South Africa is considering dropping its licence requirement to ease power outages that are holding back economic growth.
President Cyril Ramaphosa has confirmed that he will publicly announce a plan to combat blackouts that have occurred intermittently since 2008 and are on track for a record this year.
The increase, which has yet to be decided, would be a massive leap from the 100-megawatt limit announced by Ramaphosa last year. The decision will make it easier for private companies, such as mines and factories, to build their own rigs and then sell surplus electricity they do not use to the national grid.
South Africa’s authorities are increasingly looking to the private sector to help deal with the country’s energy crisis, as state-owned Eskom Holdings SOC Ltd. struggles to cope with the surge, with its ‘fleet’ of old coal-fired plants. The company also has $24 billion in debt, the costs of which cannot be paid without government assistance.
No final decision has been made on the cap and it may be raised to a more modest level, such as 200 megawatts.
“The initiatives to be implemented will exempt producers from obtaining environmental clearance for certain specified activities for the development of solar installations,” the same Department said.
08/01/2022
