The amendments to South Africa’s New Generation Regulations, gazetted in October 2020, for the first time allowed municipalities and private off takers to procure power directly from IPP’s with approval from the National Energy Regulatory Authority (NERSA). Further amendments gazetted in August 2021 removed the need for licensing projects up to 100MW which are developed for own consumption. These amendments will change the electricity market in South Africa. As an IPP, Mpuma Power can now develop and sell power without recourse to Eskom.
As Eskom continues to struggle to supply sufficient power to meet demand, the ongoing load shedding is forcing businesses to rapidly consider alternative electricity supply sources. Coupled with price escalation: 15.63% increase in April 2021, 18.2% this year and 10% already agreed with the Regulator for next year present key drivers for the renewables market in South Africa. There is a 34% RE target by 2030 and a rooftop market predicted to reach 7.5GW by 2035. Eskom are now predicting 265 days of power shortages for this year.
To address the power need, Mark Shorrock, former founder and CEO of Shire Oak International, with 20 years of experience and over 90 projects completed, has set up Mpuma Power in South Africa to develop projects for three markets: municipalities, large corporates and the commercial / smaller business sector.