Understanding the South African Off-Grid Electrification Programme

During the two years since the process of implementing off-grid electric utility model started in South Africa, negotiations between different role players have led to significant changes in the structure of the programme and the roles of different parties. The programme no longer entails the establishment of concessions, but rather grants private companies the rights to establish off-grid energy service utilities, with some protection in cases where grid electricity is provided in their designated areas in the future. This utility service provision model is based on a fee-for-service approach, which guarantees maintenance of the systems in the area of operation of a particular off-grid utility. This paper seeks to document what the motivation for the programme were, the policy environment within which it is being implemented, the current status of the programme, the perspectives of various stakeholders, and draws lessons from the process for taking the process forward sustainably.