Grid challenges persist amid energy market changes

South Africa’s energy market is undergoing various changes, including the unbundling of State-owned power utility Eskom, as well as licence exemptions for independent power producers (IPPs). The latter has eased access for new projects, but has also affected grid access and publicly procured generation, says IPP Globeleq general counsel Marlise Schmidt. “Eskom, with its historical monopoly over generation, transmission and distribution in South Africa, has faced numerous difficulties, including financial challenges, ageing infrastructure and issues related to governance.”