http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.10
R/$ = 10.60Change: -0.09
Au 1300.25 $/ozChange: -2.27
Pt 1480.50 $/ozChange: -8.00
 
 
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 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|Energy|Paper|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|Paper|System|Systems|Africa||Energy|Power Generation|Power-generation|Systems|Power
johannesburg|africa-company|energy-company|paper-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
 
 
 
 
 
 
 
 
Other Electricity News
The Medupi power station project
Updated 3 hours ago Electricity producer Eskom has, for the first time, offered a detailed timeline for the synchronisation of Medupi Unit 6, which is officially scheduled for December 15, 2014. Addressing a joint meeting of the Portfolio Committees on Public Enterprises and Energy on...
Updated 4 hours ago State-owned electricity producer Eskom reported on Tuesday that a five-point recovery plan was being introduced in a bid to place its underperforming power station fleet on a “sustainable path”. However, Eskom cautioned that an additional 7 400 MW of capacity...
Public Enterprises Minister Lynne Brown
Updated 7 hours ago Public Enterprises Minister Lynne Brown told the Joint Parliamentary Committee on Energy and Public Enterprises on Tuesday that the new Eskom CEO would be appointed within weeks. She said she was “treating the appointment of a permanent CEO with urgency”.
More
 
 
Latest News
The Medupi power station project
Updated 3 hours ago Electricity producer Eskom has, for the first time, offered a detailed timeline for the synchronisation of Medupi Unit 6, which is officially scheduled for December 15, 2014. Addressing a joint meeting of the Portfolio Committees on Public Enterprises and Energy on...
Updated 3 hours ago As South Africa had largely exhausted the use of traditional mechanisms to stimulate the fiscus, government now needed to swing its focus to dealing with the internal structural issues that had, thus far, prevented the country from unlocking its true economic value,...
Updated 3 hours ago The Western Cape High Court will on Monday hear a Sanral application for information about the proposed N1/N2 Winelands Toll Highway Project to be kept secret, the City of Cape Town said. The application would be heard behind closed doors, mayoral committee member...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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