South African electricity utility Eskom has selected Spanish engineering and renewable energy group Abengoa to build two 400kV power transmission lines in northeastern South Africa.
Under the $25m contract, Abengoa will engineer, design, construct and commission the two lines, which extend from the substation Medupi in Lephalale region to substation Borutho in Mokopane.
The transmission line, totaling 174km, are planned to enter service in 2017.
In March, Abengoa commissioned the 100MW KaXu Solar One concentrating solar power plant (CSP) near the town of Pofadder in Northern Cape, South Africa.
The CSP plant is a part of the 28 renewable energy projects which secured approval from the South African Department of Energy (DoE) in an effort generate up to 17,800MW of renewable energy by 2030 to reduce its dependence on oil and natural gas resources.
The company is currently developing two solar power plants including 50MW Khi and 100MW Xina in the country.
Recently, Abengoa was selected to develop new 21.1km transmission network in the state of Chihuahua, Mexico, for the Mexico Federal Electricity Commission (CFE).
Eskom supplies electricity required for approximately 95% in South Africa which accounts to approximately 45% of the electricity used in Africa.