NextBillion - A WDI Publication

South Africa’s electricity sector is on the brink of its most significant structural reform. With the Electricity Regulation Amendment Act now in force and the unbundling of the transmission function well underway, the country is preparing to move from a single-buyer system to a market-based wholesale electricity market.

This webinar will provide a timely and practical overview of what this transition means, how the new market will work and how plans are progressing against proposed milestones.

What the webinar will cover
The webinar unpacks the architecture, mechanics and implications of the new wholesale market framework.

Key topics
How the new market will function
A clear explanation of the proposed day-ahead market, intraday auctions and balancing mechanism, including marginal price formation, demand response participation and the role of balance-responsible parties

Coexistence with physical contracts and wheeling
How existing and future power purchase agreements and wheeling arrangements will continue alongside the market and why accurate day-ahead position declarations are becoming critical

Managing curtailment and system constraints
An overview of the proposed constrained schedule and curtailment settlement approach, and how lost margin is treated differently for renewables and thermal generators

Transition risk and vesting contracts
How vesting contracts are intended to shield Eskom Generation and licensed distributors from price volatility while still enabling market-based operational behaviour during the early years of the market

Who should be preparing now
Implications for independent power producers, traders, large power users, municipalities and distributors — including forecasting, trading capability, collateral requirements and risk management readiness

Why this webinar matters
The wholesale market is expected to introduce day-ahead price signals, transparent balancing and emerging new commercial risks and opportunities. The webinar will also show the need to adapt quickly, developing new operational, trading and hedging capabilities. At the same time, the market design includes safeguards to manage volatility, market power and legacy obligations during the transition.

Time: 2:00 PM SAST