http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.12Change: -0.21
R/$ = 13.46Change: -0.18
Au 1134.81 $/ozChange: -6.24
Pt 1015.00 $/ozChange: 7.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 19, 2012

SA needs competition in electricity generation, transmission

Back
Johannesburg|Africa|System|Systems|Africa|South Africa|Electricity|Electricity Crisis|Electricity Generation|Electricity Status Quo|Energy|Energy Crisis|Gross Domestic Product|Power Generation|Power-generation|Product|Systems|Doug Kuni|Leon Louw|Power
|Africa|System|Systems|Africa||Energy|Power Generation|Power-generation|Systems|Power
johannesburg|africa-company|system|systems-company|africa|south-africa|electricity|electricity-crisis|electricity-generation|electricity-status-quo|energy|energy-crisis|gross-domestic-product|power-generation|power-generation-industry-term|product|systems|doug-kuni|leon-louw|power
© Reuse this



South Africa needs competition and private investment in electricity generation, transmission and distribution to ensure the continuity of affordable supply, Free Market Foundation executive director Leon Louw said on Thursday.

South Africa needed an independently owned and operated transmission grid, independent power producers (IPPs) and market trade in electricity.

He said at a media briefing in Johannesburg that the government’s New Growth Path would not be possible under the current electricity status quo. “We are losing a potential 3.3% to 3.5% gross domestic product as a result.”

South Africa’s Independent Power Producers Association (SAIPPA) MD Doug Kuni said South Africa was facing an electricity crisis, which if left unresolved, would cost the economy billions of rands, government in growing the economy and creating jobs.

“Electricity is now being taken out of the productive sector in this country, and taken out of the economy. The smelters are being shut down, or encouraged to shut down,” he said.

Kuni also noted that economic drivers such as mines, manufacturers and property developers had to rein in potential developments and expansion as a result of the energy crisis.

Citing the National Treasury and the Department of Trade and Industry, he said that for every unserved kilowatt hour (kWh), the country was losing R75/kWh. “We are short of 5 000 MW of energy in the country at the moment, and this amount, not served as energy and its value to the economy, equates to R3.3-trillion a year. This is an astronomical figure,” he noted.

Kuni said electricity policy, legislation and regulations had to work in concert to achieve desired outcomes, which included the immediate generation of electricity. He lamented that, where legal interpretations offered different applications, the outcome was confusion and uncertainty, which discouraged IPPs from investing in additional power capacity.

He stated that the amended Electricity Regulation Act did not encourage companies to be independent power producers in South Africa, while the Independent System and Market Operator bill did not deliver an independent systems management operator.

“The white paper policy document of 1998 and the electricity master plan of 2007 explicitly state that competition is a policy in the country, and so is customer choice of electricity. The amended act now excludes a willing buyer/seller and it does it surreptitiously, while wheeling is not even mentioned. The licensing requirements from private or own-use power generation are now subject to Ministerial approval and there are no prescripts for how Ministerial approval is actually made.”
 

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Deputy President Cyril Ramaphosa
Updated 3 hours ago Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Updated 5 hours ago Next year’s local government elections will be the most important ever held in South Africa’s recent democratic history, believes political analyst Daniel Silke. He says a more vulnerable, fragile ANC faces a shifting political landscape, and along with it, increased...
Article contains comments
South Africa was firmly committed to adding to its nuclear energy capacity but would only sign an agreement with another country as a supplier if it was affordable and in line with local procurement rules, Energy Minister Tina Joemat-Pettersson told MPs on Tuesday....
Article contains comments
More
 
 
Latest News
Deputy President Cyril Ramaphosa
Updated 3 hours ago Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Frost & Sullivan ICT programme manager Gareth Mellon
Updated 3 hours ago It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
Updated 4 hours ago International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96