New Eskom Rules for Developers Seeking Grid Expansion Could Potentially Deter Independent Power Producers

New Eskom rules for developers looking to connect to the electricity grid have raised concerns among private companies. According to Eyewitness News, these rules, described as complex, are feared to hinder these companies’ contribution to power generation. As South Africa grapples with power cuts, there is a significant emphasis on attracting independent power producers (IPPs) to join the grid. However, within the private sector, there are worries about the strict conditions that must be met.

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Brian Day, the South African Association of Independent Power Producers chairperson, acknowledges that the new rules aim to ensure companies fulfil their promises. Nevertheless, Eskom could implement these requirements differently to avoid discouraging private companies. One proposed approach includes a “use it or lose it” clause, enabling new projects to access the grid more promptly.

While there are concerns, there is still a willingness to discuss the latest rules and conditions. Day shares that he has received a response following his public comments and questions during a recent webinar. This contact demonstrates receptiveness among stakeholders for further conversation.

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Picture: Twitter / AntonEberhard

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