South African state-owned power utility company Eskom is seeking financing for its $21 billion transmission network expansion project. This initiative aims to integrate renewable energy sources into the national grid, crucial for a sustainable energy future. Eskom plans to construct 14,218 kilometres of power lines by 2033, a significant expansion compared to previous installations. To secure funding, discussions are underway with government ministries and potential investors, including private and foreign entities. Notably, pledges of $9 billion in climate financing were made through the Just Energy Transition Partnership in 2021 to support South Africa's energy transition efforts.
However, Eskom's funding approach awaits approval from the National Treasury, with various options under consideration. The utility remains committed to transparent communication with stakeholders and will provide updates on funding decisions. The Treasury's 2024 budget review disclosed plans to transfer $4 billion in fiscal 2024 and $6 billion in fiscal 2025 to Eskom, reflecting ongoing governmental support for the country's energy infrastructure development.