Adani Group enters South Africa’s R440 Billion transmission grid expansion

Gautam Adani’s Adani Power Middle East has entered the competitive bidding process for South Africa’s ambitious R440 billion transmission grid expansion. This initiative, known as the Independent Transmission Projects (ITP) programme, aims to develop 14,000 kilometres of high-voltage lines to alleviate chronic bottlenecks in the country’s energy supply.

Launched in December 2024, the ITP programme seeks to integrate 34 gigawatts of wind power and 25 gigawatts of solar capacity over the next 14 years. This effort is part of South Africa’s strategy to reduce reliance on ageing coal infrastructure and meet escalating energy demands from industrial and urban centres.

The pre-qualification phase attracted responses from 17 companies and consortia, coordinated by the Independent Power Producer Office (IPPO). Among the bidders are Adani Power’s Middle East operations, China Southern Power Grid International, State Grid International Development Company, and France’s EDF Power Solutions. South African companies such as SOLA Group and Mulilo Renewable Energy have also expressed interest, combining local expertise with international capital.

The evaluation of these submissions is scheduled for completion by November 2025, paving the way for a competitive request-for-proposals process that prioritises transparency and risk-sharing models, where private entities shoulder construction and financing burdens.

Gautam Adani, founder and chairman of the Adani Group, a conglomerate spanning ports, mining, and renewables, ranks as the world’s 27th wealthiest individual, with a fortune of $71 billion as per Forbes latest tabulations. The group’s energy arms, including Adani Green Energy, Adani Power, and Adani Energy Solutions, boast a portfolio exceeding 15 gigawatts of renewable capacity in India alone, positioning them as frontrunners in global clean energy ventures.

Adani’s interest in South Africa reflects its aggressive overseas expansion strategy. The ITP programme aligns with proven models in emerging markets, such as those in India, Brazil, Peru, and Chile, where private-led projects have mobilised billions in transmission investments under frameworks allowing flexible ownership structures.

At the programme’s helm is Electricity Minister Kgosientsho Ramokgopa, who in April outlined the inaugural phase: a tender for 1,164 kilometres of 400kV lines across the Northern Cape, North-West, and Gauteng provinces. This pilot, designed to unlock more than 3,000 megawatts of generation, sidesteps potential land acquisition disputes by focusing on pre-identified corridors, minimising delays that have historically hindered infrastructure rollouts.

Subsequent phases will scale dramatically, incorporating over 14,500 kilometres of lines and 210 transformers by 2034, as projected in the National Transmission Company of South Africa’s (NTCSA) 2025-2034 Development Plan. The grid upgrade is integral to South Africa’s Integrated Resource Plan, which charts a phased decommissioning of coal plants, responsible for 80% of current output, while diversifying towards gas, nuclear, and renewables to sustain a projected 5% annual economic growth trajectory.

The ITP programme has garnered significant interest from global and local players, underscoring the urgency and scale of South Africa’s energy infrastructure needs. The involvement of major international companies like Adani Group signals a strong commitment to the country’s energy transition and highlights the potential for substantial foreign investment in South Africa’s renewable energy sector.

As the evaluation phase concludes and the request-for-proposals process commences, stakeholders will be closely monitoring developments to ensure that the selected projects align with South Africa’s long-term energy goals and contribute to a sustainable and reliable energy future.