On 4 January 2024, the draft Integrated Resource Plan (IRP) 2023 was released for public comment by 23 February 2024.

• What’s in and what’s out?
  • Coal is still in, and a delay to shutting down power plants will be considered to maintain dispatchable supply.
  • Nuclear is identified and will be prioritised as a source of electricity generation.
  • Gas to Power – is next, with a focus on technologies including Combined Cycle Gas Turbines, Combined Cycle Gas Engines, and Internal Combustion Engines. 
  • Renewables – are still in, but there is a specific focus on solar, wind, and concentrated solar power with storage capabilities and the opportunity to diversify the electricity mix. Public and private programmes will focus on this mix with an increase in small scale embedded generation. Storage (including batteries, compressed air energy storage, flywheel storage and hydrogen fuel cells) will be used to complement this energy mix.
  • Hydro – is not out but the focus is more on regional and cross border initiatives.
  • Although Hydrogen is identified – it’s not a key intervention and no reason is provided as to why. 
• Five interventions you need to know:
  • 1) Improve Eskom’s fleet energy availability factor to restore security of electricity supply.
  • 2) In addition to non-dispatchable supply, the government will focus on dispatchable generation such as gas to power. This will be “accelerated”, and this happened already with the release of the 2000 MW from Gas to Power RFP under the first round of the Gas IPP Procurement Programme (GASIPPPP BW 1).
  • 3) Where technically and commercially feasible, the shutting down of coal fire power plants will be delayed to retain dispatchable capacity.
  • 4) Develop the Transmission Grid to support additional generation capacity.
  • 5) Manage emerging risks – this includes completing the extension of the design life of Koeberg Power Station. 

For more insight on the draft IRP 2023, contact your Energy and Project Development Specialists, Nikita Lalla:Nikita.Lalla@lnpbeyondlegal.com and Ricardo Pillay: Ricardo.Pillay@lnpbeyondlegal.com.

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