An Indian billionaire and six other international groups have entered the race to deliver South Africa’s long-awaited $25 billion electricity transmission upgrade, a project seen as critical to fixing one of Africa’s most constrained power systems.

South Africa’s electricity ministry said it had pre-qualified seven consortia to bid for the expansion of the national transmission grid, a programme valued at about $25 billion, equivalent to roughly R440 billion.

The announcement was made on Monday, December 15, in Pretoria by Electricity Minister Kgosientsho Ramokgopa.

Among the shortlisted bidders is Adani Power’s Middle East unit, part of the Adani Group, founded and chaired by Gautam Adani, one of India’s wealthiest men.

Forbes ranks Adani among the world’s wealthiest individuals, with interests spanning ports, power generation, renewable energy, and large-scale infrastructure.

The pre-qualified list also features major global utilities and state-backed firms, including France’s Electricité de France, China’s State Grid International Development, and China Southern Power Grid International, highlighting the scale and international appeal of South Africa’s grid ambitions.

Ramokgopa said the move marked a major step in the government’s push to modernise and strengthen the country’s electricity backbone. He described the programme as central to unlocking economic growth, supporting industrial development, and improving national energy security through deeper private sector participation.

South Africa’s grid expansion is a cornerstone of its energy transition plans. The country remains heavily reliant on ageing coal-fired power stations, many of which are being gradually retired.

To meet future demand, the government plans to integrate a mix of renewable energy, gas, and other technologies, a shift that requires significant new transmission capacity.

The first phase of the programme will involve a request for proposals to build about 1,164 kilometres of new transmission lines, designed to connect more than 3,000 megawatts of additional generation capacity to the grid.

Subsequent phases are expected to be far larger, involving extensive investment in transformers and related infrastructure.

Alongside the transmission announcement, Ramokgopa also confirmed that four groups had been selected as preferred bidders under the latest round of South Africa’s renewable energy procurement programme, underscoring the country’s parallel push to add new clean power generation.

Together, the initiatives signal a decisive attempt to crowd in global capital and expertise as South Africa works to stabilise its power supply and support long-term economic recovery. (Business Insider Africa)