Description

Numerous developments are expected to take place within the South African electricity supply industry, in order for the country to adequately meet its future power generation requirements. Past under-investment in the electricity generation capacity, as well as constraints on the balance-sheet of the state utility, Eskom, have created an opportunity for private power producers to enter the electricity generation market. Liberalisation of the industry as well as an attractive policy environment is encouraging independent power producers to enter this nascent market, especially in the sphere of renewable energy. The large levels of interest in the market indicates a conducive and attractive environment for IPP’s to operate in.