Power Crisis: Is The End In Sight?
Finweek English|25 June 2021
At least two years before the private sector can fill the electricity gap.
Mariam Isa
Power Crisis: Is The End In Sight?

President Cyril Ramaphosa’s unexpected decision to lift the cap on private sector electricity generation has fuelled hope that an end to South Africa’s power crisis is in sight, and that further long-awaited reforms to spur the sluggish economy are imminent.

But even in the best-case scenario, it will be another two years before enough new generation capacity is installed to cover the existing gap between supply and demand, allowing Eskom to end the rolling power cuts, which it has been forced to implement to protect the national grid.

Eskom spokesperson Sikonathi Mantshantsha was blunt about this in interviews following the 10 June announcement of Ramaphosa’s decision, saying that load-shedding would not be eliminated until the country had an additional 4 000MW of additional generation capacity.

But there are implementation risks to Ramaphosa’s bold decision to intervene on energy policy reform, posed both by bureaucratic red tape and outright opposition. This could delay the ability of private companies to forge ahead with plans to ensure that their electricity supply is stable.

The National Energy Regulator of SA (Nersa) has been notoriously slow in granting licenses for private electricity generation above the previous 1MW cap, which has now been raised to 100MW — twice as high as the level the business community had been campaigning for.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM FINWEEK ENGLISHView all
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021