In 2007 the National Energy Regulator of South Africa (Nersa) released the findings of an audit into 11 major electricity distributors in the country; this recommended that the government spend more than R400-million on refurbishing of infrastructure. The energy regulator was forced to intervene following a spate of power outages across the country in 2005, blamed mainly on the poor state of the country's electricity distribution infrastructure.
South Africa is to spend R97-billion to increase the capacity of its electricity grid over the next five years. Eskom is committed to spending R97-billion over the same period on building new coal-fired power stations and reopening mothballed ones. The private sector is expected to invest a further R23-billion in increasing capacity in the same period.
Earlier in 2007, Eskom received a licence to build the first new coal-fired power station in the country for more than 20 years, with a R66-billion project in Limpopo.
In addition, consortium led by US power producer AES will build, own and operate two new open-cycle gas turbine peaking-power plants, representing an investment of over R5-billion during the construction phase, a significant portion of which will be foreign direct investment.
In August 2005, five consortiums qualified to bid for the right to build, own and operate two new power stations in the Eastern Cape and KwaZulu-Natal. The plants are expected to cost R6-billion to build and to be fully operational by the end of 2008.