Private power producers could generate a third of Eskom's current installed capacity in seven years

[Jan]

R100 billion and 15,000MW of private power — The impact of Ramaphosa's surprise announcement

Government's decision to increase the threshold for embedded private power generation could unlock investments of up R100 billion over the next five to seven years and add 15,000MW of capacity to South Africa's strained electricity grid.

This is according to experts who spoke to Sunday newspaper Rapport about President Cyril Ramaphosa's surprise announcement on Thursday that private companies and individuals will now be allowed to build generating projects of up to 100MW in capacity without a licence from the National Energy Regulator of South Africa.

The president said while measures taken by Eskom to maintain its ageing infrastructure and increase electricity availability in the county were positive and necessary, they were not enough to address the immediate and significant energy shortfall in the country.

“Incremental measures will not be sufficient to meet the scale of this challenge,” Ramaphosa said.

 

[RedViking]

Lol

 

[Lupus]

5 years again every thing will be fine in 5 years.

 

[chrisc]

A gigantic step in the right direction which should have been started in 2005

 

[jambai]

Essentially it’s a good move for sa and a hit on anc ideology that everybody but them knows will never work . Ie centralised state control

 

[Arzy]

5 years again every thing will be fine in 5 years.

Even 5 years is wishful thinking.

The announcement is a step in the right direction but the bureaucracy and licensing requirements are there to ensure that this doesn't get off the ground quickly unless you are of the right faction and very well politically connected.

Where we could have well run and efficient projects spring up quickly it's going to end up being a case of every Cadre first taking a 25-50% stake in these entities, calling it empowerment and signing up exorbitant long term pricing agreements.

When the budget is blown and public opinion of these interventions has gone negative then possibly we'll see who ever is left being allowed to assist.

 

[mypetcow]

Talk about incentive! This policy will if enacted lead to substantial private sector investment in energy generation even from overseas. Looking forward to it

 

[now05ster]

Now we just need a MYBB poll as to whether or not we think this is good enough for private power producers to help out with our electricity crisis. (Preferably using better a English sentence structure)

 

[Polymathic]

Wouldn't be surprised if this happens in 3 years

 

[mak2000]

Likely to happen earlier and it will also kick Eskom into action

 

[Swa]

Duma Gqubule

And the clowns come out of the closet.

 

[Pineapple Smurf]

R100 BILLION and BEEEEEEEEEE Tenders be like smiling

 

[Pineapple Smurf]

Now we just need a MYBB poll as to whether or not we think this is good enough for private power producers to help out with our electricity crisis. (Preferably using better a English sentence structure)

Dont forget to include Other in the poll

 

[now05ster]

Dont forget to include Other in the poll

Correct. Always.

 

[Adeptus Mechanicus]

5 years is certainly do-able, however in this context "private" refers to well connected, party loyal individuals who will do one of 2 things:
1) Behave as middle-men driving the price of generation up substantially from what it should be.
2) Deliver a substandard solution.

...or perhaps both.

 

[Herr der Verboten]

R100 billion and 15,000MW of private power — The impact of Ramaphosa's surprise announcement

Government's decision to increase the threshold for embedded private power generation could unlock investments of up R100 billion over the next five to seven years and add 15,000MW of capacity to South Africa's strained electricity grid.

This is according to experts who spoke to Sunday newspaper Rapport about President Cyril Ramaphosa's surprise announcement on Thursday that private companies and individuals will now be allowed to build generating projects of up to 100MW in capacity without a licence from the National Energy Regulator of South Africa.

The president said while measures taken by Eskom to maintain its ageing infrastructure and increase electricity availability in the county were positive and necessary, they were not enough to address the immediate and significant energy shortfall in the country.

“Incremental measures will not be sufficient to meet the scale of this challenge,” Ramaphosa said.

Here's a radical thought: make it unlimited and lift all restrictions

 

[randomcat]

According to Gqubule, it was not clear how allowing the unlicensed private generation of up to 100MW will benefit consumers, who will still be served by Eskom for the next 5–10 years.

It will help reduce loadshedding

 

[Cosmik Debris]

Here's a radical thought: make it unlimited and lift all restrictions

That will result in this:

Regulation with deadly products is always a good idea.

 

[krycor]

5 years again every thing will be fine in 5 years.

All electricity projects in generation that’s somewhat substantial is in x years..

Btw this all assumes the placement of the IPP is where the transmission lines are.

2ndly 1/3rd more power sounds good till you factor in removal of older coal fleet.. so yes, power will remain a problem vs gdp growth until more power added faster than used & removed.

 

[Geoff.D]

5 years again every thing will be fine in 5 years.

Two Weeks and 5 years. The two magic time scales. What about 1 Day?