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Regulation News

FMF calls for accelerated gazetting of 100 MW distributed generation licensing-exemption threshold

By: Donna Slater     23rd July 2021 Independent nonprofit public benefit organisation the Free Market Foundation (FMF) is calling on government to accelerate the process of detailing and Gazetting President Cyril Ramaphosa’s June announcement about raising the threshold for companies to produce their own electricity without a... 

eThekwini issues RFI as it gears up to procure 400 MW of IPP power 

By: Terence Creamer     22nd July 2021 The eThekwini municipality, which has been badly affected by recent deadly rioting and looting, is pushing ahead with its electricity procurement plans and has issued a request for information (RFI) as part of preparations for the procurement of 400 MW of new generation capacity from independent... 

Image of the Durban skyline in the eThekwini municipality
The Durban skyline in the eThekwini municipality

Western Cape making progress on pioneering municipal power projects 

By: Terence Creamer     21st July 2021 The Western Cape provincial government is currently evaluating responses to a request for information (RFI) issued by the Department of Economic Development and Tourism to assess the potential for renewable-energy projects in six municipalities included as part of its Municipal Energy Resilience... 

Image of solar rooftops with a Cape mountain in the background

Despite tailwinds, South Africa’s recovery could fade into ‘another lost decade’ without reforms 

By: Terence Creamer     12th July 2021 The World Bank expects South Africa to grow by 4% in 2021, supported by the strong global economic recovery from Covid and favourable commodity prices. However, the bank also warns that the medium-term outlook remains uncertain and will depend largely on whether the country is able to implement... 

Image of large mining vehicles at an iron-ore mine
Commodity prices supporting South Africa rebound

Another hurdle in embedded generation licensing exemption saga  

9th July 2021 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about Mineral Resources and Energy Minister Gwede Mantashe's latest update on amendments to be made to Schedule 2 of the Electricity Regulation Act to lift the licensing-exemption threshold for embedded generation... 

Image of Terence Creamer
Another hurdle in embedded generation licensing exemption saga

Mantashe 'grapples' with difference between a permit and licence as 100-MW reform drafting nears completion  

By: Terence Creamer     7th July 2021 Mineral Resource and Energy Minister Gwede Mantashe says that a revised amendment to Schedule 2 of the Electricity Regulation Act, reflecting an increase in the licence-exemption cap from 1 MW to 100 MW, will be finalised within the coming week and will be shared with The Presidency “so that we... 

Photograph of Mineral Resource and Energy Minister Gwede Mantashe
Mineral Resource and Energy Minister Gwede Mantashe

100 MW reform ‘precursor’ to new market-driven electricity supply industry – De Ruyter 

By: Terence Creamer     18th June 2021 Eskom CEO Andre de Ruyter has described the decision to lift the licence-exemption cap on own- or embedded-generation plants from 1 MW to 100 MW as not only positive for addressing South Africa’s immediate electricity shortages, but also as “the precursor to the development of a new electricity... 

Eskom CEO Andre de Ruyter
Photo by Creamer Media's Donna Slater
Eskom CEO Andre de Ruyter

South Africa will continue to remove barriers to growth and investment, Ramaphosa tells investors 

By: Terence Creamer     17th June 2021 Having already announced a key reform for the electricity sector, President Cyril Ramaphosa told international investors on Thursday that the country will continue to remove barriers to growth and investment through the Operation Vulindlela delivery mechanism. In an address to the SA Tomorrow... 

President Cyril Ramaphosa
President Cyril Ramaphosa

Emergency power fiasco compounds South Africa’s energy crisis

By: Bloomberg     17th June 2021 The debacle surrounding South Africa’s bid to secure emergency power supplies has highlighted a dysfunctional energy policy that’s subjecting Africa’s most-industrialized nation to intermittent blackouts. Since March, the energy department has identified companies it wants to provide almost 2 000... 

South Africa on its way to decentralised power system – SAWEA

By: Simone Liedtke     11th June 2021 The South African Wind Energy Association (SAWEA) has welcomed President Cyril Ramaphosa’s announcement that the licensing-exemption threshold for companies to produce their own electricity will be increased from 1 MW to 100 MW. SAWEA says it views this as another indication the country is well... 

Nersa welcomes 100 MW embedded-generation licensing-exemption decision

By: Simone Liedtke     11th June 2021 The National Energy Regulator of South Africa (Nersa) has welcomed the announcement by President Cyril Ramaphosa that Schedule 2 of the Electricity Regulation Act will be amended. The President on June 10 announced that embedded-generation facilities of up to 100 MW would be exempt from licensing... 

Ramaphosa moves to tackle growth-sapping electricity crisis by increasing licence-exemption cap on distributed projects to 100 MW  

By: Terence Creamer     10th June 2021 In a surprise move, President Cyril Ramaphosa announced on Thursday that the licence-exemption cap on self- or distributed-generation plants would be raised from 1 MW to 100 MW to help address the country's electricity crisis, which has been weighing down economic growth and confidence for more... 

President Cyril Ramaphosa
President Cyril Ramaphosa

SAHPRA registers Janssen Covid-19 vaccine with conditions

By: Sane Dhlamini     7th June 2021 The South African Health Products Regulatory Authority (SAHPRA) announced on Monday the registration of the Janssen Covid-19 vaccine on March 31, with conditions. SAHPRA CEO Dr Boitumelo Semete-Makokotlela explained that one of the conditions is that the vaccine be manufactured under conditions... 

SAHPRA registers Janssen Covid-19 vaccine with conditions

Macsteel seeks reimbursement for ‘unlawful’ duty payments 

By: Terence Creamer     3rd June 2021 Macsteel CEO Mike Benfield is confident that the company has a strong legal case against the continued application of an 8% safeguard duty on hot-rolled coil (HRC) and confirms that it is also asking the court for an order granting that it be reimbursed for the duties paid since the extension was... 

Macsteel CEO Mike Benfield
Macsteel CEO Mike Benfield

Opinion: Current priorities for South Africa’s electricity policy

3rd June 2021 In this summary of a presentation made to a colloquium organised by Capacity Building Programme for Employment Promotion, Creamer Media CEO and Wits University economics lecturer Dr Kenneth Creamer outlines five priorities for South Africa’s electricity policy 

Priorities on road to electricity reform
Photo by Creamer Media
Priorities on road to electricity reform

The five steps Meridian says South Africa should take in the next 500 days to future-proof energy sector  

By: Terence Creamer     3rd June 2021 Specialist economics advisory group Meridian Economics has outlined five practical actions that could be taken in the next 500 days to address South Africa’s immediate electricity crisis and position the broader energy sector for future sustainability and climate resilience. In a briefing note... 

The five steps Meridian says South Africa should take in the next 500 days to future-proof energy sector

Regulator to make decision on Eskom’s latest R8.4bn RCA claim by end-August 

By: Terence Creamer     1st June 2021 The National Energy Regulator of South Africa (Nersa) has published a new regulatory clearing account (RCA) application from Eskom, through which the State-owned utility is seeking to recoup R8.4-billion in cost and revenue variances for the 2019/20 financial year. The application is the first... 

 Regulator to make decision on Eskom’s latest R8.4bn RCA claim by end-August

Steel backlog won’t be solved by eliminating safeguard duties, AMSA avers 

By: Terence Creamer     31st May 2021 Steel producer ArcelorMittal South Africa (AMSA) has rebuffed increasingly vociferous calls for the elimination of safeguard duties to ease ongoing supply constraints and price increases in the domestic market. CEO Kobus Verster acknowledges that some backlogs, which began to emerge in late 2019... 

AMSA CEO Kobus Verster
Photo by Creamer Media
AMSA CEO Kobus Verster

South Africa’s about-turn on solar panels raises industry ire

By: Bloomberg     27th May 2021 South Africa’s plans to buy emergency power, already the subject of a court challenge, face fresh controversy after a local-content requirement for solar-panel frames was scrapped subsequent to the award of the tenders. The 65% local-content requirement on aluminium frames for photovoltaic panels... 

Western Cape government urges Mantashe to lift embedded generation licence-exemption threshold to 50 MW

By: Donna Slater     26th May 2021 The Western Cape government, through its Finance and Economic Opportunities Minister David Maynier, has submitted comments to the Department of Mineral Resources and Energy (DMRE) to amend Schedule 2 of the Electricity Regulation Act to increase the licence-exemption cap for embedded generation... 

‘Ambiguous’ draft Electricity Regulation Act amendment will fail to unlock investment

By: Terence Creamer     26th May 2021 A regulatory reform exempting small and medium-sized electricity generation projects from the requirement of a National Energy Regulator of South Africa (Nersa) licence is an “obvious and easy way to liberate a huge pipeline of investment that will assist South Africa to have sufficient... 

Professor Anton Eberhard
Photo by Creamer Media
Professor Anton Eberhard

50 MW reform won't hurt Eskom and would stimulate recovery, leading proponent outlines in submission 

By: Terence Creamer     25th May 2021 The organisation whose initial analysis indicated that reforming Schedule 2 of the Electricity Regulation Act to exempt embedded generation projects of at least 50 MW in size from the country’s cumbersome licencing process could unlock 5 000 MW of new capacity within five years has made its... 

50 MW reform won't hurt Eskom and would stimulate recovery, leading proponent outlines in submission

EIUG rejects ‘arbitrary licensing threshold’ as 10 MW versus 50 MW debate rages 

By: Terence Creamer     24th May 2021 Large electricity consumers have again called for proposed amendments to Schedule 2 of the Electricity Regulation Act, which governs the registration and licensing of distributed-generation plants, to be “meaningful” in a context where load-shedding cost the economy up to R160-billion in 2020... 

EIUG rejects ‘arbitrary licensing threshold’ as 10 MW versus 50 MW debate rages

Critical structural reforms taking too long – BLSA

By: Donna Slater     24th May 2021 The structural reform required to transform South Africa’s economy has “frustratingly” progressed very little, even with the establishment of Operation Vulindlela, Business Leadership South Africa (BLSA) CEO Busi Mavuso asserts. She says organised business has consistently argued that South... 

BLSA CEO Busi Mavuso
Photo by Creamer Media's Donna Slater
BLSA CEO Busi Mavuso

Operation Vulindlela ‘close to resolving’ debate on easing path for distributed power projects  

By: Terence Creamer     21st May 2021 Deputy Finance Minister David Masondo reports that Operation Vulindlela is close to resolving an ongoing policy discussion within government on the reforms needed to increase electricity supply “by allowing the private sector to invest more freely in its own generation”. Delivering his Budget... 

Operation Vulindlela ‘close to resolving’ debate on easing path for distributed power projects

Mantashe again swats away calls for 50 MW licence-exemption cap on distributed plants  

By: Terence Creamer     18th May 2021 Mineral Resources and Energy Minister Gwede Mantashe has again swatted aside calls for a 50 MW licence-exemption threshold for distributed-generation plants, describing such calls, which have been made by organised business and even endorsed by Eskom, as “academic” in light of a departmental... 

Mineral Resources and Energy Minister Gwede Mantashe
Photo by Creamer Media's Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

Nersa to assess new NPA between Eskom, Hillside smelter  

13th May 2021 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about a new Negotiated Pricing Agreement (NPA) between Eskom and the Hillside aluminium smelter, what the process will be for Nersa to adjudicate the NPA and if there are likely to be more such NPAs with other... 

Nersa to assess new NPA between Eskom, Hillside smelter
Nersa to assess new NPA between Eskom, Hillside smelter

Eskom highlights financial limitations as it mulls industrial applications for discounted tariffs 

By: Terence Creamer     12th May 2021 State-owned electricity producer Eskom confirms that it has been approached by customers in various industrial sectors with regard to possible applications for discounted Negotiated Pricing Agreements (NPAs), but says its weak financial position prevents widespread implementation. The first NPA... 

 Eskom highlights financial limitations as it mulls industrial applications for discounted tariffs

Regulator gears up to evaluate new discounted tariff deal for Hillside smelter  

By: Terence Creamer     11th May 2021 The National Energy Regulator of South Africa (Nersa) has invited stakeholder comment on a proposed 10-year negotiated pricing agreement (NPA) between Eskom and the Hillside aluminium smelter, in KwaZulu-Natal, which is owned by South32 and is Eskom’s largest single customer. The proposed NPA is... 

The Hillside aluminium smelter
The Hillside aluminium smelter

‘Right policy changes’ could ignite R150bn in electricity investment by private firms  

By: Terence Creamer     10th May 2021 Business Leadership South Africa, which is made up of some of South Africa's largest domestic and multinational companies, estimates that private firms would move to invest billions in new power generation capacity in the near term should the rules governing embedded or distributed plants be... 

 ‘Right policy changes’ could ignite R150bn in electricity investment by private firms

Nersa urges stakeholders to join it in opposing Eskom’s latest court challenge 

By: Terence Creamer     10th May 2021 The National Energy Regulator of South Africa announced on Monday that it would oppose an Eskom High Court application seeking to review and set aside the Energy Regulator’s latest regulatory clearing account determination. In an unusual step, the regulator also urged other stakeholders to join... 

Nersa urges stakeholders to join it in opposing Eskom’s latest court challenge

Reforms needed to unlock private energy capacity  

7th May 2021 Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about increasing calls for reforms to the Electricity Regulation Act that will truly unlock new private capacity. 

Reforms needed to unlock private energy capacity
Reforms needed to unlock private energy capacity

Indebted Eskom balks at power deal offered by Turkish generator

By: Bloomberg     6th May 2021 Eskom Holdings, South Africa’s State power utility, doesn’t want to buy electricity from the company that won most of a government emergency-power tender because it’s concerned about the cost and length of the contract, according to two people familiar with the situation. Meeting the terms of... 

Ministerial determination sanctioning private power procurement would spur investment, clear regulatory blockages  

By: Terence Creamer     5th May 2021 The chairperson of the South African Independent Power Producer Association (SAIPPA) believes that the quickest and cheapest way to reduce, or eliminate, South Africa’s growth-sapping risk of load-shedding would be for Mineral Resources and Energy Minister Gwede Mantashe to issue a Ministerial... 

Ministerial determination sanctioning private power procurement would spur investment, clear regulatory blockages

Raising distributed generator licence-exemption cap to 10 MW ‘does not go far enough’ 

By: Terence Creamer     3rd May 2021 Business Leadership South Africa (BLSA) says a proposed amendment to Schedule 2 of the Electricity Regulation Act, which would raise the licence exemption threshold for private distributed-generation plants from 1 MW to 10 MW, “does not go far enough”. Mineral Resources and Energy Minister Gwede... 

Raising distributed generator licence-exemption cap to 10 MW ‘does not go far enough’

Climate commission to build on existing body of work as it finalises South Africa’s ‘just transition’ framework 

By: Terence Creamer     30th April 2021 The Presidential Climate Change Coordinating Commission (PCCCC), which held its second meeting on Friday, intends building on the work already done by the National Planning Commission (NPC) as it seeks to finalise a national ‘just transition framework’ for South Africa’s shift to a climate... 

Commission deputy chairperson Valli Moosa
Photo by Creamer Media
Commission deputy chairperson Valli Moosa

eThekwini aiming to conclude first IPP contract in 2022 as city mulls hydrogen role 

By: Terence Creamer     29th April 2021 The eThekwini metropolitan municipality, in KwaZulu-Natal, is aiming to sign its first independent power producer (IPP) contract next year following the publication of the eThekwini Integrated Resource Plan (EIRP) in 2020, which it described as the first IRP for a local government in South... 

eThekwini aiming to conclude first IPP contract in 2022 as city mulls hydrogen role
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