(4 minutes read)
– President Ramaphosa may allow independent power producers to
set up captive power units based on renewable energy to meet their
energy requirements at least partly.
· -At a recent economic conference held at Johannesburg, South
African President mooted self –generation of electricity giving hopes
to the industry, mining and household sector that they would be able
to set up their own power units to meet the demand.
· -The trade unions including those belonging to ruling party,
African National Congress (ANC), are skeptical about the move and
apprehend that the move is to bring privatization of the power sector
through the backdoor.
Deeply concerned by the nation-wide power cuts and difficulties being
faced by the mining and manufacturing sectors alike, President
Ramaphosa may allow independent power producers to set up captive
power units based on renewable energy to meet their energy
requirements at least partly. Of late, economic output had come down,
which had affected the investor’s confidence on the South African
economy. This was largely due to erratic power supply that crippled
manufacturing and mining sectors alike. A few years back South Africa
was hailed as the most happening place in Africa.
Ailing state-owned utility Eskom provides more than 90% of the
country’s electricity. But of late, it regularly struggles to meet
demand on account of breakdowns at its coal-fired power plants.
A number of companies including mines want to build their own
renewable energy plants to reduce their reliance on Eskom. But there
are policy glitches to secure the necessary regulatory approvals.
At a recent economic conference held at Johannesburg, South African
President mooted self –generation of electricity giving hopes to the
industry, mining and household sector that they would be able to set
up their own power units to meet the demand. Despite that lauded
statement, people are awaiting the policy to be rolled out at the
earliest.
The Minerals Council, which represents the mining interests of the
country, has welcomed the statement of intent of the President and
urged the government to act fast and bring online new power sources
and ease licensing rules.
Roger Baxter, chief executive of the Minerals Council, is of the view
that miners could generate between 500 megawatts (MW) and 1,500 MW of
their own generating capacity over the next few years upon easing the
regulations.
However, there is a glitch. The trade unions including those
belonging to ruling party, African National Congress (ANC), are
skeptical about the move and apprehend that the move is to bring
privatization of the power sector through the backdoor, which may cost
several jobs. Power sector employees are unionized and the government
would be circumspect in bringing such laws for fear of political
backlash. Coal lobby is not taking the present move kindly and
\blamed renewable energy firms for hastening Eskom’s financial
decline.
