South Africa Plan Backs Regional Electricity Connections

South Africa has opened a new path for regional electricity connections after the Development Bank of Southern Africa (DBSA) and the National Transmission Company South Africa (NTCSA) signed a Memorandum of Understanding to expand and modernise the country's transmission network.

The agreement was signed on July 31, 2026, at Eskom's Megawatt Park offices in Johannesburg. It gives both organisations clear responsibilities in project planning, funding, technical delivery and institutional capacity, with regional interconnectors placed among the main areas of work.

South Africa is increasing investment in its transmission system because more electricity projects need access to the national grid.

The programme also fits into the country's Transmission Development Plan, which is designed to increase transmission capacity, improve electricity supply and make room for more renewable energy generation.

Regional power trade gains priority

One of the major parts of the partnership is the development of regional transmission interconnectors. These are electricity transmission lines that connect neighbouring countries and allow power to move between national grids.

The organisations said these interconnectors will improve electricity trading within the region, make power systems more reliable and help attract long term investment into transmission infrastructure.

DBSA will provide experience in infrastructure development, project preparation and development finance. NTCSA will contribute operational experience and technical leadership as the operator of South Africa's national transmission grid.

Their work will include preparing projects, arranging infrastructure financing, building institutional capacity and delivering major transmission projects.

The partnership also aims to improve engagement with multilateral development banks, development finance institutions and private investors. This is intended to help secure funding for major transmission projects needed to meet South Africa's future electricity requirements.

The programme also supports plans to increase transmission capacity so more electricity generation projects, including renewable energy plants, can be connected to the national grid.

Partnership sets out shared responsibilities

NTCSA Chief Executive Officer Monde Bala said expanding the transmission grid would open the way for more electricity generation, improve energy security and support inclusive economic growth.

He said, "Expanding the transmission grid is essential for unlocking new electricity generation capacity, improving energy security, and supporting inclusive economic growth."

Bala also said the agreement showed a shared commitment to achieving South Africa's long term energy objectives.

DBSA Chief Executive Officer Boitumelo Mosako said the size of the country's transmission expansion programme required institutional partnerships and new financing approaches.

She said, "The scale of South Africa's grid expansion requires strong institutional partnerships and innovative financing solutions."

Mosako also expressed confidence that the partnership would help speed up the delivery of transmission infrastructure needed to meet future electricity demand.

The agreement marks another step in South Africa's efforts to modernise its electricity transmission system. A stronger network will make it easier to connect new power stations to the grid, improve the reliability of electricity supply and support investment in the energy sector.

The partnership also sets out how financial, technical and operational experience from both organisations will be used on large transmission projects.

Alongside domestic expansion, the planned regional interconnectors could improve electricity exchanges between South Africa and neighbouring countries, giving power systems more flexibility during periods of high demand or supply shortages.