Guide to Independent Power Producer (IPP) processes
The objective of this document is to provide an overview of the processes in the country and within Eskom relating to Independent Power Producers (IPPs).
1. Introduction and Background
It is crucial that the private sector plays a role in addressing the future electricity needs of the country. This will reduce the funding burden on Government, relieve the borrowing requirements of Eskom and introduce generation technologies that Eskom may not consider part of its core function which may play a vital role in the future electricity supply options, in particular off-grid, distributed generation, co-generation and small-scale renewable projects.
The introduction of private sector generation thus has multiple benefits. It will contribute greatly to the diversification of both the supply and nature of energy production, assist in the introduction of new skills and capital into the industry, and enable the benchmarking of performance and pricing.
...
http://www.eskom.co.za/c/article/552/home/