File Image: ANA Pictures
File Image: ANA Pictures

ANC caucus welcomes new law on independent energy production

By Siyabonga Mkhwanazi Time of article published Jun 12, 2021

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Cape Town - The ANC caucus in Parliament has welcomed the decision by President Cyril Ramaphosa to increase the licence threshold for embedded generation to boost energy security in the country.

Ramaphosa announced that the licence restriction has been lifted from 1MW to 100MW.

ANC chief whip Pemmy Majodina said on Friday this was a significant step to ensure the supply of energy.

South Africa has been battling load shedding in the past few days two weeks with Eskom facing breakdown of its units.

Majodina said they fully support the decision to increase the licence threshold as it would also boost the economy.

“We fully support and commend the bold move to amend Schedule 2 of the Electricity Regulation Act to increase the licensing threshold for embedded generation projects from 1 MW to 100 MW,” said Majodina.

“This much-needed intervention is aimed at re-establishing energy security in the country and will unlock new investments in the energy sector, thus reducing the risk of load shedding. This clearly shows that the ANC-led government is committed to the economic recovery plan,” she said.

Ramaphosa had said this would not mean that Eskom would be privatised. He said, instead, it would provide competition to the power utility.

Ramaphosa added that Eskom has been battling load shedding and the country needs energy security.

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