A second phase of the partnership launched between government and business to tackle South Africa’s electricity, logistics and crime crises has been launched under the Government of National Unity (GNU), with an immediate goal of raising growth to over 3% from 2025. Speaking at the launch in Johannesburg, President Cyril Ramaphosa described growth as the “glue” that held the GNU parties together, while urging business to work with government to take advantage of the “window of opportunity” opened by the May 29 election results to aim for even higher levels of growth in future.
The electricity subcommittee of the National Energy Regulator of South Africa (Nersa) has recommended the approval of four more electricity trading licences, dismissing the objections raised by Eskom’s distribution division during hearings in July. The recommendation that GreenCo Power Services, Discovery Green, Green Electron Market and CBI Electric Apollo receive national trading licences will now be taken to the Energy Regulator, Nersa’s highest decision-making body, for approval.
Gold miner Caledonia Mining Corporation has entered into a conditional agreement to sell the entire issued share capital of its Zimbabwe subsidiary Caledonia Mining Services (CMS), which owns and operates the 12.2 MW solar plant that supplies power to its Blanket mine, to CrossBoundary Energy (CBE) for $22.35-million in cash. The electricity generated by the solar plant will continue to be sold to the Blanket mine under an exclusive power purchase agreement.
Electricity and Energy Minister Dr Kgosientsho Ramakgopa is confident that State-owned utility Eskom’s proposed tariff increase for direct customers of 36.15%, and a 43.55% hike in municipal tariffs, will not come to pass. On September 24, Engineering News reported that the National Energy Regulator of South Africa (Nersa) had formally published Eskom’s highly controversial price allowable revenue application for the coming three years. Nersa will, in the coming months, hold public hearings on the proposed increases before making a final determination.
German renewable-energy company ENERTRAG has appointment Enos Banda as the new CEO of South African operations. A lawyer by training, Banda is a well-known personality in the South African energy sector having previously headed Eskom Enterprises, chaired South Africa’s energy regulator in the 1990s, and having been a senior executive or board member of both listed and unlisted companies.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa says that government would like to be “ultra-aggressive” in the roll-out of new renewable energy, which he describes as the “future”. However, key structural constraints, including those relating to grid capacity and regulation, had to be cleared to increase the pace of deployment and to ensure that the credibility of the public procurement process in particular was restored.
South African stationery and plastic products manufacturer Penflex will install a hybrid solar PV and battery energy storage system (BESS), which will halve its demand for electricity generated by State-owned Eskom and sustainably cut down on its biggest expense. The impact of the sustainable renewable-energy solution will help to secure the livelihoods of the families of its 300 employees and significantly reduce losses caused by wastage resulting from loadshedding, the company says.
The Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development has signed off on two financing agreements with Madagascar totalling $65-million to boost support for sustainable socioeconomic development and energy transition. A $35-million loan will support the Specific, Measurable, Achievable, Relevant and Time-bound (Smart) Clean Cooking Project, while an additional $30-million loan will help develop transport infrastructure through the Facilitation of Commerce Corridors Project Phase II (PACFC II).
South African mining, industrial and construction industries services provider Provest Group has successfully established a solar energy system at its Steelpoort plant, in Limpopo province. Provest, which has a particular focus on the platinum, chrome and manganese sectors, implemented the solar power project to both boost energy security at, and reduce the carbon emissions of, its Steelpoort facility. “Loadshedding pushed us to explore alternative energy solutions,” explained Provest Plant Manager Martin Kubyane. “Our reliance on diesel generators contributed to increased carbon emissions. However, we recognised that with a solar installation we would be able to secure our power supply, reduce our dependence on the grid and ensure that we can continue to meet our production targets, while also reducing our carbon emissions. As a responsible organisation, the business case was very clear to us.”
South Africa’s ambitious Integrated Resource Plan serves as a “comprehensive roadmap” for meeting the country’s projected electricity demand, balancing financial considerations with climate change commitments to ensure a “sustainable and economically viable energy supply for the future”, says wind energy body South African Wind Energy Association (SAWEA). Wind power, specifically, has achieved remarkable success in the country, with 34 operational wind farms boasting an installed capacity of 3 442 MW. About 3.6-million households are supplied with electricity a year – underscoring its efficacy as a dependable energy source.
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