The Amendment of the Electricity Regulations on New Generation Capacity serves as a regulatory mandate for the procurement or development of new generation capacity by municipalities.
These regulations come after a long wait for clarity on the ability of municipalities to transact directly with independent power producers (IPPs). This was initially brought to the High Court by the City of Cape Town.
Although these regulations provide a starting point. However, further clarity is needed to ensure that a clear process is available that takes all procurement and energy, and any other legislation into account.