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SA cabinet approves power plan

The plan must still be publicly gazetted, cabinet says.

South Africa has approved the promulgation of its long-delayed plan for electricity generation until 2030, a cabinet statement said.

The Integrated Resource Plan (IRP) must still be publicly gazetted, it said.

Minister of Mineral Resources and Energy Gwede Mantashe will on Friday brief the media on the plan.

The IRP is a national electricity infrastructure development plan based on least cost-electricity supply and demand balance, that considers security of supply and the environment, according to the Department of Mineral Resources and Energy.

In a statement released on Wednesday, Business Unity South Africa (Busa) urged the expedited gazetting of a “least-cost, least-regret [IRP] option that identifies the optimal energy sources required to power the economy and sustain
and create jobs,” adding that this would be the first step towards the energy sector’s stabilisation.

“The IRP has been subject to a substantive Nedlac process, and any further delay will prejudice urgent procurement and investment decisions that are necessary to ensure electricity supply security and the avoidance of further load-shedding. As the first quarter GDP results show, load-shedding significantly damages economic growth. The gazetting of the IRP needs to be followed by an immediate ministerial determination for the procurement of new generation capacity,” the business lobby group stated.

Bianca Botes, Treasury Partner at Peregrine Treasury Solutions says the news is a great relief after months of uncertainty, “in the midst of yet another round of load shedding implemented by Eskom on Wednesday, which is expected to last well into next week. The financial situation of Eskom and its ability to sustain electricity supply to SA will ultimately drive foreign direct investment as well as economic growth in this country,” she added.

The rand is currently trading at R14.80/$, R16.45/€ and R19.13/£.

Africa’s most industrialised economy faced a second consecutive day of power cuts on Thursday. 

Developing story. 

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The Rand rally is from dollar weakness. No one believes ANC plans anymore.

Agreed.

Also don’t understand why the great “relief”. Its the same people that messed it up in the first place. Does anybody really belief they can come up with a workable solution?

Laughable.

Planning is one (that by the way has allegedly been going on for some time now)and publishing it in the Government Gazette is pretty easy.
Implementing it is quite another thing and on a totally different level. Ruling Party, now show us how and when and if you are going to walk the walk?

100% spot-on! The ANC, like any organisation, need SKILLS to “implement” decisions, that’s why it’s so lacking.

The past two decades the skills issue has taken a back seat to “transformation” targets. (In fairness, there are good & well-deserved AA/BEE candidates doing exemplary work, but far too few)

More transformation = less implementation.

(proof? The increasing number of Eskom employees over past few years, led to reduced generation output as a % of ‘installed’ capacity)

Let’s hope for the best, shall we?
But don’t hold you breath.

Another promise they can add to a ANC voting poster. Logical stuff now becomes a magnificent achievement for these criminals and procrastinators.

100%. doing the bleeding obvious becomes a huge celebration of achievement

Heard something like this before …….something about rearranging the deck chairs on the Titanic !

Does this mean that another round of bonuses for senior Eskom officials running into the many millions will be payable..?

Lol.. The Rand rallied because of that announcement? Dont be naive..It’s $ weakness as DogeatDog suggests

“The plan must still be publicly gazetted, cabinet says”
I certainly hope so. That is how the legislation is supposed to work..
Funny thing though, the whole process is really easy compared to actually implementing it successfully.

Good Luck.

The news caused the rand to strengthen against the dollar? It requires gigantic amounts of bond purchases and record-low interest rates by the Federal Reserve to weaken the dollar. Luthuli House can weaken the rand unintentionally by simply speaking their minds.

The fact that the rand strengthened somewhat against the dollar says nothing about the local economy. It simply says that the Federal Reserve is in control of the dollar and that their intended strategy is bearing fruit.

While we are on this topic, for those market technicians among us, the dollar is mapping out a monthly bearish reversal on the dollar index, to move the dollar weaker in other words. This is a significant event because the MSCI Emerging Markets Index outperforms the World Index during times of dollar weakness. This implies that the JSE will begin to outperform developed markets after a decade of underperformance. Those who are sceptical of this fact will no doubt outnumber the realists 99 to 1. This is quite normal at inflexion points in the market.

The basis of the plan on a quick scrutiny is new generation capacity based on modular nuclear and low emission coal fired power stations. If my assessment is correct it must be the joke of the century.Modular nuclear is still in the research phase and may see the light of day 2 decades from now.Nobody has the foggiest idea of what they will cost …eventually.
Low emission coal plants.What on earth is that and in which century do these fools live. Have they not heard Investors and Banks publicly announcing NO MORE MONEY for coal – be it mining or power generation or fuel.Please tell me how these idiots get to run a country!!!

Yet another meaningless publication that will not be maintained by the African National Corruption. We have no faith or confidence in the African National Corruption as continuously proven by them!

My plan in one sentence: Get competent and dedicated people to do the job. It seems simple but when those tasked with the plan are obsessed with race nothing is simple.

We’ve heard it all before. Parts of Randburg have been without power for 12 hours today. Loadshedding and the so-called “in surge” knocks out the substations. Looks like it’s going to be a 18 hour power cut just for Thursday, including the entire business day cycle. This in an area where there are many businesses and factories. So say goodbye to the taxes you thought you would collect today.

Oh yes, the ANC and plans. I suggest they create a plan that even a complete idiot could implement and then they’ll have a chance of implementing for once. They’ll only have to implement once to believe they are the greatest implementers of all-time.

The powers out for 2nd time today, 5 hours. On Saturday itll be for 9 hours – 2 sets of 4.5 hours because of the second set ending after midnight so it doesn’t count as same day. Who cares about long term plans when there wont be an economy left.

I am so exasperated by the useless and idiotic ANC responses. Structures will change nothing. Action will. Soweto owes almost R20bn to Eskom and will never be paid. AND they experience no load shedding. Cut off Soweto now and force them to pay for electricity now. No load shedding needed as all electricity to Soweto will be off and no one else is impacted.
Nowwe have non payers having 100% electricity availability.
Take the plunge and lose the local elections but by the next national elections the Soweto issue will be history and the economy will be in a better shape which will be good news for ANC.
Action not plans to be implemented is needed now.

Parliament approving the Eskom plan has the same effect as me approving the national budget.

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