NWU panel to vote on red tape for private power producers
On Thursday June 10, President Cyril Ramaphosa made the surprise announcement that Schedule 2 of the Electricity Regulation Act is being amended to increase the authorization threshold of the National Energy Regulator of South Africa (NERSA) for projects of integrated production from 1 MW to 100 MW. Integrated generation is when a private company produces electricity for its own use or for the use of others. Now, the NWU expert group that will weigh in on the aforementioned development is comprised of nuclear physicist and former chairman of the South African Nuclear Energy Corporation (Necsa), Kelvin Kemm; Ebrahim Fakir, director of programs at the Auwal Socio-Economic Research Institute; and economist Dawie Roodt.
The virtual event will start at 3 p.m. and will be available on the NWU Business School Facebook page. Ramaphosa’s announcement has been well received by private power producers and, more recently, by Nersa herself. It should mitigate the impact of Eskom’s power cuts, which have caused an uproar over the past two weeks given the winter period. Ramaphosa said that “generators will also be allowed to transport electricity through the transmission network, subject to transmission costs and connection agreements with Eskom or the relevant municipality.”
Private power producers must be in possession of a grid connection permit to ensure compliance. South Africa’s energy crisis has been attributed in recent years to the widespread looting of the electricity regulator, Eskom, most notably exposed during the State Capture Commission of Inquiry.