The Department of Mineral Resources and Energy (DMRE) reports that 15 renewables refinancing applications have been approved under an initiative launched in October 2019 that sought to reduce tariffs arising from private generators procured during the initial bidding rounds of the renewables procurement programme. The department claims that the refinancing concluded to date will result in nominal savings of about R4-billion over the remaining terms of the respective power purchase agreements.
Forestry, Fisheries and Environment Minister Barbara Creecy’s decision to allow Eskom to operate its Kusile power station without the use of flue gas desulphurisation signals “urgency in a time of crisis” and is a welcome decision in the context of South Africa’s electricity crisis, says Business Unity South Africa (Busa). The organisation notes that the continued integrity of the electricity depends on the Medupi and Kusile power stations being operational.
Industry organisation the South African Photovoltaic Industry Association (Sapvia) has begun to track the uptake of private generation projects for different technologies. “As a start, we are tracking the National Energy Regulator of South Africa- (Nersa-) registered projects. We’ve already observed exponential growth in the registration of generation facilities. We anticipate that amendments to Schedule 2 of the Electricity Regulation Act will further catalyse the deployment of renewable energy technologies,” says CEO Dr Rethabile Melamu.
South Africa’s transition from fossil fuel dependence to a renewable energy-based economy will add more jobs than will be lost in fossil fuel value chains, but the skills that young people have to participate in the transition, including by establishing careers and businesses in nascent value chains, is a central element of any just energy transition discussion. These were some of the views expressed by a range of energy industry representatives who spoke during the ‘Youth dialogue on the Just Transition’ webinar hosted by the Department of Mineral Resources and Energy (DMRE) and the South African National Energy Association on March 16.
Strong trading metrics across real estate investment trust (Reit) Hyprop’s portfolio of retail properties in mixed-use precincts in key economic nodes for the six months to December 31, 2022, have led the company to conclude that these areas have recovered from the impacts of Covid-19 and that retail remains relevant to consumers.
The National Energy Regulator of South Africa (Nersa) has published retail tariff adjustments for 2023/24 that include a 10% increase for poor residential customers, instead of the 18.65% approved for the standard tariff. This lower hike to poor customers will be paid for through a 29.53% increase in the so-called affordability subsidy paid by large electricity consumers, which will result in their tariffs being hiked by 19.09% on April 1. The adjustments flow from the regulator’s recent approval of Eskom’s Retail Tariff and Structural Adjustment (ERTSA) application, which was submitted following Nersa’s January 12 approval of an average tariff increase of 18.65% for Eskom’s standard tariff customers.
Greenpeace Africa last week disrupted Mineral Resources and Energy Minister Gwede Mantashe’s opening speech at the Africa Energy Indaba in Cape Town by staging a silent protest in front of the podium. Five protestors held up yellow placards that declared ‘Coal = Corruption’, ‘Coal = Loadshedding’ and ‘Gwede Stop Blocking Renewables’.
The Drakenstein municipality, in the Western Cape, has reiterated its commitment to delivering quality municipal services and that its Eskom Loadshedding Resilience Plan will be delivered sustainably.
Executive mayor Conrad Poole says in a release issued on March 16 that Drakenstein will not be a municipality that misleads its community with quick and grand promises of alternative energy solutions that will supposedly replace Eskom and get the area off the grid.
While electricity generation capacity in South Africa is increasingly being privatised and decentralised, the government has stated that transmission infrastructure must remain in the hands of the public sector to ensure equal access. However, uncertainty remains regarding whether the government will be able to expand the transmission grid sufficiently and quickly enough to accommodate the plethora of renewable electricity generation projects that are being held up by transmission bottlenecks, particularly in the Northern Cape, where the most opportunities for renewable energy generation capacity lie.
The average tariff increase for various categories of Eskom customers arising from the National Energy Regulator of South Africa’s (Nersa’s) recent allowable revenue decision has been tabled in Parliament as is required for these increases to be legally implemented on April 1. On January 12, Nersa approved revenue of R318-billion for the State-owned utility for 2023/24 and R352-billion for 2024/25. Once translated to increases in Eskom’s standard tariff, these revenue increases amount to a hike of 18.65% for this financial year and 12.74% in 2024/25.
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