Former IPP Office head now sees definite role for private sector in grid development

The former head of South Africa’s Independent Power Producer (IPP) Office, Karen Breytenbach, believes there is a compelling case for the injection of private sector investment to accelerate the roll-out of new electricity grid infrastructure, as has been proposed by Electricity Minister Kgosientsho Ramokgopa. She cautions, however, that significant consultation is still required to ensure that any institutional and regulatory frameworks developed to support such investment is sensitive to the risk posed by the natural-monopoly character of such infrastructure, as well as the commercial realities of funders and potential investors.