Cape Town - The Western Cape Government has questioned the effectiveness of Energy Minister Gwede Mantashe’s draft amendments to electricity regulations, allowing for municipalities to establish self-sufficient electricity generation capacity.
The regulations permitting municipalities to apply to Mantashe to establish new generation capacity were published in May. Finance and Economic Opportunities MEC David Maynier said: “While we support the intent of these regulations, the proposed amendments and lead times to the development of new generation capacity don’t go far enough to address the electricity crisis that South Africa may soon again be facing.
“They also don’t provide the regulatory certainty needed to rapidly and significantly increase generation capacity outside of Eskom by municipalities through the procurement or development of their own power generation.
“While Eskom has assured us there will be minimal load shedding in June, as the restrictions on the economy eases, the electricity crisis is not behind us. Allowing new generation capacity to come online as soon as possible is critical to an energy secure future.
“As we move to reopen the economy safely and responsibly, an increase in manufacturing coupled with higher than usual residential consumption in winter will certainly see an increase in pressure on Eskom’s ability to provide adequate electricity with associated risks of further load-shedding,” Maynier added. Businesses in the Western Cape are already hard-hit by the Covid-19 pandemic and the resultant health and economic crisis.
“Add to this an electricity crisis, and this will certainly be the final blow for many businesses already on the precipice of closure, resulting in further job losses in the Western Cape.”
The South African Photovoltaic Industry Association (SAPVIA) COO Niveshen Govender said: “SAPVIA submitted comments and requested clarity on behalf of the Solar PV industry. We now understand that NERSA has concurred with the Department of Mineral Resources and Energy’s (DMRE) Ministerial determination on this matter, in line with the approved IRP 2019.”
Govender said: “Nersa responded clearly that the allocation for private generation is still available. They went on to explain, the capacity shortfall as stated in the IRP 2019 ranges between 2000 MW to 3000 MW and DMRE has only determined 2000 MW, this leaves at least 1000 MW that can be taken up by these bilateral agreements. This therefore means that there is in fact sufficient room for bilateral agreements and these continue to be licensed by Nersa.”