President Cyril Ramaphosa has reiterated government’s commitment to resolving the energy crisis as soon as possible.<\/P>
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The President was addressing the National Assembly on Wednesday during the occasion of The Presidency\u2019s Budget Vote.<\/P>
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\u201cOur overriding priority now is to end load shedding and to achieve energy security. In July last year, I announced a detailed plan to address the energy crisis. I have since established the National Energy Crisis Committee to ensure that this plan is fully implemented and appointed a dedicated a Minister in The Presidency to provide a single point of execution.<\/P>
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“Over the past nine months, we have made progress in implementing the measures that we outlined in the Energy Action Plan,\u201d he said.<\/P>
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Reforming electricity generation<\/P>
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Zeroing in on the progress made, President Ramaphosa said government\u2019s move to reform private electricity generation has paved the way for an exponential growth of new generation projects.<\/P>
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\u201cMore than 100 projects are now at various stages of development, representing over 10 000MW of new generation capacity, with an investment of over R200 billion. The exponential growth of private sector investment in electricity generation is proof that this reform is indeed having a major impact.<\/P>
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\u201cThese investments will significantly close the shortfall in electricity supply as we move on. What has been pleasing\u2026 is that this reform process has attracted a variety of investors in the form of women-led businesses.<\/P>
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\u201cA province such as the Northern Cape has attracted no less than R100 billion in investments\u2026 in renewable energy and is seeing exponential economic growth, with the resultant creation of jobs,\u201d the President said.<\/P>
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Accelerating new generation capacity and assisting municipalities<\/P>
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President Ramaphosa said government\u2019s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) \u2013 which was created to address the current energy shortfall and reduce the dependence of diesel guzzling Open Cycle Gas Turbines \u2013 is also bearing fruit.<\/P>
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\u201cThree projects from the Risk Mitigation Programme have entered construction, with a further five projects expected to reach financial close during this quarter. Project agreements have been signed with 25 preferred bidders from Bid Window 5 and Bid Window 6.<\/P>
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\u201cIn the coming months, we will initiate the procurement of more than 10 000MW of additional generation capacity from wind, solar, gas and battery storage, which will further contribute to closing the shortfall in energy supply,\u201d he said.<\/P>
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Unbundling the State power utility<\/P>
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The President said the unbundling of Eskom into three entities is well underway and assured that many countries have implemented such a move with some success.<\/P>
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\u201cSignificant progress has been made in the establishment of the National Transmission Company of South Africa as an independent subsidiary of Eskom. I\u2019ve asked the Minister of Public Enterprises to ensure that an independent board is appointed for the new transmission company by the end of June so that it can be fully operational as soon as possible.<\/P>
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\u201cAt the same time, we are making progress in decisively addressing Eskom\u2019s debt burden. The\u2026 budget introduced R254 billion in debt relief to Eskom, subject to conditions. This will relieve pressure on the utility\u2019s balance sheet, enabling it to conduct necessary maintenance and supporting the restructuring of the electricity market,\u201d he said.<\/P>
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Legislative reform<\/P>
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President Ramaphosa said government is pursuing \u201csweeping legislative reforms\u201d, which will \u201cend the energy crisis once and for all\u201d.<\/P>
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\u201cWe have already introduced the Electricity Amendment Bill, which seeks to establish a competitive electricity market and support the unbundling of Eskom. This will fundamentally transform the electricity sector as we know it\u2026 and will create a level playing field for multiple generators to participate in producing the energy that we need.<\/P>
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\u201cWe will soon introduce another key piece of legislation, the Energy Security Bill, to streamline the regulatory framework and accelerate the construction of renewable energy projects. I call on the Members of this House, from all political parties, to pass this critical legislation in record time, while adhering to required Parliamentary processes. We need to do so in months, not years,\u201d he said.<\/P>
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Load shedding<\/P>
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Turning to the current challenge of load shedding, President Ramaphosa appealed to South Africans to do their part, with \u201ca difficult winter ahead\u201d with demand set to rise.<\/P>
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\u201cWe can all make a difference by switching off lights and appliances when not in use, reducing the temperature by setting geysers to 60 degrees, installing a geyser blanket or geyser timer to save energy and reduce your electricity bill, and turn off unnecessary equipment like pool pumps. By taking these simple actions we can reduce demand by up to 1 000 MW, or one full stage of load shedding,\u201d he said. \u2013 SAnews.gov.za<\/P>
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Source: South African Government News Agency<\/P>
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