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Companies can produce up to 100MW of power – Ramaphosa

Up from the 10MW mooted by minerals resource minister Gwede Mantashe.
President Cyril Ramaphosa. Image: Waldo Swiegers, Bloomberg

In a surprise move, President Cyril Ramaphosa has announced that the government will increase the generation threshold for companies to produce their own electricity without a licence to 100MW.

The move to increase this figure came as a shock because it’s far higher than the 10MW mooted by minerals resource minister Gwede Mantashe in his departmental budget speech just a few weeks ago.

Back then Mantashe said the department chose this cap, instead of the 50MW called for by many in the business world, as there was no demand for it. In the speech, he cited a survey which has had its accuracy called into question.

During the media briefing, Mantashe acknowledged that Ramaphosa played some part in getting him to change his mind.

“The president was twisting my arm to move in this direction.”

The sudden move to increase the cap comes as the scale of rolling blackouts, commonly referred to load shedding has increased over the past few days. Breakdowns at the power utility, Eskom’s, ageing fleet of coal-fired power stations has seen it go from Level 1 to Level 4 over the past few days.

The deepening of the crisis has spurred the government to not only increase the cap of how much can be provided but also who they can provide to.

Ramaphosa says that companies looking to generate 100MW are free to sell to third parties, but in doing so they still have to abide by the regulations set out by the sector regulator, Nersa.

Mantashe said that if all goes to plan, companies will be allowed to self generate within 60 days of the gazetting of the changes to the regulations.

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Ja no well fine.

Let us suppose that industry widely implement embedded generation (which I am sure the will) then were will Eskom get the revenue from to supply those who do not pay and everyone else who does not have the money to install alternative energy???

This is a sword of Damocles that not only affects Eskom but also the ANC and future stability in this country !!!

Exactly who will have to pay for the maladministration of Eskom and all its debt Mr. President ???????????

The Taxpayers will pay for Eskom, don’t worry. You know, the 6% of the population that pay >90% of the income tax in the country.

I want him to articulate it as they have not thought this through properly.

You’re too negative.

privatised-production: Government just adds on their margin to make money as well.

Consumer pays for everything but private production should increase in competitiveness (unlike eskom).

Yes there are many other issues (we should never have go this bad to start).

But let’s celebrate wins when we get them (which is not often).

I am not sure that this is actually the right step to solving Eskom’s problems. Allowing paying consumers to produce their own electricity, reduces the number of potential customers that Eskom can receive income from. I do not how do dig yourself out of the hole by selling to less customers?

Ja right — Like cape town suddenly audits rooftop solar with an eye to extracting a levy from owners.
Not negative but weary of smiling politicians !!!

It is a step in the right direction, that is what the excellent president is doing.

President Ramaphosa has done so much in three years.

Imagine if we had him thirteen years ago?

Oh please!

Their own party is bankrupt, service delivery Nationally has collapsed, corruption is more rife than it’s ever been, the threat of changing article 25 of the constitution, bankrupt ANC Municipalities, the State has failed, Ramaphosa very vocal on excelling BEE, sidelining excluding minorities with Covid grants,

Don’t forget, he’s the man who put the frogs in the pot turning up the heat

Past 13 years? He’s always been there and never did a thing

He’s what the Afrikaners call a “mooi weers vriend” Can’t trust a word the ANC say

A bankrupt party Governing a Country!

Have you ever ?

Yes imagine, if the past 26 years are anything to go by. It will be a horror movie.

Are you swigging cough syrup again?

Speculator – you are very funny ! Made my day .

What did the frog boiler do all the years back in the ESKOM war room ?

Ever hear of SCALING BACK? That’s what a business or economy usually does that makes financial losses. Scale back and refocus or diversify …. Systematically closing those loss-making, crumbling … 50+ year old power plants … that’s business as usual….

Establishing relations with businesses and customers, diversifying into other business sectors and areas related to electricity production…. reducing business employee numbers … in order to grow the business later… and to employ more people…

It’s called business. Business as usual. It’s why the US has 300+ electricity producing companies employing millions and South Africa has only 1 failing government owned business dragging our entire credit rating down… See the comparison … US employment is low – at below 10% and have been as low as 2.3% in recent years and that’s despite the US having total market and labor market flexibility when it comes to contract work, hiring and firing … 300 electricity producing companies. Think about that!

This shows just how close to the wire the current situation is. Embedded generation legislation within 60 days? The ANC government has never worked so fast on a major economic talking point. Something they know has got them scrambling to keep the lights on.

I think it’s great. Its about time. With less demand on Eskom to keep old and dated equipment functional. Eventually mothballing old expensive equipment should bring down costs and debt.

If you want something done properly, fire Gwede Mantashe before you start.

Actually the Whole Zupta Clan needs to be dismantled.

One by one they getting implicated… its going to be slow

if one reads between the lines…….

Acknowledgment that we in serious serious trouble, which will not be fixed anytime soon

At last, how long does it take to commission a 100 MW plant?

So why 100MW now? Why not any amount? What is the rationale here?

Bcause govt don’t want companies competing directly with Eskom. In any case, 100MW = powering 100,000 households. This is a good start, but still not enough, in my opinion.

Dog: people throw numbers around easily. 100MW is a lot (whether wind solar diesel whatever). Very few sites have 100MW of grid supply (prob fewer than 20 when look at single connection?) and all the substations and transformers that go with being that size.

In land area 100MW solar probably looking at about 100 hectares ground mount…

No rationale here this is the African National Corruption at work.

CR sensed there must be a little anger brewing so he thought best to throw a bone for us to gnaw on.

100mw 1000mw they have no clue what is the difference so 100 mw sounds like a lot.

Wonder if uncle Gwede will still be getting his ships as a consolation prize? Surely there will be some sort of trade-off here.

The very last paragraph again says it all!

Yes, does he actually think a power station shoots up overnight like a mushroom???????????

At least our President has finally made a decision. Let us applaud him

for that maybe it will give him confidence to make a few more.

Nice one Cyril
Nice one son
Nice one Cyril…
LET’S HAVE ANOTHER ONE

Finally…good move. However, we await the finer details on this proclamatim. As they say, the devil is in the details

so, if just thirteen companies generate 100mw of their own power, why does SA need powerships? That’s more than the powerships 1220mw of emergency power, and Eskom can then factor in at least 1300mw of electricity off the grid. Maybe Chris Yelland can comment?

Humpty??

The question is :

Is he a stool or a Pouffe. Or both?

Keep in mind we have to still export power to countries that cant pay or we generate with diesel and they just pay the cheap rate. Then we have 5 to 10 million foreigners mostly undocumented that has to be provided for.

Wow. Aren’t we glad we have a SA tax payer???

Hey “HUMPTY”!!! If you think it is sustainable??? Hahahahaaaa!!!

When I see it, I will believe it. How’s each ministers lifestyle audits going Cyril? How many ministers have you fired in your head will roll bs? The list of promises is getting very long now. Fool me once, shame on you. Fool me again, shame on me.
Mark my words

Puhlease! Election time around the corner, now the ruling regime wants to appear as the heroes. We all know what type of people they are.

Genius move. You build it and then we steal it through EWC.

Who will be stupid enough to do this?

Conspiracy theories 🙂

There should be no Eskom, power should be supplied by the private industry only. More competitive, less fat cats(hopefully)

The “hopefully” is always problematic, isn’t it? Why should we just assume benefits rolling out of private offerings when there’s always evidence to the contrary, like price gouging?

It’s actually a great idea. Let companies be “energized” by the idea of self-sufficiency. Then, as Eskom, sell off old non-strategic infrastructure and actually start re-building. Use your financial muscle to be energy efficient enough to entice companies back to the grid again. Might take a decade, but doable, but with many planned blackouts in the process. I wish that was the thinking behind this, but we’ve been burned so many times before by this government

End of comments.

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