ELECTRICITY REGULATIONS ON NEW GENERATION CAPACITY

The Electricity Regulations on New Generation Capacity, issued by the South African Minister of Energy under the Electricity Regulation Act 4 of 2006, establish the legal framework for procuring new electricity generation capacity by organs of state. The regulations cover planning via integrated resource plans, feasibility studies, ministerial determinations, and the procurement of capacity from Independent Power Producers (IPPs) and cross-border projects, while specifically excluding nuclear power technology.

• The regulations apply to the procurement of new generation capacity by organs of state, including base load, mid-merit load, peak load, co-generation, renewable energy sources, and cross-border projects, but they explicitly exclude capacity derived from nuclear power technology.
• The Minister of Energy is responsible for developing and publishing the integrated resource plan after consulting with the Regulator. The system operator, the National transmission company (NTC), and the Regulator are required to provide assistance for the development and monitoring of this plan.
• Ministerial determinations under section 34 of the Act must specify whether new generation capacity is to be established by Eskom, another organ of state, or an Independent Power Producer (IPP). If an IPP is selected, the Minister must identify the buyer and, if applicable, the procurer.
• Power purchase agreements (PPAs) between a buyer and an IPP must demonstrate 'value for money', which is defined as a net benefit to the buyer or Government considering cost, price, quality, quantity, risk transfer, and renewable energy policies.
• The Regulator is mandated to ensure that the buyer can recover the full amount of efficiently incurred costs when determining tariffs. This includes payments for the purchase of capacity, PPA administration costs, termination costs, and other expenses such as professional fees and hedging costs.
• Cross-border projects are defined as new generation capacity projects where the facility is located outside of the Republic. Such projects may be contemplated in a ministerial determination provided there are adequate agreements or memoranda of understanding between the Government and the relevant foreign government or international organisation.

APA

Centre for Environmental Rights (2011). ELECTRICITY REGULATIONS ON NEW GENERATION CAPACITY. https://cer.org.za/wp-content/uploads/2006/08/Electricity-Regulations-on-New-Generation-Capacity.pdf?x21779

Chicago

Centre for Environmental Rights. ELECTRICITY REGULATIONS ON NEW GENERATION CAPACITY. 2011. https://cer.org.za/wp-content/uploads/2006/08/Electricity-Regulations-on-New-Generation-Capacity.pdf?x21779.

Wikipedia

{{cite report |author=Centre for Environmental Rights |title=ELECTRICITY REGULATIONS ON NEW GENERATION CAPACITY |date=4 May 2011 |url=https://cer.org.za/wp-content/uploads/2006/08/Electricity-Regulations-on-New-Generation-Capacity.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centreforenvironmentalrights2011electricity, author = {{Centre for Environmental Rights}}, title = {{ELECTRICITY REGULATIONS ON NEW GENERATION CAPACITY}}, institution = {Centre for Environmental Rights}, year = {2011}, month = may, url = {https://cer.org.za/wp-content/uploads/2006/08/Electricity-Regulations-on-New-Generation-Capacity.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }