President Cyril Ramaphosa of South Africa has declared that the government intends to amend Schedule 2 of the Electricity Regulation Act, which is a critical new step in the restructuring of the country’s electricity industry and attaining a stable and secure energy supply, as he acknowledges the impact power cuts have on the country’s economy.

The amendment is to be published in 60 days. It will allow Independent Power Producers (IPPs) to generate up to 100MW of electricity without a license from the National Energy Regulator of South Africa, NERSA.

“Our ability to address the energy crisis swiftly and comprehensively will determine the pace of our economic recovery. Resolving the energy supply shortfall and reducing the risk of load shedding is our single most important objective in reviving economic growth,” said H.E. Ramaphosa. “This will ensure that we’re able to bring online as much new capacity as possible without compromising the integrity and stability of our energy system.”

“Generation projects will still need to obtain permits, a grid connection permit, to ensure that they meet all the requirements for grid compliance. This will ensure that we are able to bring online as much new capacity as possible without compromising the integrity and stability of our energy system.”  

To keep the lights on, municipalities will be able to generate their power mix and purchase power from IPPs. In addition, the Ministry of Mineral Resources and Energy has made progress in addressing the energy crisis by announcing 11 successful bidders for the Risk Mitigation Power Procurement Program and opening Bid Window 5 of the renewable energy programme, which will source 2,600 MW of new generation capacity from wind and solar PV projects.