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Regulation News

Energy transition holds greatest promise for growth, job creation and development 

By: Schalk Burger     19th October 2021 A transition away from fossil fuel-based electricity to renewable-based electricity in South Africa can contribute significantly to job creation, growth and increased availability of electricity to support other commercial activities, four investment and energy specialists noted during a... 

South Africa’s electricity woes continue to place manufacturing at risk 

By: Terence Creamer     19th October 2021 The lack of reliable electricity supply is not only leading to lost production and increased costs across South Africa’s shrinking manufacturing sector, but has left enterprises unable to plan, invest and grow, Manufacturing Circle executive director Philippa Rodseth warned on Tuesday. Speaking... 

Photo of power lines

Nersa yet to decide if it will oppose Eskom’s MYPD5 court application 

By: Terence Creamer     19th October 2021 The National Energy Regulator of South Africa (Nersa) has confirmed the receipt of Eskom’s High Court application, through which the utility is seeking to have the regulator’s decision to reject its fifth multiyear price determination (MYPD5) revenue application reviewed and set aside. However,... 

Photo of the Nersa logo

Eskom seeks urgent court order to have 2022/23 tariff application adjudicated by Nersa 

By: Terence Creamer     15th October 2021 State-owned electricity utility Eskom has approached the Gauteng High Court to have the regulator’s recent decision to reject its revenue application for the period 2022/23 to 2024/25 set aside for being “patently irrational and unlawful”. Eskom approached the court this week for a review of the... 

Eskom CFO Calib Cassim, who deposed the  founding affidavit, speaking at a previous Nersa hearing
Photo by Creamer Media Chief Photographer Donna Slater
Eskom CFO Calib Cassim, who deposed the founding affidavit, speaking at a previous Nersa hearing

ESG, incorporating green energy to increasingly drive business development

By: Donna Slater     15th October 2021 In terms of incorporating environment, social and governance (ESG) conscientiousness into business development models, South Africa, and the financial services sector in particular, has historically, and in recent times, been acknowledged as a global leader, law firm Pinsent Masons transactional... 

Electricity wheeling can reduce load-shedding risk if legal, technical uncertainties are addressed

By: Donna Slater     15th October 2021 Tariffs and the legal framework governing the wheeling of electricity from independent power producers (IPPs), which are taking advantage of the recently declared 100 MW licence threshold, will be key factors in IPPs’ ability and willingness to feed surplus power into regional and national power... 

Magazine cover image

FSD Africa backs fintech pioneer to build new platform increasing access to carbon markets

By: Tasneem Bulbulia     12th October 2021 FSD Africa, the UK government’s flagship financial sector programme in Africa, is making an initial investment of £650 000 in a digital solution connecting carbon credits from small-scale green projects across the global south with international buyers. The investment will deliver funding through... 

Ramaphosa lends his weight to plans for raising concessional funding for ‘just transition’ 

By: Terence Creamer     11th October 2021 President Cyril Ramaphosa has doubled down on his argument that South Africa needs to act with “urgency and ambition” in transitioning to a low-carbon economy, but stressed that such increased ambition could not be achieved without financial support from developed economies. In his latest weekly... 

President Cyril Ramaphosa
President Cyril Ramaphosa

PCC’s Olver sees updating IRP to exclude new coal as key policy priority

By: Terence Creamer     7th October 2021 Presidential Climate Commission (PCC) executive director Dr Crispian Olver says updating South Africa’s energy policy to exclude any new coal capacity to 2030 and beyond, while increasing the allocation for renewable energy to at least 30 GW by the end of the decade should be key priorities for... 

Presidential Climate Commission executive director Dr Crispian Olver
Presidential Climate Commission executive director Dr Crispian Olver

De Ruyter says 'substantial' concessional finance available to support just energy transition 

By: Terence Creamer     5th October 2021 Eskom CEO Andre de Ruyter said on Tuesday that the message of the climate envoys who visited South Africa in the run up to the COP26 climate talks in Scotland was that there is “substantial concessional financing available” to enable South Africa to pursue a just energy transition. He indicated,... 

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

Eskom says Nersa’s MYPD5 rejection creates ‘regulatory vacuum’ 

By: Terence Creamer     1st October 2021 State-owned utility Eskom says the rejection, by the Energy Regulator, of its latest allowable-revenue application has created a regulatory vacuum for the electricity supply industry. “Eskom is accordingly considering how to proceed, and is taking advice on its position following the National... 

Eskom branding on a board outside Megawattpark

Implications of Eskom's rejected revenue application unpacked   

1st October 2021 The Energy Regulator has rejected Eskom’s latest revenue application for the three-year tariff cycle starting in 2022 and has proposed that it be submitted again under a new methodology. Engineering News editor Terence Creamer unpacks the development and its implications.   

Photo of Terence Creamer
Implications of Eskom's rejected revenue application unpacked

Eskom mulls legal options as Energy Regulator rejects MYPD5 application 

By: Terence Creamer     30th September 2021 The Energy Regulator has voted to reject Eskom’s fifth multiyear price determination (MYPD5) application for the three financial years from 2022/23 to 2024/25 and will now request the utility to make a new one-year submission "preferably based on the principles of a new [methodology] approach... 

A photo of a mic at a Nersa hearing
Photo by Creamer Media
Nersa will hold public hearings on its proposed new price determination methodology from October 25 to 29

Immediate introduction of new tariff methodology ‘not feasible’ 

By: Terence Creamer     27th September 2021 State-owned electricity utility Eskom says it is “not feasible” for the National Energy Regulator of South Africa (Nersa) to make a revenue determination, for implementation on April 1 2022, on the basis of a new methodology that has yet to be consulted or finalised. On September 24, Nersa... 

A sign on the door of a Nersa public hearing

Nersa approves Karpowership generation licences

By: News24Wire      22nd September 2021 The National Energy Regulator of South Africa (Nersa) has approved three generation licences for floating powership provider Karpowership. The decision was taken at a special meeting of the energy regulator on Tuesday afternoon. The regulator approved generation licences for Karpowership at... 

Mantashe appoints new Nersa CEO

By: Creamer Media Reporter      7th September 2021 Mineral Resources and Energy Minister Gwede Mantashe has appointed Advocate Nomalanga Petronella Sithole as CEO and full-time regulator member of the National Energy Regulator of South Africa (Nersa). Sithole's appointment is for a five-year period, effective from August 25. 

A photo of Nersa CEO Nomalanga Sithole
Nersa CEO Nomalanga Sithole

Ramaphosa hints at yet more reforms as he predicts ‘massive investment’ in wake of electricity amendment 

By: Terence Creamer     3rd September 2021 President Cyril Ramaphosa has described a recently gazetted amendment to Schedule 2 of the Electricity Regulation Act, opening the way for sub-100 MW grid-tied embedded generators to supply one or more customers without a licence, as a “defining moment in energy generation in our country”.... 

President Cyril Ramaphosa in a face mask as he prepares to answer questions during a hybrid sitting of Parliament on Friday
President Cyril Ramaphosa in a face mask as he prepares to answer questions during a hybrid sitting of Parliament on Friday

DBSA expects strong demand for $200m embedded-generation scheme amid regulatory reform tail wind 

By: Terence Creamer     31st August 2021 The Development Bank of Southern Africa (DBSA) is optimistic that there will be a significant uptake of its $200-million Embedded Generation Investment Programme (EGIP) in light of recent regulatory changes exempting sub-100 MW facilities from licensing and enabling distributed plants to both... 

Photo of DBSA project finance head Mpho Mokwele
DBSA project finance head Mpho Mokwele

Mogajane warns of Budget cuts as expenditure pressures mount to some R105bn  

By: Terence Creamer     25th August 2021 National Treasury director-general Dondo Mogajane is warning that major Budget cuts will be required to offset a range of expenditure pressures that had arisen as a result of recent government decisions, including the 2021/22 wage settlement, which would increase the public sector compensation... 

National Treasury director-general Dondo Mogajane
National Treasury director-general Dondo Mogajane

Outa notes with concern Nersa subcommittee’s recommendation to approve new nuclear capacity

By: Donna Slater     20th August 2021 The Organisation Undoing Tax Abuse (Outa) reports with “extreme concern” that the National Energy Regulator of South Africa’s (Nersa’s) electricity subcommittee has conditionally indicated approval, on August 20, of the government’s proposal that South Africa should build another 2 500 MW of... 

Ability to sell electricity to multiple customers made explicit in updated 100-MW reform amendment  

By: Terence Creamer     20th August 2021 Mineral Resources and Energy Minister Gwede Mantashe has gazetted an updated version of the amendment to Schedule 2 of the Electricity Regulation Act that he first gazetted on August 12. The update, which is dated August 19, makes it clear that electricity sales from sub-100 MW projects, which... 

Photo of Mineral Resources and Energy Minister Gwede Mantashe
Photo by Creamer Media Chief Photographer Donna Slater
Mineral Resources and Energy Minister Gwede Mantashe

Repower, repurpose plans under way for utility

By: Cameron Mackay     20th August 2021 State-owned power utility Eskom is progressing with plans to repower and repurpose some of its coal power stations, build greenfield power plants with cleaner technologies and invest in necessary grid infrastructure to support these plans. Repowering and repurposing the Komati power station, in... 

Image of the rock statue outside of Eskom's Megawatt Park
Photo by Creamer Media's Donna Slater
A JUST ENERGY TRANSITION Eskom is undertaking modelling work to determine the pace of the utility’s transition to use more renewable energy sources to meet decarbonisation targets

Nersa signals intent to treat sub-100 MW registration as ‘administrative’ process 

By: Terence Creamer     17th August 2021 The National Energy Regulator of South Africa (Nersa) is still analysing the implications that a recent amendment to Schedule 2 of the Electricity Regulation Act, exempting grid-tied generation facilities below 100 MW from licensing, will have on its processes, rules and guidelines. However,... 

Photo showing rooftop solar

Eskom, W Cape govt welcome amendments giving effect to 100 MW reform

By: Donna Slater     13th August 2021 The Department of Mineral Resources and Energy’s (DMRE’s) August 12 Gazetting of its amendment to Section 2 of the Electricity Regulation Act has been welcomed by State-owned power utility Eskom and the Western Cape provincial government. The amendment permits private electricity generators to... 

Mantashe publishes long-awaited amendments to the Electricity Regulation Act 

By: Donna Slater     12th August 2021 Mineral Resources and Energy Minister Gwede Mantashe, in an August 12 Government Gazette, published the eagerly awaited amendments to Schedule 2 of the Electricity Regulation Act to enable distributed generation plants of up to 100 MW to proceed without first obtaining a generation licence. To... 

An image of Mineral Resources and Energy Minister Gwede Mantashe
Mineral Resources and Energy Minister Gwede Mantashe

New framework needed to accommodate third-party electricity generators on the national grid

By: Donna Slater     28th July 2021 The wheeling and trading of electricity produced by third parties into the national grid is a complex issue that requires frameworks and grid capacity building, State-owned power utility retail pricing corporate specialist Shirley Salvoldi has said. She spoke during a webinar on the topic of... 

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... 

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