The KwaZulu-Natal provincial executive council (PEC) has approved the eThekwini metropolitan municipality’s procurement plan for an initial 400 MW of new generation capacity from independent power producers. This will create 8 000 job opportunities through a public-private partnership (PPP), mayor Mxolisi Kaunda announced at the Energy Transformation Summit, in Durban, on March 1.
The reform-related conditions outlined by the National Treasury as part of a R254-billion Eskom debt-relief package – including the concessioning of coal power stations to the private sector and allowing for private sector participation in the building and operation of grid infrastructure – “make sense” and are necessary both in the context of the just energy transition and revelations of embedded corruption withing Eskom’s coal supply-chain. This is the conclusion arrived at by a team of economists at the University of Witwatersrand’s Public Economy Project, who have published an analysis and commentary on the 2023 Budget.
Civil society organisation the Organisation Undoing Tax Abuse (Outa) says the newly published state of disaster regulations appear to be intended to allow a quick contract with floating power company Karpowership by fast-tracking or bypassing environmental authorisations, procurement rules, public participation and even legal challenges.

“Outa is determined to continue our legal challenge to review the declaration of a national state of disaster and our challenge to the issuing of the Karpowerships’ generation licences by the National Energy Regulator of South Africa (Nersa). Both these matters are before court.

“The regulations confirm Outa’s concerns that the state of disaster will be used to remove regulatory provisions and oversight to enable the fast-tracking of unaffordable generation contracts,” it avers.

In the wake of national government announcing various incentives to get local businesses to invest in renewable energy generation as part of the solution to the national energy crisis, as well as advancing decarbonisation, professional services firm PwC says, equally, businesses have to improve their environment, social and governance (ESG) credentials. Currently, loadshedding is the number one brake on economic and employment growth, the firm states. Aside from the newly announced solar incentives for businesses and households, it says, South African legislation already provides several other green grants, incentives and relief measures that encourage companies to implement climate change mitigation measures.
The Western Cape’s treasury department warned that municipalities, which have outstanding Eskom debt, could see it balloon in the new financial year. The department briefed the standing committee on local government on Tuesday about late payments to Eskom.
North West has the potential to attract at least R50-billion worth of investment in the renewable energy sector, in addition to the private sector renewables investments that are already under way, Premier Bushy Maape has said. He noted during his State of the Province Address last week that the province’s executive council has resolved to invest in solar panel manufacturing.