GILBERT MOSENA
AS THE South African public eagerly awaits the reliable supply of basic needs such as electricity, they continue to be fed useless platitudes that do not go anyway in fast-tracking a solution. At the same time, highly privileged, disgruntled elites continue to share their views in public, more specifically on how the design of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) was done to suit specific bidders without considering the technicalities involved in finalising such a rigorous process.
Put into context
The RMIPPPP is a modern, compulsory project that is intended to add highly needed dispatchable power into South Africa’s national grid. The 2000MW of electricity that the programme will deliver is intended to reduce the shortfall in generation capacity, which currently sits between 4000MW and 6000MW. While the demand is there to fully implement the programme, key deliberate delays need to be understood:
Failed DNG case
The application by the unsuccessful bidder, DNG, to halt the RMIPPPP process was dismissed, which further prolonged the power outages that the country continues to suffer from, which saw the country experiencing the highest amount of energy shed in a year, with over 1 150 hours without power.
The recent judgement further highlighted the important role the country’s legal system plays in providing fair and just ruling in important cases that can determine key developments for the country.
Energy is a key player in economic development
South Africa, like many countries, has endured a challenging period to navigate the Covid-19 pandemic and the economic strain it has placed on industry. The country needs fully operational and efficient infrastructure – that includes reliable and accessible power.
Energy security is the foundation of a sustainable economy and it is for the country to implement innovative programmes such as the RMIPPPP urgently. This boils down to key departments of the country following the suit of Nersa, which approved the necessary generational licenses for the bidders and assist in completing the necessary processes at hand.
Gas is a key ingredient in the energy mix
The Department of Mineral Resources and Energy is responsible for implementing the Integrated Resource Plan (IRP), which is focused on developing adequate generation capacity which can meet the country’s demand for electricity. The IRP fully recognises the role of gas in the energy mix, with over 3000 MW allocated for the plan until 2030. Natural gas will play a key role as a transition fuel to replace more emissions-intensive fossil fuels like coal and diesel.
While some commentators tend to see gas as unnecessary, key institutions and businesses believe in the role gas can play in supporting electricity generation, as seen with a R29bn fund set aside by Old Mutual’s African Infrastructure Investment Managers.
Natural gas is a vital ingredient in helping South Africa solve its load shedding crisis at the same time as being recognised as the best bedrock to enable a greater proportion of renewable energy to be inserted into the energy mix.
A multi-hub approach with floating storage regasification units in areas such as Richards Bay, Coega and Saldanha Bay has the opportunity to expand the LNG gas market and assist in developing the economy to provide power to energy reliant industries.
The country is making significant and effective developments in strengthening energy security and is only possible if all stakeholders involved play their role and be solution providers in enhancing the power industry and rejuvenating the economy.
Gilbert Mosena is the president of the National African Federated Chamber of Commerce and Industry
Daily News