New power projects set to create significant local jobs, says energy expert

The Minister of Electricity and Energy Dr Kgosientsho Ramokgopa has announced major updates in South Africa’s energy sector, confirming seven international-led bidders under two key programmes.

He revealed the pre-qualified bidders for the first phase of the Independent Transmission Projects (ITP) Procurement Programme, which aims to expand the country’s electricity transmission network.

Energy expert Professor Vally Padayachee says it marks a transformative moment for the country's energy landscape.

"Importantly, these bidders were selected for their extensive experience... and these consortia will be collectively constructing 1,164km of powerlines, which will eventually unlock 3,222mw of new renewable energy capacity."

Padayachee says these projects seek to construct the infrastructure needed and for that, they will need a signifcant local workforce.

"They will employ significant local labour and localisation will be key."

Padayachee says while making the most of the expertise of the international consortia, it will also be crucial during the final contractual stage to piggyback local contractors.

"So that the learnings can be done seamlessly and these contractors will become reasonably competent, so that they can become competitive for the next round of contracts."

The announcement comes as government continues with plans to unbundle Eskom and diversify electricity generation to improve energy security and reduce reliance on a single utility.

Private sector investment is expected to play a critical role in stabilising South Africa’s electricity supply and supporting long-term economic growth.

To listen to Professor Vally Padayachee in conversation with CapeTalk and 702's Africa Melane, click the audio below: