b. Eskom Eskom indicated that they have contracted in 400MW of co-generation (this has been there for eight years) but indicated that there is no market for co-generation currently. The demand for co-generation will increase and industry needs to study the IRP documentation carefully as Nersa will only licence what is in this document. Further, if DoE makes a declaration, Eskom will purchase that power as specified in the declaration. Industry needs to note that there needs to be a willing buyer buyer-willing seller within an acceptable policy environment for this industry to succeed. Eskom also indicated that the MYPD3 cycle has funded co-generation till the cycle is completed and hence cannot purchase co-generation for the next four years. Hence industry needs to deal with the policy environment, to bring in more co-generation. Further, industry needs to note that there will be wheeling charges and these will be cost reflective.