Tag: power purchase agreement (PPA)

On 1 January 2025, the Electricity Regulation Amendment Act 38 of 2024 (ERAA) came into effect. This followed extensive stakeholder engagement and multiple draft iterations. The ERAA aims to bring change to South Africa's electricity sector. It continues the shift from Eskom's vertically integrated monopoly to the Transmission System Operator SOC Limited (TSO).

While South Africa has enjoyed an extended respite from load shedding this year, there are other compelling reasons to accelerate the transition to renewable energy. One of the reasons are that businesses and homeowners are concerned about Eskom’s reported intention of seeking a 36% increase in tariffs in 2025 - on the back of electricity prices that have roughly tripled over the past 14 years.

Renewable electricity contracts, or power purchase agreements, are in high demand as companies and governments seek sustainable solutions, leading to growth in solar and wind energy purchases to meet net-zero carbon emission targets and reduce environmental impact. 

Eskom has run a successful pilot of virtual wheeling, which will enable companies with multiple offtake sites to connect to generators using the Eskom or municipal grids. Electricity wheeling mechanisms play a key role in facilitating the optimal integration of renewable energy resources into the grid.

On Tuesday 29 October 2019, the South African Minister of Public Enterprises, Pravin Gordhan, released, and held a media briefing on, a special paper entitled 'Roadmap for Eskom in a Reformed Electricity Supply Industry, 2019' (the Roadmap). The Roadmap highlights the issues that Eskom is currently facing and then sets out the government's plan to address them.