The World Bank Group is currently evaluating a proposal to provide substantial financial backing, approximately $500 million (about R9 billion), to support South Africa's participation in a new credit guarantee facility. This initiative is strategically designed to attract and unlock private sector financing for a critical, large-scale expansion of the country's national transmission grid. This plan is essential for modernizing and strengthening South Africa's energy infrastructure.

A significant portion of South Africa's renewable energy projects are geographically dispersed, often located in remote areas. For instance, many of these projects are situated in the sun-drenched Northern Cape, or the windswept regions of the Western and Eastern Cape. These locations are considerably distant from the country's existing transmission infrastructure, posing a challenge for efficiently integrating renewable power into the national grid. The proposed World Bank financing aims to bridge this gap, facilitating the necessary upgrades and expansion to connect these crucial renewable energy sources to the main power network.

This substantial investment from the World Bank underscores the urgency and importance of developing robust transmission capabilities to support South Africa's shift towards sustainable energy. By enabling private sector involvement through the credit guarantee facility, the plan seeks to accelerate the deployment of renewable energy and enhance the reliability of the nation's power supply, contributing to long-term energy security and economic growth.