Plan / Procurement / Law or regulation
The development of South Africa’s electricity supply industry
South Africa's electricity supply industry is now in its fourth decade of reform. Progress towards liberalisation of the market, the opening towards private investment and the shift to renewables has not been smooth. The introduction of key reforms has often been precipitated by crisis and necessity. Nevertheless, the overall trajectory is both clear and consistent.
White Paper on Renewable Energy Proposed the procurement of 10,000GWh of renewable energy generation by 2013.
1998
1987
Electricity Act Gave the National Electricity Regulator (NER) jurisdiction to regulate market access for producers greater than 5 GWh/yr, transmitters, distributors and sellers of electricity.
White Paper on Energy Policy Proposed the restructuring and liberalisation of the electricity supply industry.
Electricity Regulation Act (ERA) Established the National Energy Regulator of South Africa (Nersa) with authority to provide licenses and register energy projects.
Environmental Impact Assessments (EIA) The EIA process forms the framework for environmental authorisations required for renewable energy generation.
National Energy Act Provided for the increased use of renewable energies, contingency energy supplies,
2009
the holding of strategic energy feedstock and carriers, and adequate investment in energy infrastructure.
Nuclear Energy Policy Outlined the development of a nuclear energy programme as a primary resource of energy.
Renewable Energy Feed-in Tariffs (REFIT) Initiated by Nersa to facilitate the large-scale introduction of renewable energy.
Amendment of ERA Gave power to the Minister of Energy to determine new generation capacity
Integrated Energy Plan (IEP) An overall energy
REIPPPP BW 3 Procured 1,628MW over three years.
and to approve generation and procurement.
plan of action shaping policy and development of different forms of energy infrastructure investments.
2013
2014
Integrated Resource Plan 2010-2030 (IRP)
REIPPPP Bid Windows (BW) 1 & 2 Procured 1,425MW and 1,040MW respectively
REIPPPP BW 4 Reached financal close in December 2018 procuring 2,025MW.
Set a target to procure 17,8GW of RE, excluding large-scale hydro.
of grid-connected renewable energy.
Updated IRP Introduced plans to
REIPPPP BW 5 It reached financial close in March 2022 procuring 2,583MW.
decommission coal plants and to install over 25GW of renewable energy capacity and 3GW of energy storage by 2030.
Risk Mitigation Independent Power Producers Procurement
Amendment of Schedule 2 of ERA
Raised the threshold for embedded generation projects from 1MW to 100MW.
Programme (RMIPPPP)
REIPPPP BW 6 Procured 4,200MW but projects delayed by lack of budget quotes from Eskom. Energy Action Plan Intended to alleviate supply shortages and reinforce the restructuring of Eskom and an open electricity market. Further amendment of Schedule 2 of ERA Completely removed the 100MW limit on embedded generation projects.
Initiated to plug the energy gap in the power supply, it procured 1,998MW.
Electricity Regulation Amendment Act Established open market platform with an independent transmission system operator.
Nuclear Power Procurement
Establishment of National Transmission Company of South Africa
Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid windows planned in 2023 and 2024 for 513MW, 615MW and 616MW.
The Ministerial Determination for the procurement of 2,500MW was withdrawn in August 2024 to allow for more public consultations.
Updated IRP Adapts the plan and the outlook for coal plant decommissioning in response to the energy crisis.
2025
2024
Gas to Power Independent Power Producers Procurement Programme (GASIPPPP) Targeted capacity 2,000MW with March 2025 submission deadline.
REIPPPP BW 7 The 1.8GW of solar attracted 8.5GW of bids, but the 3.2GW of wind attracted just 1.7GW.
Climate Change Act Enhanced South Africa's ability and capacity to reduce greenhouse gas emissions, build climate resilience and meet NDC commitments under the Paris Agreement.
South Africa’s Energy Prospects
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