In this opinion article, Mike Roussos suggests that a new renewable-energy utility be established within the public sector to ensure that the State plays a direct role in establishing and guiding a new and cleaner energy dispensation for South Africa.
The South African government is raising efficiency levels for high-consumption electrical products, like street lights, in an effort to reduce the energy burden on the national grid, especially as State-owned utility Eskom continues to face constraints in supplying electricity. With experts recommending the country should brace for a protracted period of intermittent power cuts, or load-shedding, for at least another five years, the Department of Mineral Resources and Energy (MRE) and the South African National Energy Development Institute (SANEDI) are developing minimum energy performance standards (MEPS) for streetlights.
The creation of a separate State-owned transmission entity, as part of the restructuring of Eskom into three separate entities responsible for generation, transmission and distribution, has been held up by President Cyril Ramaphosa as key to promoting the purchase of the lowest-cost electricity for businesses and households. In his weekly newsletter, which is dedicated to the reforms under way across State-owned enterprise (SOEs), the President said that the transmission company, which is schedule for establishment by year-end as the Independent System and Market Operator (ITSMO), would be able to purchase power from a broader range of providers, both private and public.
The State-owned gas companies of South Africa and Mozambique have announced that they have exercised their pre-emptive rights to acquire, for R4.15-billion, the 30% equity stake in the Republic of Mozambique Pipeline (Rompco) hitherto owned by Sasol. The announcement follows on from Sasol’s May 14 announcement of a sale and purchase agreement (SPA) – subject to the pre-emptive rights held by Central Energy Fund subsidiary iGAS and Empresa Nacional de Hidrocarbonetos subsidiary Companhia Mocambiçana de Gasoduto (CMG) – with a Reatile-led consortium.
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