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Regulator eases path to buying private power

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Procurement of emergency power. Picture: Supplied/iStock
Procurement of emergency power. Picture: Supplied/iStock

The national energy regulator has taken a crucial step toward allowing the government to procure emergency power and to allow the building of more privately owned power plants.

The regulator issued public consultation papers after the energy minister allowed the procurement of 2 000 megawatts of emergency capacity as soon as possible and the construction of 6800 megawatts of capacity from longer-term renewable power plants.

The longer-term plan is in line with a government energy framework that includes additional generation capacity in the form of non-renewable power.

South Africa is in urgent need of more electicity to end recurrent outages.

The power utility has struggled to keep the lights on. Although the country has been spared from loadshedding for the past couple of days, Eskom has indicated that it is dipping into emergency reserves, and the next bout of loadshedding is imminent.

As soon as the process is finished by the regulator, procurement of new capacity can begin, Department of Mineral Resources and Energy Deputy Director-General Jacob Mbele said earlier this month.

Although the country has been spared from loadshedding for the past couple of days, Eskom has indicated that it is dipping into emergency reserves, and the next bout of loadshedding is imminent.

The deadline for comment on the framework for the procurement of emergency power is April 14 and the process will be completed in three months.

The deadline for the longer term plants, which encompass a range of technologies from wind to battery storage and coal, will close May 7 and the process will be finalised after about six months, the documents said.

Last week Eskom implemented Stage 4 load shedding after Koeberg Unit 1 tripped. It has since been able to restore generation capacity, but warned that the system remained constrained and vulnerable.

The power utility has put in place measures to keep the power on during the Covid-19 outbreak.

For staff who need to be at work physically, Eskom is in the process of getting the “necessary equipment” to protect staff. This includes protective clothing, sanitisers and other measures for a safe working environment.

It is hoped that the new power generated by independent producers will be plugged into the grid as soon as July. – Bloomberg


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