34. New generation capacity
(1) The Minister may, in consultation with the Regulator -
(a) determine that new generation capacity is needed to ensure the continued uninterrupted supply of electricity; (b) determine the types of energy sources from which electricity must be generated, and the percentages of electricity that must be generated from such sources;
(c) determine that electricity thus produced may only be sold to the persons or in the manner set out in such notice;
(d) determine that electricity thus produced must be purchased by the persons set out in such notice;
(e) require that new generation capacity must -
(i) be established through a tendering procedure which is fair, equitable, transparent, competitive and cost-effective;
(ii) provide for private sector participation.
(2) The Minister has such powers as may be necessary or incidental to any purpose set out in subsection (1), including the power to -
(a) undertake such management and development activities, including entering into contracts, as may be necessary to organise tenders and to facilitate the tendering process for the development, construction, commissioning and operation of such new electricity generation capacity;
(b) purchase, hire or let anything or acquire or grant any right or incur obligations for or on behalf of the State or prospective tenderers for the purpose of transferring such thing or right to a successful tenderer;
(c) apply for and hold such permits, licences, consents, authorisations or exemptions required in terms of the Environmental Conservation Act, 1989 (Act No 73 of 1989) or the National Environmental Management Act, 1998 (Act No 107 of 1998), or as may be required by any other law, for or on behalf of the State or prospective tenderers for the purpose of transferring any such permit, licence, consent, authorisation or exemption to a successful tenderer;
(d) undertake such management activities and enter into such contracts as may be necessary or expedient for the effective establishment and operation of a public or privately owned electricity generation business;
(e) subject to the Public Finance Management Act, 1999 (Act No 1 of 1999), issue any guarantee, indemnity or security or enter into any other transaction that binds the State to any future financial commitment that is necessary or expedient for the development, construction, commissioning or effective operation of a public or privately owned electricity generation business.
(3) The Regulator, in issuing a generation licence -
(a) is bound by any determination made by the Minister in terms of subsection (1);
(b) may facilitate the conclusion of an agreement to buy and sell power between a generator and a purchaser of that electricity.
(4) In exercising the powers under this section the Minister is not bound by the State Tender Board Act, 1968 (Act No 86 of 1968).
