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Section 34 Ministerial Determination Under the Spotlight

September 15, 2020

Department of Mineral Resources and Energy

The mineral resources and energy minister, Gwede Mantashe, has welcomed the concurrence by the National Energy Regulator of South Africa to the second Section 34 Ministerial Determination issued in February 2020.

In a statement, the mineral resources and energy department indicated that the Section 34 Determination “enables the Department to undertake procurement of additional electricity capacity in line with the Integrated Resource Plan (IRP 2019)”.

Various Bid Windows (BW) will be opened up including BW5 of renewable energy.

“The capacity determined is 6 800 megawatts (MW) to be generated from renewable energy sources (Photovoltaic and Wind), 513 MW to be generated from storage, 3 000 MW to be generated from gas, and 1 500 MW to be generated from coal.”

As a consequence, an additional 11 813 MW of power will be developed from 2022.

The department pointed out that work has “commenced with key stakeholders including the buyer to firm up on the framework critical for the bankability of the programme”.

Meanwhile, in a statement, the presidency announced that the Political Task Team on Eskom, chaired by deputy president David Mabuza, met on 11 September to “discuss progress in resolving some of the challenges faced by the power utility in providing stable, secure and reliable energy to the country”.

“The meeting noted progress in the procurement of 2 000 MW of emergency power for South Africa as well as in the procurement of additional electricity capacity in line with the Integrated Resource Plan of 2019, also known as also known as the energy mix comprising of coal, nuclear,
solar and wind power.”

Deputy president Mabuza welcomed the developments as contributing towards energy security and a “colossal step towards sustainable economic growth and development”.