Navigating Complexities: Municipalities' Dilemmas in Engaging with Independent Power Producers

City of Ekurhuleni discusses the complexities and challenges faced by municipalities when interacting with Independent Power Producers (IPPs) in two different scenarios.

In the first scenario, where a customer requests power from an IPP located outside of the Eskom grid, the lack of a national willing framework creates uncertainty and results in each municipality implementing their own strategies. Eskom also requested security deposits for changing the supply agreement.

In the second scenario, when the generator and customer are within the same COR, the city's plans to purchase power from IPPs led to competition for connection points on the grid.

The city prioritises IPPs they have contracted since 2016, temporarily suspending private IPPs from connecting until all appointed IPPs have done so.

This internal program challenge prevents the city from accommodating more private IPPs and expanding their grid capacity.