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Regulation News

Gumede appointed regulator member at Nersa

By: Marleny Arnoldi     2nd April 2020 Mineral Resources and Energy Minister Gwede Mantashe has appointed Nhlanhla Gumede as a full-time regulator member of the National Energy Regulator of South Africa (Nersa). Gumede will primarily be responsible for electricity regulation for five years, effective April 1.  

Taxis allowed 100% of capacity only with masks – Mbalula  

By: Sane Dhlamini     1st April 2020 Transport Minister Fikile Mbalula announced on Wednesday that taxis could carry their full loads during the national lockdown, provided that all passengers wore masks. Mbalula was addressing taxi operators and commuters at the MTN Taxi Rank in Johannesburg after he held discussions with the... 

Taxis allowed 100% of capacity only with masks – Mbalula
Transport Minister Fikille Mbalula

Mantashe sustains 1 MW licence-exemption cap despite calls for higher threshold 

By: Terence Creamer     27th March 2020 Mineral Resources and Energy Minister Gwede Mantashe Gazetted an amended version of Schedule 2 of the Electricity Regulation Act on March 26, which the Department of Mineral Resources and Energy (DMRE) said further clarified the requirements for generation for own use for facilities of under 1... 

Mantashe sustains 1 MW licence-exemption cap despite calls for higher threshold
Photo by Creamer Media's Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

KZN MEC says dept has adopted zero tolerance on price hiking amid lockdown

By: Sane Dhlamini     27th March 2020 KwaZulu-Natal economic development, tourism and environmental affairs MEC Nomusa Dube-Ncube says her department  is in communication with the management of Spar KZN with the view of terminating contracts of franchise owners who are involved in price hiking. This follows consumer complaints that... 

KZN MEC says dept has adopted zero tolerance on price hiking amid lockdown
KZN MEC for EDTEA Nomusa Dube-Ncube

Industry reaction to Minister’s call for higher levels of clean-coal investment

By: Mamaili Mamaila     27th March 2020 There is much scepticism domestically and internationally about the potential for clean-coal technology (CCT). In South Africa, however, there has been an amplification in recent months of calls for accelerated efforts to be made to finding innovative solutions to the serious environmental and... 

Industry reaction to Minister’s call for higher levels  of clean-coal investment
Photo by GE
POWER PLANT OPTIMISATION Eskom’s Kusile power station’s use of the wet flue gas desulphurisation technology ensures lower emissions

Lawyers question whether Nersa’s concurrence timeline truly reflects power-shortfall urgency 

By: Terence Creamer     24th March 2020 Project finance and energy specialists from a leading domestic law firm have questioned whether the timetable outlined by the National Energy Regulator of South Africa (Nersa) for providing its concurrence with two Ministerial determinations for new power generation “truly reflects the urgency of... 

Lawyers question whether Nersa’s concurrence timeline truly reflects power-shortfall urgency

IEA urges governments to integrate clean-energy transition into Covid-19 stimulus packages 

By: Terence Creamer     23rd March 2020 The stimulus plans being developed by governments to counter the economic damage of the Covid-19 pandemic “offer an excellent opportunity to ensure that the essential task of building a secure and sustainable energy future doesn’t get lost amid the flurry of immediate priorities”, International... 

IEA urges governments to integrate clean-energy transition into Covid-19 stimulus packages

Privatisation slowly becoming reality

By: Tracy Hancock     20th March 2020 The type of participants attending this year’s Power & Electricity World Africa & The Solar Show are proof that Africa seeks to become less reliant on governments for its electricity supply, says event organiser Terrapinn Power & Electricity World Africa conference producer Caroline Mubima.... 

Privatisation slowly becoming reality
DRIVEN DISCUSSION The growing adoption of electric vehicles is one trend expected to dominate discussion at Power & Electricity World Africa 2020

Africa can develop on low-carbon growth path

By: Tracy Hancock     20th March 2020 Choosing between a low-carbon future and Africa’s economic growth is a false dichotomy, as these goals do not need to be in competition, says independent power producer Pele Energy Group founder Fumani Mthembi, a speaker at this year’s Power & Electricity World Africa. “The global investment... 

Africa can develop on low-carbon growth path
SUNNY DISPOSITION The global investment sector is increasingly more interested in funding renewable-energy projects, such as solar farms, as opposed to coal projects

Nersa finally initiates public process for concurring with Mantashe’s power determinations  

By: Terence Creamer     18th March 2020 The National Energy Regulator of South Africa (Nersa) published two consultation papers on Wednesday for two separate Ministerial determinations submitted by Mineral Resources and Energy Minister Gwede Mantashe for the regulator’s concurrence as required by the National Energy Regulator Act. By... 

Nersa finally initiates public process for concurring with Mantashe’s power determinations

No immediate power tariff impact, but first court ruling portends material future hikes 

By: Terence Creamer     13th March 2020 The Eskom tariff increase for 2020/21 tabled before lawmakers this week provides no scope for any further hikes this year beyond those already sanctioned for April 1 by the National Energy Regulator of South Africa (Nersa) in previous price determinations and regulatory clearing account (RCA)... 

No immediate power tariff impact, but first court ruling portends material future hikes

Bank forecasting ‘exponential growth’ for South Africa’s small-scale power market 

By: Terence Creamer     11th March 2020 A leading South African bank is forecasting “exponential growth” for the country’s small-scale embedded generation (SSEG) market in the coming few years, having already committed to funding project pipelines worth more than R1-billion,  mostly in the form of rooftop solar. Nedbank CIB energy... 

Bank forecasting ‘exponential growth’ for South Africa’s small-scale power market
Nedbank CIB energy finance principal Duncan Abel

South African court sides with Eskom in 2018/19 tariff dispute 

By: Reuters     10th March 2020 A South African court on Tuesday sided with State power utility Eskom in a dispute with energy regulator Nersa over electricity tariffs in the 2018/19 financial year. The court "set aside" Nersa's tariff decision and granted Eskom leave to apply to Nersa for additional expenses it incurred in... 

Opinion: Government can and should expedite the procurement of emergency power

10th March 2020 In this opinion article, Megan Adderley and Melissa Hendrickse of Webber Wentzel argue that, to enable a swift response to closing South Africa’s existing electricity supply deficit of 3 000 MW, it may be legally permissible and necessary for the National Energy Regulator of South Africa to... 

Opinion: Government can and should expedite the procurement of emergency power

Lessons from Brazil and India as South Africa gets set to resume renewables auctions  

By: Terence Creamer     10th March 2020 Auctions have proved extremely successful for driving down the cost of wind and solar photovoltaic (PV) tariffs in both Brazil and India in recent years and are, thus, set to remain the main instrument for introducing yet more variable renewable-energy capacity. Nevertheless, specialists from... 

Lessons from Brazil and India as South Africa gets set to resume renewables auctions
Photo by Bloomberg
A wind farm operating in Brazil

Opinion: South African steel industry is an industry in distress

6th March 2020 In this opinion piece, South African Iron and Steel Institute secretary-general Charles Dednam outlines the difficulties being faced by the domestic steel industry and calls for the creation a ‘level playing field’ to enable the steel industry to contribute more fully in stimulating value-added... 

Opinion: South African steel industry is an industry in distress
South African Iron and Steel Institute secretary-general Charles Dednam

Nersa aiming to grant concurrence on Ministerial determinations within three months 

By: Terence Creamer     5th March 2020 The National Energy Regulator of South Africa will release a consultation paper, possibly next week, which will formally initiate the public-participation process required to secure the regulator’s concurrence on two Section 34 Ministerial determinations that have been drafted by Mineral... 

Nersa aiming to grant concurrence on Ministerial determinations within three months

IRP to be reviewed frequently, says DMRE

By: Kim Cloete     3rd March 2020 The Department of Mineral Resources and Energy (DMRE) says it has started with its work to implement the Integrated Resources Plan (IRP) 2019 from a policy and regulatory point of view. A Section 34 determination is needed to operationalise the IRP 2019, which supports a diverse energy mix. 

IRP to be reviewed frequently, says DMRE

Cosatu’s plan on Eskom is immoral – Cape Chamber of Commerce

By: Sane Dhlamini     24th February 2020 The Cape Chamber of Commerce and Industry labelled the Congress of South African Trade Unions’ plan to save ailing power utility Eskom using Government Employees Pension Fund funds as immoral. Cosatu recently suggested saving Eskom by using R250-billion from the Public Investment Corporation,... 

Cosatu’s plan on Eskom is immoral – Cape Chamber of Commerce
Photo by Supplied by Cape Chamber
President of the Cape Chamber of Commerce and Industry, Geoff Jacobs

As South Africa prepares to resume renewables procurement, new global report points to rising popularity of auctions 

By: Terence Creamer     21st February 2020 As South Africa prepares to restart its electricity procurement programmes, following a five-year hiatus, the global popularity of competitive auctions as the preferred instrument for procuring renewable energy has again been highlighted in a newly released report. Published by the International... 

As South Africa prepares to resume renewables procurement, new global report points to rising popularity of auctions

Eskom’s survival cannot be based on continuing tariff increases, says Minerals Council

By: Marleny Arnoldi     21st February 2020 The Minerals Council South Africa has reiterated the significant job losses that may result from power utility Eskom being granted the additional R27.3-billion in revenue it is seeking. In a media release issued ahead of a submission at public consultations held by the National Energy Regulator... 

Eskom’s survival cannot be based on continuing tariff increases, says Minerals Council
Photo by Creamer Media
Minerals Council South Africa chief economist Henk Langenhoven

Electricity sector developments 

21st February 2020 Creamer Media’s Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about the latest developments in South Africa’s electricity sector, with Mineral Resources and Energy Minister Gwede Mantashe having announced this week that the Section 34 Ministerial Determinations required to... 

Electricity sector developments
Electricity sector developments

New energy paradigm can drive Africa’s development

By: Schalk Burger     21st February 2020 Africa can meet its major sustainable energy and development goals without becoming more energy intensive, as it has a unique opportunity to use renewable energy, natural gas and energy efficiency to meet its development needs and provide reliable and modern energy services. This is the... 

New energy paradigm can drive Africa’s development

Energy institute to focus on IRP at Indaba

By: Cameron Mackay     21st February 2020 The publication of the long-awaited Integrated Resource Plan (IRP) in October last year will be a significant focus area for State-owned energy researcher the South African National Energy Development Institute (Sanedi) at this year’s Africa Energy Indaba. “The publication of the IRP provides... 

Energy institute to focus on IRP at Indaba
BARRY BREDENKAMP We certainly don’t have to re-invent the wheel, there are many African countries doing exceptional work in this area, and we can learn from them

Indaba increases prospect of project funding

By: Cameron Mackay     21st February 2020 The Africa Energy Indaba provides an ideal opportunity for State-owned export credit agency (ECA) the Export Credit Insurance Corporation of South Africa (ECIC) to become more involved in the funding of significant energy infrastructure projects. “The Indaba raises the ECIC’s profile as an... 

Indaba increases prospect of project funding
ATTRACTING THE GLOBE The ECIC’s mandate from government is to make local exports attractive to international buyers to attract foreign income, stimulate local economic growth and create jobs

Eskom CEO says it wants hand in negotiating IPP pricing 

By: African News Agency      18th February 2020 Eskom wants to play a role in negotiating the price at which new and existing independent power producers sell electricity to the embattled utility, CEO Andre de Ruyter told MPs on Tuesday, "It is very important that [with] the roll-out of the new IPP programme that Eskom, as the ultimate buyer... 

 Eskom CEO says it wants hand in negotiating IPP pricing
Photo by Donna Slater
Eskom CEO Andre de Ruyter

Renewables bodies call for clear timelines after Ramaphosa commits to restarting IPP procurement

By: Terence Creamer     14th February 2020 South Africa’s wind and solar industry bodies have welcomed President Cyril Ramaphosa’s commitment, made in his 2020 State of the Nation Address (SoNA), to restarting the long-delayed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). However, they have also called on... 

Renewables bodies call for clear timelines after Ramaphosa commits to restarting IPP procurement
South African Wind Energy Association CEO Ntombifuthi Ntuli

GE’s gas power unit makes emergency-power submissions to DMRE 

By: Terence Creamer     13th February 2020 The newly created gas power unit of General Electric (GE) has confirmed that it has made both direct and indirect submissions to the Department of Mineral Resources and Energy (DMRE) in response to a request for information (RFI) issued in December for 3 000 MW of emergency electricity solutions... 

GE’s gas power unit makes emergency-power submissions to DMRE
An example of a GE trailer-mounted mobile gas-powered solution than can be deployed as an emergency solution

Business urges Ramaphosa to use SoNA to clear way for private energy generation ‘at scale’ 

By: Terence Creamer     11th February 2020 Organised business has urged President Cyril Ramaphosa to use his upcoming State of the Nation Address (SoNa) to announce that the regulations needed to enable “private sector energy generation at scale” will be put in place urgently by Mineral Resources and Energy Minister Gwede Mantashe so as... 

Business urges Ramaphosa to use SoNA to clear way for private energy generation ‘at scale’
President Cyril Ramaphosa will deliver his State of the Nation Address on Thursday evening

South Africa should brace for ‘toughest budget since 1994’, says PwC 

By: Simone Liedtke     11th February 2020 As the 2020 National Budget approaches, consumers should expect to tighten their belts further, particularly with continued fiscal drag set to blot the horizon amid a continuing economic slowdown, says multinational advisory firm PwC. Speaking at a pre-budget review on Tuesday, PwC lamented that... 

South Africa should brace for ‘toughest budget since 1994’, says PwC
Finance Minister Tito Mboweni

Eskom loses R69bn urgent-relief battle, but war continues   

By: Terence Creamer     10th February 2020 Judge Jody Kollapen on Monday turned down Eskom’s application for urgent relief in relation to the National Energy Regulator of South Africa’s controversial treatment, in its most recent tariff determination, of the R69-billion in government support announced in the 2019 Budget. Kollapen said the... 

Eskom loses R69bn urgent-relief battle, but war continues
CLICK ABOVE TO LISTEN: Engineering News Editor Terence Creamer speaks to CapeTalk's Refilwe Moloto about the legal showdown between Eskom and Nersa. Recorded: 11.02.2020

AMSA says regulatory changes could open way for 100 MW Vanderbijl solar farm 

By: Terence Creamer     6th February 2020 Steel producer ArcelorMittal South Africa (AMSA) believes there is potential to develop a 75 MW to 100 MW solar photovoltaic (PV) power plant adjacent to its Vanderbijlpark mill, in Gauteng. The JSE-listed company is also convinced that such a project could proceed relatively quickly should South... 

AMSA says regulatory changes could open way for 100 MW Vanderbijl solar farm
Photo by Creamer Media's Donna Slater
AMSA CEO Kobus Verster

SA’s electricity situation 

5th February 2020 Creamer Media’s Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about power utility Eskom’s maintenance plans and how this is likely to affect load-shedding for the next 18 months, Eskom’s application to Nersa to recover R27-billion in additional funding from consumers and... 

SA’s electricity situation
SA’s electricity situation

Opinion: Can mining companies currently generate own power without licenses? 

4th February 2020 In this article, Webber Wentzel partners Jason van der Poel, Mzukisi Kota and Alexandra Felekis outline when it is, and when it is not, permissible for mining firms to proceed to produce their own power without a license. 

Opinion: Can mining companies currently generate own power without licenses?
Mineral Resources and Energy minister Gwede Mantashe said this week that, Depending on the circumstances, self-generation plant may only require registration and not licensing

Eskom warns of upcoming daytime power cuts to municipality

By: News24Wire      4th February 2020 Eskom has warned that it will disconnect power to customers in the Northern Cape's Khâi-Ma Local Municipality next week due to a breach of payment conditions. The municipality includes the town of Pofadder. 

Eskom warns of upcoming daytime power cuts to municipality

Eskom defends request for R27bn tariff increase from regulator 

By: African News Agency      4th February 2020 South Africa's cash-strapped power utility Eskom has defended its request for an additional R27-billion in tariffs, saying it needs to recover prudently-incurred costs for the 2018/2019 financial year. Last year Eskom said Nersa's decision to award the utility lower tariff increases than it had... 

Eskom defends request for R27bn tariff increase from regulator

Eskom and Nersa resume normal hostilities as RCA hearings begin 

By: Terence Creamer     3rd February 2020 Outside of the courts, Eskom and the National Energy Regulator of South Africa (Nersa) have resumed normal hostilities on their more customary playing field of public hearings, with initial oral representations heard on Monday into the State-owned utility’s latest Regulatory Clearing Account... 

Eskom and Nersa resume normal hostilities as RCA hearings begin
Photo by Creamer Media
Nersa kicked off public hearings into Eskom's RCA applicaiton for 2019 in Cape Town on Monday
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