Business
Billionaire Gautam Adani Targets South Africa’s R440 Billion Power Grid Expansion
Private Power Meets Public Ambition
South Africa’s electricity overhaul has just caught the attention of some of the world’s biggest energy players, including Indian billionaire Gautam Adani, one of the wealthiest businessmen on the planet. His company has joined a growing list of global developers eager to invest in South Africa’s R440 billion transmission grid expansion, a once-in-a-generation project aimed at fixing the country’s fragile power network.
The initiative, known as the Independent Transmission Projects (ITP) programme, was launched in December 2024 to draw private capital into building and upgrading about 14,000 kilometres of new power lines. It forms part of the government’s long-term plan to connect new renewable energy projects to the grid, particularly as ageing coal stations are retired.
In short: South Africa wants to add 59 gigawatts of new generation capacity, 34 from wind and 25 from solar, over the next 14 years. But it can’t do that without stronger transmission lines and modern substations to carry the load.
Adani Joins the Race
Among the 17 companies and consortiums that responded to the government’s call for pre-qualification are some of the world’s most powerful energy players:
-
Adani Power Middle East, part of Adani’s vast Indian conglomerate
-
China Southern Power Grid International
-
State Grid International Development Co.
-
EDF Power Solutions of France
Local firms like SOLA Group and Mulilo Renewable Energy have also thrown their hats into the ring, ensuring South African companies have a seat at the table.
The pre-qualification phase, currently under review by the Independent Power Producer Office, is expected to wrap up by November 2025. Once that’s done, shortlisted developers will receive formal requests for proposals detailing the technical and financial requirements of the first projects.
Who Is Gautam Adani?
Adani, who ranks 27th on Forbes’ global billionaires list with a net worth of roughly $71 billion, is no stranger to mega-infrastructure. His group has built some of India’s largest ports, power plants, and renewable energy facilities. The Adani Group’s energy arm, Adani Green Energy, is one of the biggest renewable developers in Asia.
If successful in South Africa, Adani’s involvement could signal a major boost in foreign confidence toward the country’s renewable and infrastructure ambitions, especially at a time when investment has been cautious due to load-shedding and grid constraints.
What’s Next for South Africa’s Grid
The first phase of the ITP is expected to involve 1,164 kilometres of transmission lines, unlocking more than 3,000 megawatts of new capacity. According to Electricity Minister Kgosientsho Ramokgopa, this phase is likely to avoid major land-ownership disputes, a factor that has historically delayed infrastructure projects.
A later stage, more than ten times larger, will follow, requiring transformers, substations, and complex logistics across multiple provinces. To help de-risk the private sector’s participation, the government will introduce credit guarantees by 2026, largely funded through commercial lenders.
The Development Bank of Southern Africa has confirmed that similar privately built transmission models have succeeded in India, Brazil, Chile, and Peru, attracting billions in investment without the delays typical of state-run builds.
In addition, a R10 billion facility will act as a private insurance buffer to support the first round of energy projects before expanding into sectors like water and infrastructure.
A Turning Point for Energy Investment
South Africa’s grid has long been described as the “choke point” of the energy transition. With global giants like Adani, China Southern, and EDF showing interest, the ITP programme could mark a shift from crisis management to long-term energy security.
For now, the world’s eyes, and investors’ wallets, are on Pretoria. And if this programme succeeds, it won’t just be a win for the economy; it will redefine how South Africa powers its future.
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: Business Tech
Featured Image: Business Day
