This working paper provides a high-level assessment of the status quo and performance of the South African Electricity Distribution Industry (EDI). It was prepared in 2023 as one of two papers under the project “Strategic consultation on the future direction of the municipal electricity distribution industry (EDI) reform processes” to assist the South African Local Government Association (SALGA) (1) in analysing the current performance of the South African EDI and the impacts of the energy transition and power sector reform on the municipal business models, and (2) to formulate concrete recommendations for increasing the sustainability of municipal electricity businesses and reforming them in preparation for the forthcoming development of a competitive electricity market.

Author/s:CPCS

Uncover SAGEN’s role in providing advisory services for the liberalization of the electricity sector, facilitating policy and regulatory updates for a fair and equitable energy transition.

Learn more about SAGEN’s power sector reform activities in this fact sheet.

This study, conducted from January 2022 to February 2023 on behalf of Eskom and the South African-German Energy Programme (SAGEN) explores the potential implementation of an Energy Attribute Certificate (EAC) scheme for renewable energy and green hydrogen in South Africa. The research is based on desk research and interviews with experts in the energy certification and trading field. The study comprehensively analyzes various aspects of an EAC system, including international standards, labels, use cases, green tariffs, regulatory framework, electronic registry, operational practices, and governance. Its primary goal is to provide recommendations for the establishment of a functional and widely accepted EAC system in South Africa, benefitting GIZ, Eskom, the public sector, and energy industry stakeholders in the country. For more information, visit: https://www.eskom.co.za/distribution/energy-attribute-certification/

Author/s: Eskom

This comprehensive Wheeling Guideline is an essential reference for municipalities initiative third-party energy wheeling within their distribution networks. It systematically covers legal, regulatory, technical, and operational aspects of energy wheeling. By adeptly employing this resource, municipalities can build a robust wheeling framework, adhere to national policies and regulations, and leverage the advantages of third party energy wheeling to enhance their communities and achieve their long-term energy management goals. For more on third party wheeling, visit www.thirdpartywheeling.co.za

Author/s: EY

This research paper presents the underlying concepts and selected international examples of the use of a Contract for Difference (CfD) to support policy objectives such as a financial mechanism, a transitional measure, a support mechanism or a hedging tool.
Disclaimer: This publication contains information and data that were accurate up until the knowledge cutoff date of August 2022. While every effort has been made to provide reliable and up-to-date information, please note that circumstances may have changed since that time and the publication date.

Authour/s:Bredesen Consulting acting as a sub-contractor to Nord Pool Consulting, Eskom

This research paper presents the underlying concepts of the market model incl. the South African electricity supply industry, key functions of the Central Purchasing Agency (CPA) and Appendix 1 on capacity remuneration mechanisms (CRM).
Disclaimer: This publication contains information and data that were accurate up until the knowledge cutoff date of August 2022. While every effort has been made to provide reliable and up-to-date information, please note that circumstances may have changed since that time and the publication date.

Author/s:Bredesen Consulting acting as a sub-contractor to Nord Pool Consulting, Eskom

This research paper presents the underlying concepts of the market model incl. the South African electricity supply industry, market concept and the key market features as well as regulatory structures and international markets. The description is based on existing presentations of the current model as well as the on-going development of the future South African Market Code. This code (under development) shall become the regulation document for the South African market model.

Disclaimer: This publication contains information and data that were accurate up until the knowledge cutoff date of August 2022. While every effort has been made to provide reliable and up-to-date information, please note that circumstances may have changed since that time and the publication date.

Author/s:Bredesen Consulting acting as a sub-contractor to Nord Pool Consulting, Eskom

This report reviews possible business models for South African municipalities to seize arising opportunities and minimise potential risks associated with the introduction of renewable energy technologies in the domestic electricity system. It proposes a typology of available business models for municipalities to seize emerging opportunities arising from renewable energy technologies.

Authors: Montmasson-Clair,  Kritzinger, Scholtz, Gulati

This Discussion paper summarises the challenges and opportunities of changes in the German power market triggered by liberalisation and the Energiewende, and relates them to the energy transition challenge in South Africa. Based on German and South African experiences, the paper formulates suggestions for municipal utilities and a possible way forward for a new electricity distribution market design in South Africa.

This Paper is based on the outcomes of the South African-German Policy Discussion Workshop on Energy Market Design and Municipal Utility Business Models from 4th-8th December 2017 in Eschborn, Germany, jointly organised by SAGEN and the Secretariat of the South African German Energy Partnership (EP).

 Author: BBH, BBHC, Eclareon, SEA

This booklet provides renewable energy options, along with key challenges and risks, muncipalities can explore as of January 2018. The purpose of the series of booklets is to provide municipalities with information on key topics within the energy and electricity sector that have implications for the role of municipalities in energy and electricity. 

 Author: South African Local Government Association (SALGA)

The cost of supply tool aims to increase municipal understanding on what it costs them to supply electricity to different customers categories in order to (i) develop tariffs that are in line with the occurred costs and (ii) consider the possibility of introducing tariffs for small-scale embedded generation. The guidelines provide explanations on how to use the excel model.

 Author: Genesis

The cost of supply tool aims to increase municipal understanding on what it costs them to supply electricity to different customers categories in order to (i) develop tariffs that are in line with the occurred costs and (ii) consider the possibility of introducing tariffs for small-scale embedded generation. The guidelines provide explanations on how to use the excel model

 Author: Genesis