakeholder consultation process on the paper, pending the outcomes of the first bid window of the ITP procurement programme.For this reason, the first bid window of the ITP procurement programme must run its course.The department is also working on a five- to 10-year pipeline detailing the frequency of future bid windows and how the programme will work. This is due to be released in the first quarter of 2026.

    Are there plans?

    Electricity Minister Kgosientsho Ramokgopa previously indicated the government intends to establish an ITP Office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate and transfer (BOT) model. But this is subject to evaluation. Currently the ITP programme is being facilitated by the IPP Office.A team within the department is also working on a pipeline for future bid windows of the ITP programme, which may also inform a decision to move forward with the ITP Office or not.

    Is it on the agenda?

    Plans were announced, but this is subject to an evaluation by the Department of Electricity and Energy based on the outcomes of the first bid window of the ITP procurement programme. The ITP Office has not been established. However the IPP Office is conducting the first bid window of the ITP procurement programme.

    Goals

    An Independent Transmission Project Office will be formed to procure new transmission capacity. It will function as the Independent Power Producer Procurement (IPP) Office did to procure generation capacity from the private sector.

    References

    Departments / Govt Institutions

    Department of Electricity and Energy

    Analyst: Lameez Hyman
    Status: in-progress
    Last Updated:
    Next Update:
    Got an Update? Follow this reform
    Reform Area:
    Reform:

      If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

      Full unbundling of NTCSA

      Summary

      Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the merger and the operationalisation of the NTCSA.The NTCSA is now on course to be a duly constituted separate, distinct, and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes- Once the transmission system operator is operational

      Actions

      The passing of the ERA bill

      Are there plans?

      The next steps of spinning NTCSA out as a separate company are only broadly handwaved at by DPE, MoE and NT even – there is no timeline and there are no commitments of any firm nature in place. After DPE is eventually dissolved the (suspected/forecast) combined DMRE/MoE will need to grasp this nettle as will PSEC (the presidential state enterprise council) and NT via pressure it exudes through the bailout. Additionally, the Lazard structure remains and has to be dismantled

      Is it on the agenda?

      The complete unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure

      Goals

      Unbundling of NTCSA from Eskom has been completedrn https://www.news24.com/fin24/economy/eskom-unbundling-reaches-major-milestone-transmission-company-is-good-to-go-20240404

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      As of 01 July 2024, the NTCSA is operational. Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the operationalisation of the NTCSA. The NTCSA is now on course to be a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes

      Actions

      The operationalisation of the NTCSA

      Are there plans?

      No further plans as the reform is complete.

      Is it on the agenda?

      Yes, part of the unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure.

      Goals

      Unbundle the NTCSA from Eskom -- completed.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the operationalisation of the NTCSA. The NTCSA is now on course to be a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes.

      Actions

      The operationalisation of the NTCSA.

      Are there plans?

      No further plans as the reform is complete.

      Is it on the agenda?

      Yes, part of the unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure.

      Goals

      Unbundle the NTCSA from Eskom -- complete.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the operationalisation of the NTCSA. The NTCSA is now on course to be a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes.

      Actions

      The operationalisation of the NTCSA.

      Are there plans?

      No further plans as the reform is complete.

      Is it on the agenda?

      Yes, part of the unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure.

      Goals

      Unbundle the NTCSA from Eskom -- complete.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the operationalisation of the NTCSA. The NTCSA is now on course to be a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes.

      Actions

      The operationalisation of the NTCSA.

      Are there plans?

      No further plans as the reform is complete.

      Is it on the agenda?

      Yes, part of the unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure.

      Goals

      Unbundle the NTCSA from Eskom -- complete.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. Eskom and the National Transmission Company of South Africa (NTCSA) have satisfied all the requirements necessary to effect the operationalisation of the NTCSA. The NTCSA is now on course to be a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Canvas not supported.

      Is it working?

      Yes.

      Actions

      The operationalisation of the NTCSA.

      Are there plans?

      No further plans as the reform is complete.

      Is it on the agenda?

      Yes, part of the unbundling of Eskom and the liberalisation of the electricity market, moving away from the vertically integrated structure to a horizontal structure.

      Goals

      Unbundle the NTCSA from Eskom -- complete.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. Eskom and the NTCSA have satisfied all the requirements necessary to effect the legal separation and operationalisation of the entity. After the Electricity Regulation Act came into effect in January 2025, the NTCSA was officially established as the transmission system operator. It is working toward becoming a financial sustainable business while also implementing its Transmission Development Plan.

      Canvas not supported.

      Is it working?

      It is a work in progress. A lot of questions still unanswered about its ability to operate independently from Eskom especially as it has to raise finance through the holding company. The NTCSA has submitted and had its five-year (2026-2030) corporate plan approved by the shareholder (DoEE). It told Parliament in June that it also submitted its FY 2025 financial statments (unaudited) within required timelines to the shareholder. It is still in search of a permanent CEO.

      Actions

      NTCSA is implementing its corporate strategy and has has submitted and had its five-year (2026-2030) corporate plan approved by the shareholder (DoEE) NTCSA must also exit Eskom's Lazard structure, as it limits its ability to source funding to develop more transmission lines, because it has the same credit worthiness as the parent company, Eskom.

      Are there plans?

      Work still under way to have the NTCSA implement its corporate strategy which includes becoming a financially sustainable business by securing sustainable revenues and cost-reflective tariffs etc and to implement digital transformation with independent IT systems. This reform also supports the country's objectives of a competitive and liberalised electricity market -- eg, it must set up market operator, market code and market platforms.

      Is it on the agenda?

      Yes, the Electricity Amendment Act which came into effect in January 2025 gives effect to Eskom's unbundling and supports the liberalisation of the electricity market.

      Goals

      To establish the NTCSA as a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. The NTCSA has satisfied all the requirements necessary to effect the legal separation and operationalisation of the entity. After the Electricity Regulation Amendment (ERA) Act came into effect in January 2025, the NTCSA was officially established as the transmission system operator. In his state of the nation address in February 2026, President Cyril Ramaphosa overruled Eskom and the Department of Electricity and Energy's unbundling strategy and backed Operation Vulindlela and Treasury’s approach to establish an independent Transmission System Operator with asset ownership. The alternative (a TSO without assets) would remain financially and operationally dependent on Eskom, weakening its credibility with investors and limiting its ability to raise capital and negatively affect grid expansion. A dedicated task team under the National Energy Crisis Committee (Necom) will report to the president within three months, after developing clear proposals and timelines for the phased implementation of a fully independent transmission entity, with transmission assets transferred out of Eskom.

      Canvas not supported.

      Is it working?

      It is a work in progress. The President's Sona announcement provided much needed clarity on the future unbundling of the NTCSA, and establishment of the TSO due to be completed by 2028, when he leaves office. This move reasserts central authority over the unbundling process. The outcomes of the task team in the next three months will provide next steps on actions to be taken.

      Actions

      A dedicated task team under Necom, will report to the president in three months with next steps and timelines for the unbundling of the TSO. A cabinet-endorsed roadmap outlining Eskom's end state across operations, balance sheet and functions is needed to inform the unbundling process, as well as identify responsible actors.

      The Lazard upward guarantee between the NTCSA and Eskom Holdings must also be resolved as it hinders the establishment of an independent transmission entity. The appointment of independent transaction advisors to National Treasury is key.

      Are there plans?

      A task team that involves the minister of electricity and energy, the minister of finance and the minister in the presidency
      rnwill have to report to the president in three months with clear proposals and timelines for the implementation of a fully independent TSO (with transmission assets) in the next 18 months, before Ramaphosa leaves office. We expect the day-to-day work to be steered by National Treasury and Operation Vulindlela. This intervention should provide more clarity on the future unbundling for creditors and other electricity market participants.
      rn
      rnEskom has issued a statement indicating it will support the task team.
      rn
      rnThe Lazard upward guarantee structure must still be resolved; no plans have been made public for this aspect of the unbundling as yet and will likely be informed by the work of the task team.

      Is it on the agenda?

      The Electricity Amendment Act, which came into effect in January 2025, gives effect to Eskom's unbundling and supports the liberalisation of the electricity market. The President further emphasised the establishment of an independent transmission entity in his Sona 2026.

      Goals

      To establish the NTCSA as a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Summary

      The NTCSA has been operational since 1 July 2024. The NTCSA has satisfied all the requirements necessary to effect the legal separation and operationalisation of the entity. After the Electricity Regulation Amendment (ERA) Act came into effect in January 2025, the NTCSA was officially established as the transmission system operator. In his state of the nation address in February 2026, President Cyril Ramaphosa overruled Eskom and the Department of Electricity and Energy's unbundling strategy and backed Operation Vulindlela and Treasury’s approach to establish an independent Transmission System Operator with asset ownership. The alternative (a TSO without assets) would remain financially and operationally dependent on Eskom, weakening its credibility with investors and limiting its ability to raise capital and negatively affect grid expansion. A dedicated task team under the National Energy Crisis Committee (Necom) will report to the president within three months, after developing clear proposals and timelines for the phased implementation of a fully independent transmission entity, with transmission assets transferred out of Eskom.

      Canvas not supported.

      Is it working?

      It is a work in progress. The President's Sona announcement provided much needed clarity on the future unbundling of the NTCSA, and establishment of the TSO due to be completed by 2028, when he leaves office. This move reasserts central authority over the unbundling process. The outcomes of the task team in the next three months will provide next steps on actions to be taken.

      Actions

      A dedicated task team under Necom, will report to the president in three months with next steps and timelines for the unbundling of the TSO. A cabinet-endorsed roadmap outlining Eskom's end state across operations, balance sheet and functions is needed to inform the unbundling process, as well as identify responsible actors.

      The Lazard upward guarantee between the NTCSA and Eskom Holdings must also be resolved as it hinders the establishment of an independent transmission entity. The appointment of independent transaction advisors to National Treasury is key.

      Are there plans?

      A task team that involves the minister of electricity and energy, the minister of finance and the minister in the presidencywill have to report to the president in three months with clear proposals and timelines for the implementation of a fully independent TSO (with transmission assets) in the next 18 months, before Ramaphosa leaves office. We expect the day-to-day work to be steered by National Treasury and Operation Vulindlela. This intervention should provide more clarity on the future unbundling for creditors and other electricity market participants.

      Eskom has issued a statement indicating it will support the task team.

      The Lazard upward guarantee structure must still be resolved; no plans have been made public for this aspect of the unbundling as yet and will likely be informed by the work of the task team.

      Is it on the agenda?

      The Electricity Amendment Act, which came into effect in January 2025, gives effect to Eskom's unbundling and supports the liberalisation of the electricity market. The President further emphasised the establishment of an independent transmission entity in his Sona 2026.

      Goals

      To establish the NTCSA as a duly constituted separate, distinct and wholly owned subsidiary of Eskom Holdings as per the provision of the Companies Act.

      Documents

      References

      Departments / Govt Institutions

      Department of Electricity and Energy Eskom Holdings National Treasury Operation Vulindlela

      Analyst: Lameez Hyman
      Status: in-progress
      Last Updated:
      Next Update:
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      Reform:

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        Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        No data available for the deliverable: Grid Capacity Allocation Rules

        Summary

        Eskom's Interim Grid Capacity Allocation Rules (IGCAR), to deal with grid constraints, prompted the National Energy Regulator of South Africa (Nersa) to lead a process to develop a permanent set of grid Capacity Allocation Rules that all network service providers would have to abide by. The development of the rules involved a public consultation process and were approved in November 2025. Nersa has since published the rules aimed at ensuring fair and non-discriminatory grid access.

        Canvas not supported.

        Is it working?

        Still to be gazetted so not yet in effect. The rules have not been contested and focus on ensuring non-discriminatory access and equal treatment for all projects.The rules reaffirm the “first ready, first served” principle that Eskom introduced to ensure scarce grid capacity is not hoarded by inactive projects.The rules also define “first ready” in detail and set clear readiness criteria. They also removed earlier design and construction contract requirements which stakeholders in public consultation processes warned were impractical and not a true test of project readiness.The rules introduce three milestones which now structure the queueing process: pre-feasibility, capacity reservation and capacity allocation.The revised rules set out how projects enter the queue, how they progress, and how they may move up or down based on readiness.This is aimed at ensuring a central, transparent and enforceable rule set to ensure consistent and fair grid access.

        Actions

        The rules have been developed and must be gazetted before they can be applied by network service providers like Eskom.

        Are there plans?

        The rules were a priority of Nersa, supported by the Department of Electricity and Energy (DoEE) as part of reforms needed to establish a competitive electricity market. The DoEE must gazette the rules. Once enforceable, Nersa must conduct monitoring to ensure compliance.

        Is it on the agenda?

        Yes, development of the rules was prompted by the IGCAR and part of the reforms overseen by Operation Vulindlela.

        Goals

        To establish Grid Capacity Allocation Rules that ensure ensure fair, transparent and non-discriminatory to access to the grid. The rules are part of overall efforts to establish a competitive electricity market, providing regulatory certainty that drives investment.

        Documents

        References

        Departments / Govt Institutions

        Department of Electricity and Energy National Energy Regulator of South Africa Operation Vulindlela

        Summary

        Eskom's Interim Grid Capacity Allocation Rules (IGCAR), to deal with grid constraints, prompted the National Energy Regulator of South Africa (Nersa) to lead a process to develop a permanent set of grid Capacity Allocation Rules that all network service providers would have to abide by. The development of the rules involved a public consultation process and were approved in November 2025. Nersa has since published the rules aimed at ensuring fair and non-discriminatory grid access.

        Canvas not supported.

        Is it working?

        Still to be gazetted so not yet in effect. The rules have not been contested and focus on ensuring non-discriminatory access and equal treatment for all projects.The rules reaffirm the “first ready, first served” principle that Eskom introduced to ensure scarce grid capacity is not hoarded by inactive projects.The rules also define “first ready” in detail and set clear readiness criteria. They also removed earlier design and construction contract requirements which stakeholders in public consultation processes warned were impractical and not a true test of project readiness.The rules introduce three milestones which now structure the queueing process: pre-feasibility, capacity reservation and capacity allocation.The revised rules set out how projects enter the queue, how they progress, and how they may move up or down based on readiness.This is aimed at ensuring a central, transparent and enforceable rule set to ensure consistent and fair grid access.

        Actions

        The rules have been developed and must be gazetted before they can be applied by network service providers like Eskom.

        Are there plans?

        The rules were a priority of Nersa, supported by the Department of Electricity and Energy (DoEE) as part of reforms needed to establish a competitive electricity market. The DoEE must gazette the rules. Once enforceable, Nersa must conduct monitoring to ensure compliance.

        Is it on the agenda?

        Yes, development of the rules was prompted by the IGCAR and part of the reforms overseen by Operation Vulindlela.

        Goals

        To establish Grid Capacity Allocation Rules that ensure ensure fair, transparent and non-discriminatory to access to the grid. The rules are part of overall efforts to establish a competitive electricity market, providing regulatory certainty that drives investment.

        Documents

        References

        Departments / Govt Institutions

        Department of Electricity and Energy National Energy Regulator of South Africa Operation Vulindlela

        Summary

        Eskom's Interim Grid Capacity Allocation Rules (IGCAR), to deal with grid constraints, prompted the National Energy Regulator of South Africa (Nersa) to lead a process to develop a permanent set of grid Capacity Allocation Rules that all network service providers would have to abide by. The development of the rules involved a public consultation process and were approved in November 2025. Nersa has since published the rules aimed at ensuring fair and non-discriminatory grid access.

        Canvas not supported.

        Is it working?

        Still to be gazetted so not yet in effect. The rules have not been contested and focus on ensuring non-discriminatory access and equal treatment for all projects.The rules reaffirm the “first ready, first served” principle that Eskom introduced to ensure scarce grid capacity is not hoarded by inactive projects.The rules also define “first ready” in detail and set clear readiness criteria. They also removed earlier design and construction contract requirements which stakeholders in public consultation processes warned were impractical and not a true test of project readiness.The rules introduce three milestones which now structure the queueing process: pre-feasibility, capacity reservation and capacity allocation.The revised rules set out how projects enter the queue, how they progress, and how they may move up or down based on readiness.This is aimed at ensuring a central, transparent and enforceable rule set to ensure consistent and fair grid access.

        Actions

        The rules have been developed and must be gazetted before they can be applied by network service providers like Eskom.

        Are there plans?

        The rules were a priority of Nersa, supported by the Department of Electricity and Energy (DoEE) as part of reforms needed to establish a competitive electricity market. The DoEE must gazette the rules. Once enforceable, Nersa must conduct monitoring to ensure compliance.

        Is it on the agenda?

        Yes, development of the rules was prompted by the IGCAR and part of the reforms overseen by Operation Vulindlela.

        Goals

        To establish Grid Capacity Allocation Rules that ensure ensure fair, transparent and non-discriminatory to access to the grid. The rules are part of overall efforts to establish a competitive electricity market, providing regulatory certainty that drives investment.

        Documents

        References

        Departments / Govt Institutions

        Department of Electricity and Energy National Energy Regulator of South Africa Operation Vulindlela

        Analyst: Lameez Hyman
        Status: in-progress
        Last Updated:
        Next Update:
        Got an Update? Follow this reform
        Reform Area:
        Reform:

          If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

          Independent Transmission Project (ITP) funding model/ Credit Guarantee Vehicle

          Summary

          To facilitate private investments in transmission, an office similar to the IPPO needs to be established.

          Canvas not supported.

          Is it working?

          To be determined

          Actions

          The intention to set up an ITP office.

          Are there plans?

          To set up a special purpose vehicle within the existing development finance institutions. According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate, and transfer (BOT) model.

          Is it on the agenda?

          Plans announced butITP office not yet established.

          Goals

          Based on the minister of electricity's announcement, the ITP procurement office will be formed as a special purpose vehicle to procure transmission infrastructure.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          To facilitate private investments in transmission, an office similar to the IPPO needs to be established.

          Canvas not supported.

          Is it working?

          To be determined

          Actions

          The intention to set up an ITP office.

          Are there plans?

          To set up a special purpose vehicle within the existing development finance institutions. According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate, and transfer (BOT) model.

          Is it on the agenda?

          Plans announced butITP office not yet established.

          Goals

          Based on the minister of electricity's announcement, the ITP procurement office will be formed as a special purpose vehicle to procure transmission infrastructure.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          To facilitate private investments in transmission, an office similar to the IPPO needs to be established.

          Canvas not supported.

          Is it working?

          To be determined

          Actions

          The intention to set up an ITP office.

          Are there plans?

          To set up a special purpose vehicle within the existing development finance institutions. According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate, and transfer (BOT) model.

          Is it on the agenda?

          Plans announced but ITP office not yet established.

          Goals

          Based on the minister of electricity's announcement, the ITP procurement office will be formed as a special purpose vehicle to procure transmission infrastructure.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          To facilitate private investments in transmission, an office similar to the IPPO needs to be established.

          Canvas not supported.

          Is it working?

          To be determined

          Actions

          The intention to set up an ITP office.

          Are there plans?

          To set up a special purpose vehicle within the existing development finance institutions. According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate, and transfer (BOT) model.

          Is it on the agenda?

          Plans announced but ITP office not yet established.

          Goals

          Based on the minister of electricity's announcement, the ITP procurement office will be formed as a special purpose vehicle to procure transmission infrastructure.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          To facilitate private investments in transmission, an office similar to the IPPO needs to be established.

          Canvas not supported.

          Is it working?

          To be determined

          Actions

          The intention to set up an ITP office.

          Are there plans?

          To set up a special purpose vehicle within the existing development finance institutions. According to Electricity Minister Kgosientsho Ramokgopa, the government intends to establish an independent transmission project office, which will be located at either the Development Bank of Southern Africa (DBSA) or the Industrial Development Corporation (IDC), to procure new transmission capacity under a build, operate, and transfer (BOT) model.

          Is it on the agenda?

          Plans announced but ITP office not yet established.

          Goals

          Based on the minister of electricity's announcement, the ITP procurement office will be formed as a special purpose vehicle to procure transmission infrastructure.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          Eskom's Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt. To address this the development of a Credit Guarantee Vehicle led by Treasury and the World Bank is underway to derisk transmission projects and crowd in more finance. Aims are for the electricity transmission infrastructure to be procured or developed by private sector players - who would carry the costs on their balance sheets. The first phase of the procurement process (or a Request for Qualifications) was launched by the Electricity and Energy Department in July. To crowd in private sector finance National Treasury is partnering with the World Bank to develop a Credit Guarantee vehicle (CGV) that is needed to derisk transmission infrastructure projects to encourage private sector participation.

          Canvas not supported.

          Is it working?

          To be determined. Outcomes of the RFQs are still to be announced and the RFP is still to be launched. The successful launch of the CGV is also critical for this reform.

          Actions

          The DoEE minister issued a set of regulations to guide independent transmission projects. A ministerial determination to procure the development of 1,164km of 400kV transmission lines was issued in March 2025. Furthermore, a Request for Qualifications (RFQ) was launched in July 2025 to prequalify potential developers and the request for proposals will be issued in November 2025 for the first phase of the ITP procurement. Meanwhile the development of the Credit Guarantee Vehicle is underway - which will be in the form of a non-life insurance company - with an initial capital of $500 million. It is to be launched by the first quarter of 2026.

          Are there plans?

          The DoEE has opted for the independent transmission projects as a form of private sector participation in transmission expansion. Phase 1 of the ITP pilot is expected to go to market by November 2025 and is expected to unlock 3GW of renewable energy projects. Securing private sector developers is dependent on the Credit Guarantee Vehicle (CGV) being operational by the first quarter of 2026 and offer credit guarantees from early 2027.

          Is it on the agenda?

          South Africa's Minister of Electricity and Energy, Kgosientsho Ramokgopa, has issued a ministerial determination allowing the state to procure 1,164km of transmission infrastructure to be developed by the private sector, specifically 400kV power lines and related transformers in Northern Cape, North West and Gauteng.

          Goals

          To enable financing the development of transmission infrastructure or grid, incuding private sector participation, allowing more energy generation projects to help resolve South Africa's electricity crisis.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          Eskom's Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt. To address this the development of a Credit Guarantee Vehicle led by Treasury and the World Bank is underway to derisk transmission projects and crowd in more private finance. Aims are for the electricity transmission infrastructure to be procured or developed by private sector players - who would carry the costs on their balance sheets. The first phase of the procurement process, a request for qualifications (RFQs), was launched by the Electricity and Energy Department in July and seven prequalified bidders were named in December after 17 companies submitted bids. The final RFQ for the programme will be finalised by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle by the second half of 2026.

          Canvas not supported.

          Is it working?

          Outcomes of the RFQ process were announced on 15 December 2025. Out of 17 companies that made submissions, seven were named qualifying bidders. They are all foreign-owned companies. Electricity and energy Minister Kgosientsho Ramokgopa says that localisation will be built into the programme, and that in subsequent rounds (bid window 3/4) South African companies are expected to be leading bidders.As for round 1, the bidders will be involved in a process to finalise the RFP, with the aim to minimise risk and ensure project bankability. The RFP is due to be released by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle, in the second half of 2026 which is critical for this reform.

          Actions

          The DoEE minister issued a set of regulations to guide independent transmission projects. A ministerial determination to procure the development of 1,164km of 400kV transmission lines was issued in March 2025. Furthermore, an RFQ was launched in July 2025 to prequalify potential developers. Qualifying bidders were named in December 2025.They will be involved in a consultation process to inform the final RFP. Meanwhile the development of the Credit Guarantee Vehicle is under way - which will be in the form of a non-life insurance company - with initial capital of $500m. It is to be launched by the second half of 2026.

          Are there plans?

          The DoEE has opted for the independent transmission projects as a form of private sector participation in transmission expansion. Phase 1 of the ITP programme is expected to go to market by Q3 of 2026 and is expected to unlock 3GW of renewable energy projects. Securing private sector developers is dependent on the Credit Guarantee Vehicle being operational by the second half of 2026 and offering credit guarantees for these projects.

          Is it on the agenda?

          Minister of Electricity and Energy, Kgosientsho Ramokgopa, has issued a ministerial determination allowing the state to procure 1,164km of transmission infrastructure to be developed by the private sector, specifically 400kV power lines and related transformers in Northern Cape, North West and Gauteng.

          Goals

          To enable financing the development of transmission infrastructure or grid, incuding private sector participation, allowing more energy generation projects to help resolve South Africa's electricity crisis.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          Eskom's Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt. To address this, the development of the Credit Guarantee Vehicle led by Treasury and the World Bank is under way to derisk transmission projects and crowd in more private finance.

          Aims are for the electricity transmission infrastructure to be procured or developed by private sector players, who would carry the costs on their balance sheets. The first phase of the procurement process, a request for qualifications, was launched by the Electricity and Energy Department in July and seven prequalified bidders were named in December after 17 companies submitted bids. The final RFQ for the programme will be finalised by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle by the second half of 2026.

          There has also been progress in the development of the CGV. In early March 2026 it was announced that the Development Bank of Southern Africa (DBSA) will host a ring-fenced Project Implementation Unit to support its establishment. The World Bank also approved the South Africa Blended Finance Platform for Resilient Infrastructure Programme which includes $350m financing from the International Bank for Reconstruction and Development to capitalise the CGV and support further project pipeline development and implementation capacity.

          Canvas not supported.

          Is it working?

          Outcomes of the RFQ process were announced on 15 December 2025. Out of 17 companies that made submissions, seven were named qualifying bidders. They are all foreign-owned companies. Electricity and Energy Minister Kgosientsho Ramokgopa says that localisation will be built into the programme, and that in subsequent rounds (bid window 3/4) South African companies are expected to be leading bidders.As for round 1, the bidders will be involved in a process to finalise the RFP, with the aim to minimise risk and ensure project bankability. The RFP is due to be released by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle, in the second half of 2026 which is critical for this reform.

          Actions

          The DoEE minister issued a set of regulations to guide independent transmission projects. A ministerial determination to procure the development of 1,164km of 400kV transmission lines was issued in March 2025. Furthermore, an RFQ was launched in July 2025 to prequalify potential developers. Qualifying bidders were named in December 2025.They will be involved in a consultation process to inform the final RFP.Meanwhile the development of the Credit Guarantee Vehicle - which will be in the form of a non-life insurance company took a step forward in early March 2026 it was announced that the Development Bank of Southern Africa (DBSA) will host a ring-fenced Project Implementation Unit to further support its establishment. The World Bank also approved the South Africa Blended Finance Platform for Resilient Infrastructure Programme which includes $350m financing from the International Bank for Reconstruction and Development to capitalise the CGV and support further project pipeline development and implementation capacity.

          It is to be launched by the second half of 2026.

          Are there plans?

          The DoEE has opted for the independent transmission projects as a form of private sector participation in transmission expansion. Phase 1 of the ITP programme is expected to go to market by Q3 of 2026 and is expected to unlock 3GW of renewable energy projects. Securing private sector developers is dependent on the Credit Guarantee Vehicle being operational by the second half of 2026 and offering credit guarantees for these projects.

          Is it on the agenda?

          Minister of Electricity and Energy, Kgosientsho Ramokgopa, has issued a ministerial determination allowing the state to procure 1,164km of transmission infrastructure to be developed by the private sector, specifically 400kV power lines and related transformers in Northern Cape, North West and Gauteng.

          Goals

          To enable financing the development of transmission infrastructure or grid, incuding private sector participation, allowing more energy generation projects to help resolve South Africa's electricity crisis.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Summary

          Eskom's Transmission Development Plan, which was announced last year, predicted that 53GW of new generation (mainly renewables) will be required by 2032 to provide energy security. To enable this new generation, approximately 14,200km of transmission network must be developed. Eskom will be unable to fund this from its balance sheet because of its massive debt. To address this, the development of the Credit Guarantee Vehicle led by Treasury and the World Bank is under way to derisk transmission projects and crowd in more private finance.

          Aims are for the electricity transmission infrastructure to be procured or developed by private sector players, who would carry the costs on their balance sheets. The first phase of the procurement process, a request for qualifications, was launched by the Electricity and Energy Department in July and seven prequalified bidders were named in December after 17 companies submitted bids. The final RFQ for the programme will be finalised by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle by the second half of 2026.

          There has also been progress in the development of the CGV. In early March 2026 it was announced that the Development Bank of Southern Africa (DBSA) will host a ring-fenced Project Implementation Unit to support its establishment. The World Bank also approved the South Africa Blended Finance Platform for Resilient Infrastructure Programme which includes $350m financing from the International Bank for Reconstruction and Development to capitalise the CGV and support further project pipeline development and implementation capacity.

          Canvas not supported.

          Is it working?

          Outcomes of the RFQ process were announced on 15 December 2025. Out of 17 companies that made submissions, seven were named qualifying bidders. They are all foreign-owned companies. Electricity and Energy Minister Kgosientsho Ramokgopa says that localisation will be built into the programme, and that in subsequent rounds (bid window 3/4) South African companies are expected to be leading bidders.As for round 1, the bidders will be involved in a process to finalise the RFP, with the aim to minimise risk and ensure project bankability. The RFP is due to be released by Q3 of 2026, aligning with the finalisation of the Credit Guarantee Vehicle, in the second half of 2026 which is critical for this reform.

          Actions

          The DoEE minister issued a set of regulations to guide independent transmission projects. A ministerial determination to procure the development of 1,164km of 400kV transmission lines was issued in March 2025. Furthermore, an RFQ was launched in July 2025 to prequalify potential developers. Qualifying bidders were named in December 2025.They will be involved in a consultation process to inform the final RFP.Meanwhile the development of the Credit Guarantee Vehicle - which will be in the form of a non-life insurance company took a step forward in early March 2026 it was announced that the Development Bank of Southern Africa (DBSA) will host a ring-fenced Project Implementation Unit to further support its establishment. The World Bank also approved the South Africa Blended Finance Platform for Resilient Infrastructure Programme which includes $350m financing from the International Bank for Reconstruction and Development to capitalise the CGV and support further project pipeline development and implementation capacity.

          It is to be launched by the second half of 2026.

          Are there plans?

          The DoEE has opted for the independent transmission projects as a form of private sector participation in transmission expansion. Phase 1 of the ITP programme is expected to go to market by Q3 of 2026 and is expected to unlock 3GW of renewable energy projects. Securing private sector developers is dependent on the Credit Guarantee Vehicle being operational by the second half of 2026 and offering credit guarantees for these projects.

          Is it on the agenda?

          Minister of Electricity and Energy, Kgosientsho Ramokgopa, has issued a ministerial determination allowing the state to procure 1,164km of transmission infrastructure to be developed by the private sector, specifically 400kV power lines and related transformers in Northern Cape, North West and Gauteng.

          Goals

          To enable financing the development of transmission infrastructure or grid, incuding private sector participation, allowing more energy generation projects to help resolve South Africa's electricity crisis.

          Documents

          References

          Departments / Govt Institutions

          Department of Electricity and Energy IPP Office National Treasury

          Analyst: Lameez Hyman
          Status: in-progress
          Last Updated:
          Next Update:
          Got an Update? Follow this reform
          Reform Area:
          Reform:

            If you would like to alert our analysts to an update you are aware of in this particular reform area, please complete the form below and submit it to us. Please ensure you include links to any press releases or other documents to confirm the reforms and provide detail to allow our analysts to assess the changes. Our team will review it.

            Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            No data available for the deliverable: Interim Grid Capacity Allocation Rules (IGCAR)

            Summary

            To address grid access failures of Bid Window 6, Eskom released its Interim Grid Capacity Allocation Rules (IGCAR) in 2023. These were formulated in response to surging demand for grid access in a context of acute grid scarcity. Based on these rules, Eskom does not grant grid access based on "first come, first served" principles anymore but rather on a “first ready, first served” basis. The power utility has established a set of standards that developers of new projects must adhere to prove that their plans are "shovel-ready" and will eventually supply electricity to the grid. Developers must have power purchase agreements or contracts with buyers for electricity as well as environmental authorisations and water-use licences for the generation facility. Although interim rules were put in place, grid access remains a challenge for IPPs. The National Energy Regulator of South Africa (Nersa) subsequently led a process and approved Grid Capacity Allocation Rules which Eskom must also follow.

            Canvas not supported.

            Is it working?

            The IGCAR has been in place since 2023 but grid access remains unresolved for IPPs. The interim grid access rules were meant to resolve this, but they are flawed. Despite a “non-discriminatory grid access” policy, many private developers struggle with opaque, inconsistent and sometimes discriminatory grid allocation rules. The Interim Grid Capacity Allocation Rules were meant to introduce a fair “first-ready, first-served” approach but in practice, the process has suffered from inconsistent implementation, lack of transparency in queue management, arbitrary delays and unclear criteria for approvals.

            Actions

            There have been changes made to the interim grid access rules since their establishment. Towards the end of 2023, the "first come, first served" method of the Interim Grid Capacity Allocation Rules (IGCAR) was replaced with a new system based on the idea of "first-ready, first served." It was also subject to a legal challenge but this was dropped after Eskom eased some of the rules.

            Are there plans?

            Nersa led a process to develop Grid Capacity Allocation Rules, which were finalised and approved in November 2025.

            Is it on the agenda?

            Nersa was prompted to develop a set of Grid Capacity Allocation Rules to facilitate non-discriminatory and fair access. These were approved in November 2025 and now network service providers like Eskom must also adhere to these rules.

            Goals

            To eliminate grid queuing and hoarding and allowing space for shovel ready projects to get grid access.

            Departments / Govt Institutions

            Eskom Holdings National Energy Regulator of South Africa

            Analyst: Lameez Hyman
            Status: completed
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              Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              No data available for the deliverable: Removal of NTCSA upstream guarantee (‘Lazard Structure’)

              Summary

              Eskom has been working with financial adviser Lazard for a number of years in an attempt to bolster its balance sheet. Lazard designed an upward guarantee structure from the National Transmission Company of South Africa to Eskom HoldCo, aimed at sidestepping several concerns that the public enterprises department and Eskom had, in particular, a risk aversion to creditor votes/approvals. In the process, however, it has caused a significant impediment to the efficient operationalisation of the NTCSA, as the structure prevents it from borrowing as an independent entity to scale transmission investment faster. The NTCSA has made slow progress in building transmission lines as a result. While it is tasked with extending the grid infrastructure it is struggling to do so because it does not have the financial resources and private sector investments in transmission build are needed.

              Canvas not supported.

              Is it working?

              Given balance sheet constraints, the NTCSA has looked to alternative options to finance new transmission, such as the Independent Transmission Projects (ITP) procurement programme.

              Actions

              With the Electricity Regulation Amendment Act now in place and the NTCSA having been launched, the government has taken significant strides towards establishing the entity's independence. But the NTCSA is still a subsidiary of the Eskom HoldCo, and there are concerns about its financial independence, given the persistent Lazard structure.Independent financial advice into the NTCSA is necessary. National Treasury must play a greater role in defining the end state of Eskom HoldCo's balance sheet and capital structure.

              Are there plans?

              President Cyril Ramaphosa in his February 2026 State of the Nation Address, overruled Eskom's unbundling strategy approved by by the Department of Electricity and Energy that would have seen a Transmission System Operator established without asset ownership. The president has established a task team, under the National Electricity Crisis Committee that will over the course of three months developed clear proposals and timelines for the establishment of a fully independent transmission entity with asset ownership. This work should have a bearing on defining the end state of Eskom's capital structure and balance sheet - including resolving the Lazard structure with independent transaction advice.

              Is it on the agenda?

              President Cyril Ramaphosa's 2026 State of the Nation Address provides clarity on the future direction of Eskom's unbundling, including the establishment of an independent transmission entity with asset ownership.This support the work of Operation Vulindlela (which includes Treasury) which is working towards the functional independence of the NTCSA. It is expected that this work includes finding new financial models to address the Lazard structure.

              Goals

              The removal of the Lazard structure is a critical step for the operational independence of the NTCSA.

              Analyst: Lameez Hyman
              Status: in-progress
              Last Updated:
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              Reform:

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