(3 minutes read)
The National Energy Regulator of South Africa (Nersa) approved two licences that were outstanding for the establishment of the National Transmission Company of South Africa (NTCSA). This approval to Eskom’s transmission company gives the utility an opportunity to boost the security of power supply in South Africa.
The National Energy Regulator of South Africa (Nersa) approved two licences that were outstanding for the establishment of the National Transmission Company of South Africa (NTCSA). This approval to Eskom’s transmission company gives the utility an opportunity to boost the security of power supply in South Africa.
The establishment of the NTCSA will enable the company to enter into import/export agreements with countries in the Southern African Development Community (SADC), thereby increasing the security of supply.
This would also give an incentive for private players to participate in the energy market, although they will still be subject to regulations that power producers must follow when applying for electricity tenders to offer services to Eskom. This empowers NTCSA to buy and sell electricity from Eskom power stations, independent power producers, and cross-border imports.
Nersa’s approval of the transmission licence application was a key milestone in Eskom’s unbundling process, which will see the power utility restructured into three separate units dealing with the generation, transmission, and distribution of electricity. The NTCSA will operate the transmission system and perform integrated roles to ensure the integrity of the power system. This entails performing the role of transmission network service provider, system operator, transmission system planner, and grid code secretariat.
Read Also:
https://trendsnafrica.com/south-africa-to-face-further-power-failures/
The NTCSA is a wholly owned subsidiary of Eskom Holdings, which is being restructured into three separate subsidiaries: Generation, Transmission, and Distribution as part of a government commitment to transform the electricity industry and leverage new investment through public-private partnerships to resolve the country’s power crisis.
