Ramaphosa announces major change to fix load shedding

President Cyril Ramaphosa has introduced the steps his authorities will take to guarantee the tip of load shedding in South Africa.

In a shock tackle on Thursday afternoon (10 June), Ramaphosa mentioned that this can embody the modification of schedule 2 of the Electricity Regulation Act to improve the NERSA licensing threshold for embedded technology tasks from 1 MW to 100 MW.

“This intervention reflects our determination to take the necessary action to achieve energy security and reduce the impact of load shedding on businesses and households across the country,” he mentioned.

“It is evidence of our intention to tackle this economic crisis head-on, by implementing major economic reforms that will transform our economy.”

Ramaphosa mentioned that the amended rules will exempt technology tasks up to 100 MW in dimension from the NERSA licensing requirement, whether or not or not they’re linked to the grid.

This will take away a big impediment to funding in embedded technology tasks, he mentioned.

“Generators will also be allowed to wheel electricity through the transmission grid, subject to wheeling charges and connection agreements with Eskom or the relevant municipality.”

However, technology tasks will nonetheless want to receive a grid connection allow to make sure that they meet all the necessities for grid compliance, he mentioned.

“This will make sure that we’re in a position to convey on-line as a lot new capability as potential with out compromising the integrity or stability of our vitality system.

“Generation projects will also need to have their registration approved by the regulator to verify that they have met these requirements and to receive authorisation to operate.”

Other situations

Ramaphosa mentioned that municipalities could have discretion to approve grid connection purposes of their networks, based mostly on an evaluation of the affect on their grid.

They may also have to undertake an Environmental Impact Assessment and all different necessities of current laws.

“This will ensure that while we enable as much new generation capacity as possible to come online, we also ensure the orderly development of the energy system,” Ramphosa mentioned.

“This reform is anticipated to unlock vital funding in new technology capability within the quick and medium time period, enabling corporations to build their very own technology services to provide their vitality wants.

“This in turn will increase the available supply of energy and reduce the burden on Eskom, allowing Eskom to proceed with its intensive maintenance programme and reduce its reliance on expensive gas and diesel turbines.”

The change shall be gazetted throughout the subsequent 60 days, Ramaphosa mentioned.

Worst disaster in latest historical past 

South Africa is within the midst of its worst financial disaster in latest historical past, which has seen a dramatic improve in unemployment and starvation and a big decline in financial progress.

While the Covid-19 pandemic has performed a component on this drawback, Ramaphosa mentioned that many of those issues have existed for a variety of years.

Ramaphosa mentioned that one of many key disaster that wants to be addressed is the nation’s vitality provide shortfall, as no financial system can actually grew considerably with out vitality safety.

He mentioned that steps had been taken during the last months to held tackle the nation’s vitality points, together with the launch of a brand new bid window

He added that Eskom is working arduous to tackle the issues at its energy stations in addition to its debt burden, and full its restructuring course of.

However, Ramaphosa that these should not sufficient to tackle the rapid shortfall dealing with the nation. Incremental measures won’t be ample to tackle the size of this problem, he mentioned.

Read: South Africa extends state of catastrophe by one other month as Covid instances rise

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