Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry

摘要

South Africa’s electricity supply industry (ESI) remains a vertically-integrated monopolydespite global trends towards restructuring. The monopolistic nature of the ESI couldhinder the development of distributed power systems as penetration of renewableelectricity increases. The research aims to rationalise South Africa’s ESI evolution;propose practical power sector restructuring in the short-to-medium term; and todetermine their potential impact. The research methodology included a single case studyinstrument, with embedded sub-units of analysis. Primary research data was gatheredusing semi-structured interviews with industry experts in addition to which secondary datafrom government documents and archival records were used for triangulation. Researchresults conclude that South Africa’s ESI grew due to techno-economic industrialisationfactors, while Apartheid-era policies influenced the ESI in only some specific respects.The vertically-integrated status quo was sustained in the post-transformation period due togovernment’s focus on social imperatives; lack of regulatory & policy certainty; andconflicts in political ideology. South Africa didn’t experience the pre-conditions thattriggered global power sector reforms in the late 20th century but these pre-conditions arenow becoming evident. Privatisation of Eskom Generation and introduction of wholesaleand retail competition are not practical in the short-to-medium term, proving theinfeasibility of the standard model of reform locally. The introduction of an IndependentSystem and Market Operator (ISMO) using a single-buyer model is seen as the mostfavourable and practical option, with the ISMO owning transmission infrastructure. Theresearch suggests that ESI changes will increase system efficiencies, economicperformance and private sector involvement, but will not reduce electricity tariffs. Thescenarios, challenges and proposals identified in this research are also applicable to othercountries in Africa and other developing regions of the world, that have similar social andpolitical backgrounds, ensuring sustainable supply of electricity.