Economic and energy advisory company Meridian Economics is warning that the implementation of Eskom’s proposed retail tariff plan could severely disincentivise investment into the large distributed generation plants required to reduce, or end load-shedding, in the coming few years. The plan, which the utility says is necessary to rebalance variable and fixed charges in light of technology changes under way in the sector, has already met with stiff opposition from some residential customers and opposition political parties after the plan was submitted to the National Energy Regulator of South Africa for approval.
Although not programmed to do so, South African Mineral Resources and Energy Minister Gwede Mantashe addressed the Ministerial and VIP Symposium of the Africa Oil Week conference and Green Energy Africa Summit, being held in Cape Town, on Monday. Mantashe was programmed to deliver a keynote address at the conference on Tuesday.
A study by global management consultancy Kearney has noted that Southern Africa, which has favourable conditions for renewable energy production, will be able to store renewable energy and export it to areas where renewable energy production is technically or economically limited. “The world’s steadily growing demand for hydrogen is expected to exceed supply by 2030, making now an ideal time to invest. Although Southern Africa has a major opportunity to produce green hydrogen, the region’s demand is projected to be lower than the demand centres in Europe and Asia,” says Kearney partner Prashaen Reddy.
Industry nonprofit the Energy Intensive Users Group (EIUG) welcomes the “overdue reconstitution of the Eskom board” and says “the new board seems complete and well balanced in terms of its skills and experience”. The previous board was “heavily handicapped” with a number of vacancies, which severely affected its skill sets and, thereby, added an enormous task to the existing directors, it adds.
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