South Africa Backs Private Power Investors

The South African Government has approved a concession to attract private investors to the power generation sector, assuring that it will buy the power generated.

The government says the National Electricity Regulator will regulate state-owned utility Eskom's single-buyer function and all agreements with private producers, South Africa's Business Day reports.

Chief government spokesman Themba Maseko says Eskom will be the single buyer of power from independent producers and will also be responsible for ensuring independent producers make up 30% of new power generated.

Eskom is expected to build all of South Africa's nuclear power plants over the next 20 years, while independent providers will build over half of non-nuclear power plants.

By Elizabeth Clifford-Marsh