Legal updates and opinions
News / News
Thank you energy minister, now let’s hurry
Former Energy Minister Jeff Radebe has at last told the National Energy Regulator of South Africa (Nersa) to license applications from businesses allowing them to generate their own power and feed it into the national grid.
Radebe’s welcome move will certainly help in alleviating electricity supply constraints as it opens the generation market to allow the private sector to provide power together with Eskom.
But more needs to be done – and in a hurry to prevent the lights going out again.
Nersa is only allowed to license applications from industrial, agricultural, mining and similar businesses to generate their own capacity for projects between 1 megawatt (MW) and 10MW – without waiting for the promulgation of the new Integrated Resource Plan (IRP) which has been under discussion by the National Economic Development and Labour Council (Nedlac) for many years.
It shows what can be done when you work around the lack of progress that has hampered Nedlac for so long now. The draft IRP, tabled in August 2018, is likely to take several more months before consultation is complete.
But the newly appointed Minister needs to go even further to allow smaller generation by businesses and households that want to produce energy, mostly for their own use. Typically these entities would produce up to 1MW and will need to be registered. Nersa expects to be able to register these entities within the next two to three months.
But this is where they need to hurry, provide clarity and get this administrative hurdle out of the way.
As winter approaches, South Africa’s economy cannot afford to wait for months on end for these smaller projects to be approved. The morale of the country is also important and it would be real proof of government’s new broom election promise for there to be fewer blackouts (ideally no blackouts at all)- and demonstrable steps to a long term solution.
Fortunately, households producing less than 100 kilowatts (kWh), typically by way of solar panels, do not need to register with Nersa.
Latest News
Caught on the sidelines: The cost of employee sick leave abuse
Danelle Plaatjies - Candidate Attorney and Yendiswa Sithole - Candidate Attorney What is an employer to do when an employee [...]
Striking a balance: The impact of strike violence on protected strikes
Danelle Plaatjies - Candidate Attorney and Hanan Jeppie - Candidate Attorney Issue Whether a protected strike that was characterised [...]
Court orders un-redacted documents be provided to SARS
Section 46 of the Tax Administration Act, 2011 (TAA) allows SARS to request 'relevant material' in relation to a taxpayer [...]
The Competition Commission’s Revised Final Public Interest Guidelines: A Critical Framework for Merger Analysis
and Chiara Ferri - Candidate Attorney Introduction The South African Competition Commission ("Commission") has published its final revised Public Interest [...]
Constitutional Court considers evictions in the inner-city of Cape Town
On 27 February 2024, the Constitutional Court heard oral arguments in the matter of Charnell Commando and Others v City [...]
Newsflash: The Competition Authority of Kenya clarifies the position on Administrative Remedies and Settlement.
and Lwazi-Lwandile Simelane - Candidate Attorney On 21 March 2024, the Competition Authority of Kenya ("the CAK") announced that it [...]