Will unleash new investment in energy generation by independent power producers. Under the current regulations, a license is required for any generation project above 1 MW. License conditions are complex and onerous, and it can take several years to get a license. This policy change will allow companies and power producers to build new projects without applying for a license, as long as they meet the requirements of the grid code to ensure safety and compliance.
Through Bid Windows 5 and 6 of the world-class Renewable Energy Independent Power Producer Procurement Programme (REI4P) will add new generation capacity to the grid over the next two years, primarily through wind and solar power. This will reduce the risk of load shedding for all South Africans and replace coal power stations as they retire.
Will create a modern and efficient energy system. For decades, Eskom has controlled all aspects of the energy system as a monopoly power utility. A separate transmission company, acting as the grid operator, will be able to treat all power producers fairly as it will be independent from the Eskom generation company. This will support competition in the energy sector and a focus on least-cost, most reliable energy sources.