President Ramaphosa Outlines Long-Term Plans to Address Load Shedding, Urges Public Cooperation

President Cyril Ramaphosa has reaffirmed the South African government’s determination to resolve the ongoing energy crisis as quickly as possible.

Speaking during The Presidency’s Budget Vote at the National Assembly, the President highlighted the prioritization of ending load shedding and achieving energy security. He provided updates on the progress made thus far and emphasized the need for public cooperation in overcoming the challenges.

The President underscored the implementation of the Energy Action Plan, which was introduced nine months ago. Notably, the government’s reform of private electricity generation has yielded promising results, with over 100 projects representing more than 10,000MW of new generation capacity currently in various stages of development. These projects have attracted significant investments totaling over R200 billion. President Ramaphosa emphasized that the reform process has also been successful in attracting investments from women-led businesses, with the Northern Cape alone receiving investments of R100 billion in renewable energy, leading to economic growth and job creation.

President Ramaphosa further highlighted the fruitful outcomes of the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). This program, aimed at reducing dependence on diesel-powered Open Cycle Gas Turbines, has already seen three projects entering the construction phase, while an additional five projects are expected to reach financial close in the current quarter. Project agreements have been signed with 25 preferred bidders from Bid Window 5 and Bid Window 6. The President announced plans to procure over 10,000MW of additional generation capacity from wind, solar, gas, and battery storage in the coming months, further contributing to closing the energy supply shortfall.

The President acknowledged the ongoing unbundling of Eskom, South Africa’s state power utility, into three separate entities. He assured the public that this process is well underway, drawing inspiration from successful similar endeavors in other countries. The establishment of the National Transmission Company of South Africa as an independent subsidiary of Eskom has made significant progress, and the President expressed his aim to appoint an independent board for the new transmission company by the end of June. Additionally, efforts are being made to address Eskom’s debt burden, with the recent budget allocating R254 billion in debt relief, contingent upon certain conditions. This relief is expected to alleviate pressure on Eskom’s balance sheet, enabling necessary maintenance and supporting the restructuring of the electricity market.

President Ramaphosa emphasized the government’s pursuit of sweeping legislative reforms that will permanently resolve the energy crisis. The Electricity Amendment Bill, already introduced, aims to establish a competitive electricity market and facilitate the unbundling of Eskom. Another key legislation, the Energy Security Bill, is set to streamline the regulatory framework and expedite the construction of renewable energy projects. The President urged members of the National Assembly, from all political parties, to pass this critical legislation promptly, adhering to parliamentary processes.

While addressing the immediate challenge of load shedding, President Ramaphosa called upon all South Africans to contribute by adopting energy-saving practices.

With a demanding winter ahead and an expected rise in electricity demand, he emphasized the significance of actions such as switching off lights and appliances when not in use, reducing geyser temperature to 60 degrees, installing geyser blankets or timers, and turning off unnecessary equipment like pool pumps. By collectively implementing these simple measures, the President estimated that up to 1,000 MW of demand could be reduced, equivalent to one full stage of load shedding.

As the South African government remains committed to resolving the energy crisis, President Ramaphosa urged the nation to unite in its efforts, emphasizing the importance of both short-term cooperation and long-term reforms to achieve sustainable energy

Source: Bussinestech