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
Is South Africa in a state of procurement limbo? Where to from here, for now?
Public procurement in South Africa by Sarah Moerane, Director, and Koketso Rapoo, Candidate Attorney Public procurement in South Africa is [...]
Putting Directors on Notice! – Section 129(7) of the Companies Act
Section 129(7) of the Companies Act The often "overlooked" Section and its meaning for directors of financially distressed companies by [...]
Explanatory Note
"No right, including the right to strike, is absolute." (AMCU and Others vs Anglo Gold Ashanti and Others) The right [...]
National minimum wage increases for 2022
Adjusted national minimum wage Following a mandatory annual review process, the Minister of Employment and Labour announced increases to the [...]
Earnings threshold increase for 2022
Annual earnings threshold increase for 2022 The Basic Conditions of Employment Act 75 of 1997 ("BCEA") empowers the Minister of [...]
Is a report prepared in terms of S 165(4) of the Companies Act privileged?
by Jones Antunes Director, Danielle Hertz, Associate, and Marisha Krishna, Candidate Attorney This aforesaid is an issue that recently enjoyed [...]
