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Electricity Regulation Act, 2006 (Act No. 4 of 2006)

Determinations under Section 34(1) of the Act

Energy Storage and Gas New Generation Capacity Determination

Notice No. 8021 of 2026

 

Notice No. 8021

14 October 2026

GG 55543

 

Department of Electricity and Energy

 

The Minister of Electricity and Energy ("the Minister"), after consultation with the National Energy Regulator of South Africa ("NERSA") and the Minister of Finance, for the purposes of ensuring security of energy supply in the national interest, acting under Section 34(1)(a) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), as amended, ("the ERA"), read with the Electricity Regulations on New Generation Capacity (published as GNR. 399 in Government Gazette No. 34262 dated 04 May 2011) ("New Generation Regulations"), has determined as follows:

 

1. that new generation capacity is needed to ensure the optimal supply of electricity;

 

2. accordingly, 9 600 megawatts (MW) of new generation capacity should be procured, in the amounts and from the sources indicated below;

 

2.1. Energy Storage 4 600 MW; and
2.2 Gas 5 000 MW,

 

which in each case is in accordance with the capacity allocated to those energy sources, under the heading "Energy Storage" for the years 2026 to 2042, and under the heading "Gas - IPP Programme" for the years 2031 to 2037, in Table 1 of the Integrated Resource Plan for Electricity 2026 -2042 (published as GN 6767 to 28 October 2025 in Government Gazette No. 53596)("IRP  2025");

 

3. electricity produced from the new generation capacity provided for paragraph 2 of this determination notice ("the electricity") shall be procured through one or more tendering procedures which are fair, equitable, transparent, competitive and cost-effective and which shall constitute IPP procurement programmes as contemplated in the New Generation Regulations ("procurement programmes");

 

4. the procurement programmes may provide for the establishment of new generation capacity from a combination of the sources referred to in paragraph 2 above;

 

5. the procurement programmes shall target connection to the national transmission power system or an interconnected distribution power system (collectively the "Grid") for the new generation capacity as soon as reasonably possible in line with the timetable set out in Table 1 of the IRP 2025. Deviations from the timetable set out in Table 1 are permitted to the extent necessary taking into account all relevant factors including the time required for efficient procurement, the availability of Grid capacity or the need for new electricity transmission infrastructure, and the required construction timelines for the generation facilities and any required electricity transmission infrastructure;

 

6. the electricity may only be sold to the entity designated as the buyer in paragraph 7 below, and only in accordance with the power purchase agreements and other project agreements to be concluded in the course of the procurement programmes;

 

7. the electricity must be purchased by the National Transmission Company South Africa SOC Limited (NTCSA) or by any successor entity to be designated by the Minister, as buyer (off-taker);

 

8. the electricity must be purchased from independent power producers;

 

9. the procurer in respect of the procurement programmes will be the Department of Electricity and Energy or any successor entity designated by the Minister, as procurer; and

 

10. the role of the procurer will be to conduct the procurement programmes, including preparing any requests for proposals and/or related and associated documentation, negotiating the power purchase agreements, facilitating the conclusion of the other project agreements, and facilitating the satisfaction of any conditions precedent to financial close which are within its control.

 

N8021 signature