Context
South Africa faces the challenge of making its electricity system more competitive, more climate-friendly and secure. Achieving this calls for a functioning electricity trading market, a legal framework and unbundling of the state-owned electricity supplier Eskom. In addition, the National Transmission Company South Africa (NTCSA) needs more practical know-how to make the energy transition systems more flexible and stable.
Cities and municipalities can also participate in the electricity market. Municipal utilities need support to operate and maintain the grids and to design electricity tariffs.
Objective
The South African electricity system is reliable, competitive and climate-friendly. Cities and municipalities participate in the electricity market.
Approach
The project supports reform of the South African power sector in three areas:
• It advises the Department of Electricity and Energy (DEE) and the National Energy Regulator of South Africa (NERSA) on introducing a competitive electricity market and adapting legislation for transparent, fair and sustainable electricity trading.
• It advises the national electricity market operator NTCSA and municipal utilities on planning and maintaining grids and integrating renewable energies.
• It encourages cities and municipalities to participate in the electricity market. Among other things, it provides technical support in designing tariffs, implementing gender-specific action plans and introducing digital applications.
The project is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). Additional funding is provided by the Swiss State Secretariat for Economic Affairs (Secrétariat d'État à l'économie, SECO).