The Regulatory Environment for Electricity

EU-SA Partners for Growth Webinar

The threat of electricity blackouts at short notice continues to weigh heavily on the South African industry, business and households; almost fifteen years after these blackouts first started in 2006. This has a huge cost on the economy and affects business confidence and morale. In 2019, the Department of Mineral Resources and Energy (DMRE) published the long-awaited Integrated Resource Plan, which was promptly approved by Cabinet. For the period up to 2030, the Plan allocates over 29 GW (excluding own use) of new generation from all energy sources available (renewables, coal, hydro, storage, gas & diesel and extension of Koeberg’s plant design life). Following the February 2020 State of the Nation Address by President Ramaphosa, Minister Mantashe (DMRE) issued two Ministerial Determinations and a proposed amendment to the Electricity Regulations of New Generation Capacity (2011). The second Determination activates the procurement of 11.8 GW of new generation through the now well established, and highly regarded Independent Power Producers (IPP) office. In addition to procuring power, the programme is a major source of private sector investment and job creation.

The need to build new generation plants has been evident for many years but has been stalled or delayed for various reasons, such as an outdated IRP, eligible generation applications requiring Ministerial approval and Eskom’s refusal to sign Power Purchase Agreements between 2015 to 2018.

In order to provide clarity to EU stakeholders, the webinar explored the current status and the reasons, real or perceived, for the regulatory blockages delaying much needed private sector investment in embedded generation and the RE-IPP Program.


Webinar moderator: Jonathan First (DBSA)

  1. Welcome and Opening Remarks (Roberto Cecutti – EU Delegation)
  2. Reigniting South Africa’s Electricity Build Programme (Jacob Mbele – DMRE)
  3. The Role of the Regulator in South Africa (Dennis Seemela – NERSA)
  4. Overview of the Legislative Framework (Pippa Reyburn – ENS Africa)
  5. Energy Infrastructure Finance (Grovė Steyn – Meridian Economics)
  6. Analysis and Overview of the status quo (Chris Yelland – Independent Energy Analyst)