Future IPP's can benefit from the Dutch system of net metering for its national electricity supply grid

It is crucial that the private sector plays a role in addressing the future electricity needs of South Africa. This will reduce the funding burden on Government, relieve the borrowing requirements of Eskom and introduce generation technologies that Eskom may not consider part of its core function which may play a vital role in the future electricity supply options, in particular off-grid, distributed generation, co-generation and small-scale renewable projects [1]. The introduction of private sector generation thus has multiple benefits. It will contribute greatly to the diversification of both the supply and nature of energy production, assist in the introduction of new skills and capital into the industry, and enable the benchmarking of performance and pricing. This paper gives an insight into how the Dutch national power generator manages to incorporate “off-grid” DG into its national grid and how it succeeds to monitor, meter and purchase electricity generated by secondary or distributed suppliers. It further tries to explain how Eskom and IPP's can work together to co-exist in the same high demand market without losing any revenue whilst assisting each other to grow the economy of South Africa.