Ramaphosa unveils overhaul of electricity industry

Government will invite private companies to submit a fifth round of bids to provide additional renewable energy to the grid.
Image: Moneyweb
South African President Cyril Ramaphosa announced sweeping changes to the structure of the nation’s electricity industry to address energy shortages and reduce the reliance on state power utility Eskom.

The government will invite private companies to submit a fifth round of bids to provide additional renewable energy to the grid, while companies will be allowed to produce unlimited electricity for their own use, Ramaphosa said in his state-of-the-nation address in Cape Town on Thursday. Additional capacity will be purchased from existing solar and wind plants, and independent producers will also be permitted to sell their output directly to municipalities.

“Over the next few months, as Eskom works to restore its operational capabilities, we will be implementing measures that will fundamentally change the trajectory of energy generation,” Ramaphosa said.

Since he succeeded Jacob Zuma as president in February 2018, Ramaphosa has faced mounting pressure to revive the economy and create jobs for the 29% of the workforce that’s unemployed.

Efforts to ignite growth have been constrained by electricity shortages, with Eskom forced to implement rolling blackouts as its ageing plants struggle to keep pace with demand. The utility, South African Airways and several other state companies have also placed the government’s already stretched finances under even more pressure with constant demands for bailouts they say they need to keep operating.

Ramaphosa warned that Eskom’s current debt trajectory was unsustainable and said Finance Minister Tito Mboweni would announce measures to cut spending when he delivers his budget speech on Feb. 26. The government is in talks with labor unions about reducing the state’s wage bill, he said.

Other highlights:

  • A sovereign wealth fund will be established to preserve the nation’s wealth.
  • The government will press ahead with plans to establish a state bank.
  • Far-reaching economic reforms, including a number that were proposed by the National Treasury, will be implemented.
  • State-owned companies will be rationalised and repurposed.
  • South African Airways will be restructured to ensure it is commercially and operationally sustainable.
  • Efforts will be stepped up to tackle crime and corruption.
© 2020 Bloomberg L.P.

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Preserving wealth is not the ANC’s strong point. Stealing wealth is.
Too little to late?
Sona Corona?

a Sovereign wealth fund for a broke country … wtf

Time to put pen to paper and sign!
Without it, this remains hearsay.

Unsurprisingly, there’s nothing profound or extraordinary mentioned in the SONA then…?
Govt to set up another looting ‘fund/bank’;
They still regard themselves to be in control of SAA;
and, all the usual ‘rhetoric’ to much while SA inc. gets sucked down the tube.
Bravo.

And the unlimited self generation has a nasty little caveat – everything over 1 MW requires a Nersa generation licence. Dont worry it only takes 120days.

We have had 1 – 10 MW for nearly a year now – they havent approved a single licence : supposedly because they have never repeated a complete application (I asked them)
I also have their licensing process very very onerous and complex

End of comments.

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