Negotiating sustainable off-take agreements between Eskom and alternate electricity suppliers in South Africa.

Date
2016
Authors
Nkwana, Kenneth
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Abstract
Eskom, a state owned power utility, is both vertically integrated (generating, transmitting and distributing electricity) and a monopoly supplying 95% of electricity in South Africa. In recent years, Eskom has not been able to meet the demand for electricity, resulting in power outages known as load-shedding. Whilst Eskom builds new power stations, the government has encouraged electricity supply from independent alternate suppliers of electricity, also known as independent power producers (IPPs). Many IPPs have embraced the opportunity and have off-take (power purchase) agreements with Eskom however, not all have succeeded. This qualitative research focuses mainly on renewable sources of electricity, especially wind energy, solar (concentrated solar and photovoltaic) technologies. The research scrutinises the power generation model in South Africa and studies key factors, risks, constraints, issues and opportunities in the process of negotiating sustainable off-take agreements between Eskom and IPPs. The report then recommends the best approach to long-term sustainability of electricity supply in the country, including migration of base load electricity provision from coal and other fossil fuels to more sustainable wind and solar technologies. Also recommended are areas for further exploration, not covered by this research in detail, include the best model of electricity supply in South Africa; whether Eskom should remain the system owner and the feasibility of the energy internet in South Africa.
Description
MBA
Keywords
Eskom (Firm) .Electric power distribution -- South Africa. Energy policy -- South Africa.
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