Johannesburg — ESKOM could start buying power from renewable energy sources as early as next month even though the Independent Systems and Market Operator has yet to be established, according to Yousuf Haffejee, head of the utility's single-buyer office.

The establishment of the body is a government intervention to counter potential conflicts of interest from Eskom's roles as a producer and a buyer of renewable energy.

If Eskom does not procure the power soon, it could miss the deadline in the integrated resource plan, gazetted in December last year, which provides for 1025MW of electricity being bought from renewable energy sources by 2013.

Speaking at a power summit in Johannesburg yesterday, Mr Haffejee said SA should not wait for the mooted Independent Systems and Market Operator before it starts procuring power from renewable energy producers. He said it could take up to 36 months before the body is fully functional.

Eskom should have a "procurement plan" within the next two to three weeks and could commence with the procurement of renewable energy power either next month or in November, Mr Haffejee said.

Speaking at the same summit, Investec project and infrastructure finance head Michael Meeser said financial institutions are ready to fund renewable energy projects provided there is a regulatory environment that encourages investment.

"You want to know the rules of the game before you write the big cheque. How is this going to work and who is going to be the buyer (of power from renewable energy producers)? So we say: set the rules and do not change them," he said.

Department of Energy electricity chief director Thabang Audat said it is urgent that a suitable investment environment be developed.

Meanwhile, Energy Minister Dipuo Peters said the government wants local companies to manufacture components for future nuclear and renewable energy projects.

The nature and form of these projects, such as the nuclear build programme, will be determined in the second integrated resource plan, a long-term plan which should provide clarity on the future path of SA's energy sector. The plan is still under deliberation.

Ms Peters gave the summit an indication of the government's expectations from the nuclear build programme.

SA should not be "flooded" with imported goods which could be produced locally, she said. "We need to be able to manufacture locally. We want to create local jobs." Ms Peters said the creation of local industries is one of the items to be discussed at a planned solar investor conference in Upington, in the Northern Cape.

The conference, the date of which has yet to be announced , will discuss topics relating to the deployment of concentrated solar power, including land and water availability and environmental impact assessments.

"We want to see the different component manufacturers in that conference," Ms Peters said. This would give an indication of the available South African manufacturing capacity. "We will use the same approach for the nuclear bid."