This paper examines how existing standby generators may benefit the South African electricity system. Eskom, the national electricity utility, supplies 92% of South Africa’s electricity needs at a price to consumers that is the lowest in the world, making it virtually impossible for alternative generation to compete. Installed electricity generation capacity is 38 154MW with a reserve margin of 8-10%. Eskom would prefer a margin closer to 15% but demand growth for the next year will reduce the margin further, to 3.75%. One response has been to introduce a demand management programme The country has begun to suffer more frequent outages, particularly during winter when demand is highest. One aspect of the management programme is to shift the two daily peaks to the ‘valleys’. Eskom estimates a possible 3 000MW capacity available from standby generators. The research should deliver a more accurate figure, as well as the location of these generators, particularly with respect to network constraints. Also considered are issues of synchronisation with the grid, emissions, noise and other environmental impacts associated with the operation of distributed generation, as well as the contractual conditions under which such an arrangement may be possible
