As part of President Cyril Ramaphosa’s State of the Nation Address (SONA) last night, he announced that his cabinet has approved amendments to the Electricity Regulation Act.
Ramaphosa further explained that these “far-reaching” amendments will create a competitive market for electricity generations as well as the establishment of an independent state-owned transmission company.
South Africa to implement new Energy Generation Projects
Over the next few years, several new energy generation projects will be coming online. And so, slowly but surely, South Africa will start working load shedding out of its system.
These projects include:
- Over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme. These projects are currently at advanced stages of construction;
- 2,600 MW from Bid Window 5 of the renewable energy programme, for which the preferred bidders were announced last year;
- Up to 800 MW from risk mitigation power projects. These projects are reportedly ready to proceed;
- 2,600 MW from Bid Window 6 of the renewable energy programme. This programme is said to be soon opened;
- 3,000 MW of gas power and 500 MW of battery storage, for which requests for proposals will be released later this year;
- An estimated 4,000 MW from embedded generation projects in the mining sector;
- Approximately 1,400 MW currently in the process of being secured by various municipalities.
“In addition to closing the energy supply shortfall, we are implementing fundamental changes to the structure of the electricity sector,” Ramaphosa said during SONA 2022.
“Eskom has established a separate transmission subsidiary and is on track to complete its unbundling by December 2022. The utility has continued with its intensive maintenance programme, to reverse many years of neglected maintenance and underperformance of existing plants.”
Ramaphosa also has a Hydrogen strategy
Rampahosa also discussed the plans to move towards a Hydrogen strategy for the country during SONA. This could then address SA’s energy issues and make the transition to greener fuels.
According to Ramaphosa’s plans, a Hydrogen Society Roadmap will have to be developed over the next decade, as well as a Green Hydrogen Strategy for the Northern Cape. This will then support the development of a green hydrogen pipeline with is worth around R270 billion.
“Renewable energy production will make electricity cheaper and more dependable and will allow our industries to remain globally competitive. Investments in electric vehicles and hydrogen will equip South Africa to meet the global clean energy future,” he said.