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Ramaphosa Shines Light on Electricity Sector

June 13, 2022

The Presidency

South Africa is on the cusp of a fundamental transformation in the electricity sector.

President Ramaphosa declared this during the 2022 Presidency Budget Vote Speech in parliament.

The president added that the sector is undergoing the most significant reform process in the country’s history.

“Once these changes are implemented, we will have multiple generators competing to supply electricity at the lowest cost and selling power directly to customers”, he said.

The president pointed out that new public and private sector investment in generation capacity at a massive scale will be unleashed.

Government is focused on getting as much new generation capacity onto the grid as quickly as possible.

The president confirmed that the current electricity shortfall stands at around 6,000 MW.

Extra measures will soon be introduced to bring new capacity online.

Measures to close the electricity gap include:

  • Improve the performance of existing power stations and ensure that additional units at Medupi and Kusile come online according to schedule;
  • Ensure that projects from existing procurement programmes, including Bid Window 5, are able to reach close and connect to the grid as quickly as possible;
  • Speed up private sector investment in generation capacity under 100 MW;
  • Enable Eskom to purchase surplus power from existing power producers;
  • Support municipalities to procure power independently; and
  • Encourage households and businesses to invest in small-scale solar power installations and feed energy to the grid.

As regards the Commission of Inquiry into Allegations of State Capture, the president also confirmed that an implementation plan on the recommendations of the Commission will be delivered to parliament four months after receipt of the final report.

“Work has begun on the large number of recommendations made in the parts of the report received to date”, he said.

During his Budget Vote Speech, the deputy president, David Mabuza, pointed out that considerable progress is being made in the implementation of the recommendations of the Advisory Panel on Land Reform and Agriculture to address land injustice.

Legislative and policy interventions include:

  • The Land Allocation and Beneficiary Selection Policy;
  • The Comprehensive Producer Support Policy;
  • The Land Donations Policy;
  • The Upgrading of Land Tenure Rights Amendment Bill of 2020 (assented to in 2021); and
  • The Expropriation Bill.

The deputy president added that government plans to release land parcels in the hands of State-Owned Companies and Municipalities for integrated human settlements and socio-economic development.