2.. The single buyer model cannot be sustained, in respect of which Eskom is the sole aggregator and dispatcher of all the energy generated in the interconnected power system. This is due to Eskom’s poor balance sheet and its inability to carry the risks relating to long term power purchase agreements with other generators, without further encumbrance of the national revenue fund.
In the circumstances, it has become critical to find alternative models for the delivery of new generation capacity as required under the integrated resource plan. The entity that the Minister referred to at the Mining Indaba is aimed at complimenting the role that Eskom is unable to fulfil, in relation to new generation capacity. It is noteworthy that the entity could play the role of Buyer as well as developer of new power capacity, with or without private sector partners.
3. (a) (b)(c) work in regard to the structure has not been finalized and it would be premature to answer questions like mandate and timelines.
4. See (4) above