In the context of a broad process of economic and energy industry reforms underway in South Africa, PSR is supporting the country in building a regulatory framework for transmission expansion, aiming to attract private capital.
Luiz Barroso, CEO of PSR, and Amanda Fernandes, head of Networks at PSR, along with other international experts from the African School of Regulation, participated in a large meeting in Pretoria at the end of January to discuss the strategic planning of the regulatory model for incorporating Independent Transmission Projects, structured to enable private investment in network expansion.
During the meeting, with more than 80 participants from ten different South African and international organizations, PSR experts presented international experience in the sector, based on highly competitive auctions with private investors, and regulatory, planning, financing and governance recommendations to the country.
“Countries facing fiscal constraints and needing to accelerate transmission expansion can benefit from well-structured competitive models. The Latin American experience, with particular emphasis on the Brazilian case, shows that with regulatory clarity, predictability, and a consistent project portfolio, it is possible to attract private capital, reduce costs, and ensure the safe and high-quality expansion of the network,” says Luiz Barroso.
For Amanda Fernandes, “Transmission is what allows the connection of large volumes of renewables and new technologies to demand. By structuring Independent Transmission Projects with adequate risk allocation, stable remuneration mechanisms, and institutional coordination, South Africa can accelerate investments and strengthen the reliability of the system in the long term.”
South Africa’s Transmission Development Plan estimates a need for US$7 billion in the next five years alone, highlighting the magnitude of the challenge. PSR has been working with the Department of Electricity of the South African Ministry of Electricity and Energy, supporting them in implementing regulatory mechanisms to attract private investment in transmission.
