http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.48Change: 0.08
R/$ = 11.46Change: 0.05
Au 1228.13 $/ozChange: -10.36
Pt 1231.50 $/ozChange: -11.50
 
 
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 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Updated 3 hours ago Temporary power generation services provider Aggreko has extended the contract for its 200 MW gas-fired power project in Côte d'Ivoire by three years, with the option to extend this by a further two years.
A debate over the impact on the industry of the local content regulations governing solar water heaters (SWHs) has heated up as the Department of Trade and Industry (DTI) and industry body, the Sustainable Energy Society Southern Africa (Sessa) stand firm on their...
State-owned power utility Eskom on Monday urged consumers to save electricity as it implemented load shedding, owing to unforeseen technical problems at some of its power stations. The utility on Monday morning announced that it would start stage one load shedding,...
Article contains comments
Article contains comments
More
 
 
Latest News
Updated 3 hours ago Temporary power generation services provider Aggreko has extended the contract for its 200 MW gas-fired power project in Côte d'Ivoire by three years, with the option to extend this by a further two years.
Updated 4 hours ago A Competition Tribunal hearing into alleged cartel activity and price-fixing by several companies in the wire and wire products manufacturing industry was again postponed on Monday pending a decision by the Competition Appeal Court (CAC). Respondents Allens Meshco,...
Updated 4 hours ago The share price of cement producer PPC fell by as much as 8.6% on Monday on the news that it expects its headline earnings per share (HEPS) for the six months to end March 31, to be as much as 45% lower than in the comparable period the year before. The company,...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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