By Lehlohonolo Lehana.
Minister in the Presidency responsible for Electricity Dr Kgosientsho Ramokgopa says government is seized with introducing new generation capacity from renewable sources to ensure energy security into the future.
Ramokgopa was speaking during an update on the implementation of the Energy Action Plan on Monday.
“We are really looking long-term and introducing interventions that can make it possible for us to introduce new generation capacity from a multiplicity of fuel sources and players to ensure that we are not confronted with the same problem going into the future.”
“Now we are looking beyond Eskom as part of an enduring resilient solution to the energy crisis and ultimately, we are able to achieve energy sovereignty,” he said.
The Minister said government is “doing everything possible” to ensure that new generation projects are brought into the fold.
He added that currently, there are about 120 projects with some 12 000 megawatts.
“There is a need for us to expedite the applications for new generation. We are departing from the current arrangement. So a project developer will go to a number of departments…to get the environmental impact assessment… They [then] lodge an application with the Department of Water Affairs for water use licence, and they’ll lodge an application again with Eskom for grid access.
“What we have done is to create a single window of entry, what we refer to as a one stop shop, so that project developers don’t necessarily have that onerous responsibility of going to multiple departments. They simply go onto this platform and they are able to make these applications,” he said.
Ramokgopa said Eskom and government are working hard to ensure a reduction in the amount of time it takes for renewable energy resources to be connected to the grid, with backlogs receiving urgent attention.
6 power stations in need of urgent attention
The minister said six power stations including Thuthuka, Kendal, Kusile and Majuba need urgent attention ahead of winter season.
“This arrangement is across the entire fleet of Eskom and not just isolated to particular stations but there are these stations that essentially over a period of time , they come across as being problematic therefore they require added attention”, says Ramokgopa.
He said the power utility will introduce a mechanism called the Standard Offer Programme which will seek assistance from local and international markets to avail their access generation capacity.
He says this will also help remove the procumbent ceiling so Eskom can produce more electricity.
“We had a ceiling of getting about a thousand megawatts which was going to run for a period of 2 years, and we have found that programme has been oversubscribed.
“The team has gone to the board and now seeking an approval: The approval is to make sure that we remove the ceiling of a thousand because once we get to a thousand it means that we have met the original intent of the programme to procure an additional one thousand megawatts, so we are increasing the megawatts to 4000, Eskom board must still apply its mind but that is something that has been put forward”.
Ramokgopa added that the Electricity Amendment Bill will reshape the landscape of South Africa’s energy sector.
The bill is aimed at paving the way for the unbundling of Eskom.
It also provides for the creation of a transmission system operator and an open market platform that allows for competitive electricity trading.
NTCSA unbundling secures lender consent
Ramokgopa further said Eskom’s eight “lender groups” have given their consent to the establishment of the National Transmission Company South Africa (NTCSA) as a separate subsidiary under Eskom Holdings.
Bondholder consent was one of several key approvals required ahead of the operationalisation of the NTCSA, officially scheduled for April 1, alongside the appointment of an independent board and licensing approvals from the regulator.
Ramokgopa did not name the lender groups during a briefing on March 25, saying only that the eighth and final letter of consent was provided “last week”.
In February, the National Energy Regulator of South Africa (Nersa) officially published the three licences required for the operationalisation of the NTCSA, having approved their transfer from Eskom in 2023. And, Public Enterprises Minister Pravin Gordhan appointed the inaugural NTCSA board on January.
While being advanced under the existing Electricity Regulation Act (ERA), they also accord with some of the architectural changes outlined in amendments to the ERA, which were approved by the National Assembly on March 14.
The legislation will now serve before the National Council of Provinces, whose approval is also required before it can be signed into law by the President.
While opposition lawmakers have raised some concerns with the amendments, particularly with regard to the discretionary powers extended to the Energy Minister and with the future role envisaged for Nersa in setting prices and tariffs, Ramokgopa argued that the legislation would “remake the South Africa energy landscape”.
“One of the primary interventions [of the legislation] is to make it easier to produce and sell electricity in South Africa.”
“In order to do this, it established what the Bill refers to as a Transmission System Operator (TSO), which is managed by a newly formed entity that is wholly owned by Eskom and by extension wholly owned by the South African public, the NTCSA,” Ramokgopa explained.
He said the TSO would ensure that all electricity producers were treated “equally and fairly and be allowed access to the national grid on a non-discriminatory basis”.
Secondly, the legislation enables a “market platform” through which electricity can be bought and sold by multiple participants.
Ramokgopa also forecast that the new framework would, over time, help reduce prices through competition and innovation, improve reliability by boosting investment in supply, and introduce consumer choice.