http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.93Change: 0.00
R/$ = 12.67Change: -0.01
Au 1095.49 $/ozChange: 0.31
Pt 984.00 $/ozChange: 2.00
 
 
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
A “record” $700-million in guarantees has been secured from the World Bank for Ghana’s Sankofa gas project to advance the West African nation’s energy transformation. The World Bank approved a $500-million International Development Association payment guarantee to...
Cabinet ministers are reviewing their decision to grant Eskom the ownership and operational rights of the proposed nuclear build programme, said the energy department's Deputy Director General Zizamele Mbambo. Mbambo, addressing a  seminar on South Africa’s nuclear...
POWER POTENTIAL Central Africa has significant hydropower potential to meet both its local and export requirements
The forecast increase in demand for electrical energy in the sub-Sahara Africa region has prompted heads of States to endorse an investigation of the 15 most promising hydropower projects, worth an estimated $50-billion, says black-owned engineering consulting firm...
More
 
 
Latest News
Embattled South African steel producer ArcelorMittal South Africa (AMSA) has offered insight into the “fair pricing model” it has tabled before government in return for tariff protection and a government stipulation that locally manufactured steel be designated for...
Telecommunications group Telkom on Friday said it had posted a 1.7% uptick in net revenue for the three months to June 30, on the back of a strong performance by mobile on data revenue and higher fixed-line subscription revenue. Mobile net revenue for the first three...
Dangote Cement revised its 2015 spending plans to $1-billion from the $700-million estimated nine months ago after it commissioned two new African plants this June, Nigeria's biggest listed company said on Friday. The company, majority owned by billionaire Aliko...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Electricity 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: Road and Rail 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
Daimler truck test engineer Dirk Stranz pushes one button, and then retracts his hands from the steering wheel of the Mercedes-Benz Future Truck 2025. “And now the truck is driving itself.”
The statutory body responsible for skills development and support in the banking sector, BANKSETA, was investing R68-million in the capacity building project of the University of Venda (UniVen), announced Bankseta company secretary Caroline King at a media event in...
LIONEL MOYAL Cloud services providers must compete against other cloud services providers for business by providing up-to-date systems and services
Legacy information technology (IT) systems are becoming increasingly obsolete because of the maturity, efficiencies and cost effectiveness of cloud-based IT services, says information and communication technology major T-Systems subsidiary Intervate head Lionel...
ARMANDÉ KRUGER Balancing the collection and processing of data must be aligned to strategy
Many complementary services enable companies to derive broad value from data inside and outside them. The complexity of data management means that companies’ strategies determine the various data systems and functions they will use, says PBT Group regional sales...
The South African Civil Aviation Authority (SACAA) has announced that it had awarded the country’s first remotely piloted aircraft systems (RPAS) pilot’s licence. It was issued on Friday, July 10, to SACAA employee and qualified commercial pilot Nicole Swart,...
 
 
 
 
 
 
 
 
 
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