Energy News

Frankfort’s Solar Success Faces Eskom Legal Challenge: Future of Independent Power Producers at Stake

Published by
WIlliam Dube
  1. Rural Maintenance, an independent power producer, has successfully reduced load shedding in Frankfort by purchasing and distributing electricity from local solar farms at more affordable rates than Eskom.
  2. Eskom has threatened to block Rural Maintenance from altering load-shedding schedules, prompting a legal battle that may set a precedent for the future of Independent Power Producers in South Africa.
  3. Despite the success of custom load shedding schedules in Frankfort, Eskom’s primary objection is with the new solar power being brought online, which has allowed the region to generate more electricity than it consumes and experience zero load shedding on some days.

Frankfort, a town in South Africa’s Free State, has been enjoying reduced load shedding due to the efforts of Rural Maintenance, an independent power producer managing the area’s power distribution. Over the past decade, the company has been contracted by the Mafube Local Municipality to purchase electricity from four local solar farms at rates more affordable than those offered by the national power utility, Eskom. However, Eskom has recently threatened to block Rural Maintenance from altering load-shedding schedules, prompting a legal battle between the parties.

Rural Maintenance and the Mafube municipality’s business forum are set to meet with Eskom and its representatives in the Johannesburg High Court today. The private utility has filed an urgent application to prevent Eskom from exerting complete control over the frequency of rolling blackouts in Frankfort. The core dispute revolves around whether Rural Maintenance can implement its own load-shedding schedules; however, the ultimate decision will determine if the recently established solar farms can be utilized to their full capacity.

In an interview with 702, Rural Maintenance’s CEO Chris Bosch stated that the case might set a precedent for the future of Independent Power Producers (IPP) in South Africa. Eskom is concerned that this may lead to a surge of towns seeking to bring private generation online, resulting in a loss of revenue for the national power utility and an influx of private generation applications.

Bosch shared that Frankfort had served as an ideal testing ground for pilot projects aimed at reducing load shedding efficiently. Following consultations with Eskom, Rural Maintenance launched five separate initiatives to introduce new power sources, yielding positive results. Consequently, load shedding schedules in the area were customized to accommodate both larger power users seeking a single outage and smaller consumers desiring reduced frequency.

Despite the success of these custom load shedding schedules, Eskom’s primary objection lies with the new solar power being brought online. Rural Maintenance’s power purchases and distribution have allowed the region to generate more electricity than it consumes, resulting in zero load shedding on some days. This is in stark contrast to the rest of the nation, which has experienced elevated levels of load shedding on nearly every day this year.

Bosch emphasized the importance of securing a favorable judgment in court, stating that while it is essential for their cause, the goal of the exercise is to alleviate the community’s frustration with Eskom’s inability to supply electricity and the obstacles it creates for alternative solutions.

Rural Maintenance has a long history with Eskom, having provided electricity maintenance services for the utility’s rapid electricity program since 1993. The company’s involvement in the Mafube Local Municipality has allowed the region to operate more cost-efficiently. In August 2019, Rural Maintenance expanded into solar development to further reduce energy costs. In addition to managing power distribution, the company offers a range of services for municipalities, including installing and deploying metering systems, managing bulk electricity offtake points, and monitoring consumption.

WIlliam Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on william@rateweb.co.za

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Published by
WIlliam Dube

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