In his Opening of Parliament Address recently, President Cyril Ramaphosa announced the Government of National Unity’s (GNU’s) plan on energy as part of the GNU’s priorities in the next five years. He also highlighted the successes of the Energy Action Plan, which was launched in 2022.
The energy plan includes five key pillars, namely fixing Eskom, accelerating private investment in energy, fast-tracking the procurement of new generation capacity, encouraging households to invest in rooftop solar and transforming the electricity sector.
The five pillars highlight the centrality of the Electricity Regulation Amendment (ERA) Bill [B23-2023] in the GNU’s energy plan. The Bill has been passed by Parliament and sent to the President for his signing into law. However, the President is yet to sign it into law.
Once signed into law, the ERA Bill will provide a legislative framework for the implementation of the five pillars of the Energy Action Plan. In its current form as passed by Parliament, the Bill makes provision for the unbundling of Eskom into generation, transmission and distribution entities independent of one another under one holding company. It also makes provision for the participation of private sector in the energy generation space.
President Ramaphosa said that the country has made tremendous progress already in reducing the severity of load shedding since the announcement of the Energy Action Plan in July 2022. His statement comes on the back of Eskom’s marking of a momentous milestone of reaching 100 days without loadshedding on 5 July 2024.
President Ramaphosa added that the country is undergoing a renewable energy revolution that is expected to be the most significant driver of growth and job creation in the next decade and beyond. “Over the next five years, government will focus on expanding and strengthening the transmission network. We will seize the enormous opportunity in renewable energy for inclusive growth,” he said.
The country’s plan to transition into renewable energy will be facilitated through the Just Energy Transition Investment Plan, which sets out a clear path to invest more than R1.5 trillion in the sector, including support for workers and communities in Mpumalanga and other coal-producing regions.
To this effect, President Ramaphosa said: “Work is underway to set up a Special Economic Zone in Boegoebaai to drive investment in green hydrogen energy projects. South Africa has some of the best solar and wind resources in the world.”
He further said that as the country undertakes a just transition towards renewable energy, government must create a green manufacturing sector centred on the export of green hydrogen and associated products, electric vehicles and renewable energy components.
He believes that more investments in the renewable energy space will bring about the creation of much needed jobs.
Meanwhile, President Ramaphosa said that the GNU ought to prioritise beneficiation of minerals to unlock job opportunities. Minister Gwede Mantashe supported this statement during his debate of the OPA. He said that reliable, efficient and affordable energy supply will be central to beneficiation.
His assertion further illustrates the centrality of the ERA Bill in the GNU’s energy plan. Once passed into law, the ERA Bill will make provision for the transformation of the energy sector to provide for reliable, efficient and affordable energy supply.
Justice Molafo
22 July 2024
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