Streaming issues? Report here
Clement Manyathela 1500 x 1500 2020 Clement Manyathela 1500 x 1500 2020
The Clement Manyathela Show
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report with Mandy Wiener
See full line-up
The Clement Manyathela Show
09:00 - 12:00
Home
arrow_forward
Business
fiber_manual_record
Local
fiber_manual_record
Politics

Ramaphosa announces energy reform at last, opens up independent power generation

10 June 2021 7:09 PM
Tags:
Eskom
Economy
Nersa
Load shedding
The Money Show
Roger Baxter
Bruce Whitfield
Electricity generation
President Cyril Ramaphosa
Nazmeera Moola
IPPs
Andre de Ruyter
National Energy Regulator
independent power
economic recovery
Niveshen Govender

Bruce Whitfield gets comment from Eskom CEO André de Ruyter and other industry players on the president's energy announcement.

President Cyril Ramaphosa announced an easing of the red tape holding back independent power producers, during a surprise address on Thursday.

He said government is to amend the Electricity Regulation Act to raise the exemption threshold from 1 megawatt to 100 megawatts.

This means generation projects up to 100 MW will be exempt from applying for a license from national energy regulator Nersa.

A grid connection permit will still be required.

"This will ensure that we are able to bring online as much new capacity as possible without compromising the integrity and stability of our energy system" the president said.

Municipalities will have the discretion to approve grid connection applications in their networks.

Ramaphosa emphasized that Eskom will continue to play a central role as a generator of energy.

RELATED: Load shedding increased to Stage 3 for Thursday - and South Africans are fed up

On The Money Show, Eskom CEO André de Ruyter says the "very good news" is welcomed by the power utility.

It is very good news to assist us in bridging the generation capacity gap that is well-known and is contributing to load shedding

André de Ruyter, CEO - Eskom

We think this is a really positive development for the electricity supply industry in South Africa.

André de Ruyter, CEO - Eskom

Does it undermine Eskom's long-term sustainability though?

No, says, de Ruyter.

And the first priority is the national interest.

Clearly, you can't grow an economy without electricity, so if Eskom can't supply we need to get that electricity from somewhere else.

André de Ruyter, CEO - Eskom

What the president announced today is exactly what the doctor ordered to get that process [of attracting private investment to new generation capacity] going, so all in all I don't see it as a threat. I see it as a natural evolution of the opening up and the liberalisation of the electricity supply industry.

André de Ruyter, CEO - Eskom

How soon would South Africa see some relief in terms of electricity supply? asks Whitfield.

De Ruyter draws a comparison with what happened in Vietnam, a country that did something similar a few years ago.

Within 18 months they were able to add 17,200 megawatts of new capacity. So, I think this a very significant move that could rapidly alleviate our generation shortages.

André de Ruyter, CEO - Eskom

From our side, we will be ready to accommodate the new capacity when it becomes available.

André de Ruyter, CEO - Eskom

Whitfield also gets comment from other industry players:

This is an important move... As business we have been pushing for much bigger structural reforms in the economy and this is one of them.

Roger Baxter, CEO - Minerals Council South Africa

On the mining side, we've got 1.6 gigs of potential renewable energy we can add to the grid within the next 36 months...

Roger Baxter, CEO - Minerals Council South Africa

You'll get the mining sector, which is experiencing a big boom in prices, to start investing which then gets them thinking about expansion, which will be the first time in 15 years that's happened!

Nazmeera Moola, Head of SA Investments - Ninety One

Government says the regulations will be gazetted within the next 60 days.

Listen to the interview with de Ruyter and (from 4:44) other energy players below:


This article first appeared on CapeTalk : Ramaphosa announces energy reform at last, opens up independent power generation




10 June 2021 7:09 PM
Tags:
Eskom
Economy
Nersa
Load shedding
The Money Show
Roger Baxter
Bruce Whitfield
Electricity generation
President Cyril Ramaphosa
Nazmeera Moola
IPPs
Andre de Ruyter
National Energy Regulator
independent power
economic recovery
Niveshen Govender

More from Business

More from Local

More from Politics