Relief as Ramaphosa announces surprise energy reform plans
10 Jun 2021
Charging ahead: President Cyril Ramaphosa said municipalities could approve grid connection applicants and that bids from solar parks were receiving attention.
The government has taken the decision to considerably free up South Africa’s electricity generation market in an effort to resolve the country’s recovery-dampening energy crisis.
Addressing the nation on Thursday, 10 June, President Cyril Ramaphosa announced the decision to amend the Electricity Regulation Act to lift the threshold for companies to produce their own electricity without a licence to 100 megawatts. This comes after a tussle to get the limit increased to 50 megawatts shortly after a government announcement in April that the limit would be increased from 1MW to 10MW.
Denel, the state-owned arms manufacturer, announced yesterday that it was engaging with contractor Saab Grintek Defence to reach an ’amicable outcome’ regarding its bid to have Denel put into liquidation over unpaid debts.