South African private power producers are seeking compensation for revenues lost when adhering to requests from state utility Eskom to limit electricity supply to the national grid, industry executives said. Eskom has submitted a proposal to the country’s energy regulator to introduce a mechanism to compensate independent power producers (IPPs) for lost revenue resulting from curtailment rates of up to 10%.
The National Energy Regulator of South Africa (Nersa) has confirmed that it received, on August 16, Eskom’s sixth multiyear price determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years. In a statement the regulator said that the application would be processed in line with all required procedures, including an assessment of its regulatory compliance, after which it would be published for stakeholder comment and public consultation.
Eskom has refrained from officially declaring an end to loadshedding despite having operated for more than 150 days without implementing rotational cuts; a period that coincided with the high-demand winter period. Nevertheless, CEO Dan Marokane expressed optimism that it was in a good position to navigate the high-maintenance summer months loadshedding-free, and that it could be in a position to formally announce an end to loadshedding by the end of March 2025.
As South Africa’s regulators mull a proposal from Eskom that could see electricity tariffs rise by as much as 40% next year, renewable-energy company GreenSun Renewable Energy has launched an energy-as-a-service offering for residential customers. The company is offering smart solar and battery installation at homes, all for the same cost or lower than current electricity bills, with increased reliability.
President Cyril Ramaphosa has left the door open to excluding a section in the Electricity Regulation Amendment (ERA) Act that could negatively affect the revenues municipalities raise from electricity sales when the legislation is officially implemented. Ramaphosa signed the ERA on August 20, with a clause stating that the Act would come into operation “on a date determined by the President”.
The International Finance Corporation (IFC) has confirmed that its stands ready to support South Africa’s efforts to facilitate private sector participation in the expansion of the country’s electricity grid. IFC Africa VP Sérgio Pimenta told Engineering News during his recent visit to South Africa that the World Bank Group agency had already been providing advice to government on possible models for deploying independent transmission projects to help address grid-related backlogs.
The South African government aims to Gazette an update to the Integrated Resource Plan (IRP) for electricity before the end of the 2024 calendar year and finalise South Africa’s inaugural Integrated Energy Plan (IEP) by the second quarter of the 2025/26 fiscal year. The timelines were provided during a meeting of the Portfolio Committee on Electricity and Energy on August 23, which was briefed by Electricity and Energy Deputy Minister Samantha Graham-Marê, as well as officials from the Department of Mineral Resources and Energy (DMRE).
As Eskom works to electrify its vehicle fleet and decarbonise its operations, the State-owned power utility is piloting electric vehicle (EV) charging infrastructure at its Academy of Learning, in Midrand.
This marks a milestone in Eskom Distribution’s commitment to supporting the growth of the e-mobility sector in South Africa and decarbonising its operations.
Engineering News editor Terence Creamer discusses the findings of the latest South African Renewable Energy Grid Survey; how the survey results will be used; and the mixed picture that has emerged for wind and solar projects following the latest public procurement round.
State-owned electricity utility Eskom announced in July that the National Nuclear Regulator (NNR) had extended the licence for Koeberg nuclear power station Unit 1, in the Western Cape, until 2044. This extension highlights Koeberg’s vital role in providing reliable baseload power while meeting stringent international safety standards. Eskom has operated Koeberg safely for 40 years, investing significantly in safety improvements and extensive maintenance.
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