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New Electricity Generation Capacity in the Pipeline

July 8, 2020

Department of Mineral Resources and Energy

The mineral resources and energy minister, Gwede Mantashe, has determined that 2000 megawatts of new generation capacity should be procured from a range of energy source technologies to contribute towards energy security.

The mineral resources and energy department published the Determination under Section 34(1) of the Electricity Regulation Act in Government Gazette 43509.

The notice adds that the procurement, from independent power producers, must be in accordance with the short-term risk mitigation capacity allocated under the heading “Others “, for the years 2019 to 2022, in Table 5 of the Integrated Resource Plan for Electricity 2019-2030.

“The procurement programme shall target connection to the Grid for the new generation capacity as soon as reasonably possible but by no later than December 2021.”

The electricity produced from the new generation capacity can only be sold to Eskom.

The department is tasked with conducting the “procurement programmes, including preparing any requests for proposals and/or related and associated documentation, negotiating the power purchase agreements, facilitating the conclusion of the other projects agreements, and facilitating the satisfaction of any conditions precedent to financial close which are within its control”.

Meanwhile, in a statement, the minister welcomed the “order handed down by the Gauteng High Court in which the Minerals Council of South Africa (MCSA) is ordered to join parties representing communities, trade unions and BEE entrepreneurs in its judicial review of the 2018 Mining Charter proceedings”.

The minister declared that the order is a positive development for transformation in the mining sector.

“Decisions cannot be taken to the exclusion of workers, mining communities, BEE entrepreneurs. These parties were central to the drafting of the Mining Charter, thus the order affirms their inclusion at all material times.”