This move was prompted by an urgent need to address the utility’s significant debt levels, which was reported in to have reached ZAR380bn ($26.bn). Government Intervention: The South African government announced plans to unbundle Eskom into three separate entities responsible for generation, transmission, and distribution. South Africa has an electrification rate that is amongst the highest on the continent, with rural electrification around 66 percent, while electrification in urban areas is approximately 93 percent. It sells to Botswana, Lesotho, Mozambique, Namibia, eSwatini Zimbabwe. State Owned Utility: Eskom, the vertically integrated, state-owned power company, generates approximately 95 percent of electricity used in South Africa, as well as a substantial share of the electricity generated on the African continent. The modest pace of expansion will reflect improvements in energy efficiency, as well as continued sluggish growth in the South African economy. After a sharp fall in 2020 because of the coronavirus (Covid-19) pandemic, energy consumption is expected to recover, with an average annual rate of growth of 0.3 percent over the forecast period (2021-30) according to The Economist’s report in March 2021.
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South Africa is the world’s 14th-largest emitter of greenhouse gases and seeks to improve its poor environmental performance. Despite environmental concerns, coal will continue to provide the majority of South Africa’s power for the next decade, although the share from renewables will grow rapidly. The new regulations will come into force in August 2021.Ĭurrent Status: In South Africa, approximately 85 percent or 42,000 MW, of the nation’s electricity is generated via coal-fired power stations. President Ramaphosa in a surprise move announced on June 10 the easing of licensing regulations for self-generation of electricity from 1 Megawatt (MW) to 100 MW potentially releasing as much as 5,000 MW or more of renewable energy onto the grid by 2024. However, as the first additional power is unlikely to come on stream until mid-2022, further load-shedding will be required in the short term. To tackle this long-standing problem, Mineral Resources and Energy Minister, Gwede Mantashe, outlined plans in September 2020 for a new phase of power-generation procurement, to secure 11,813 MW of extra capacity. Government Intervention: The South African economy has been experiencing frequent bouts of load shedding (the local term for rolling blackouts) which has negatively impacted local industry and economic growth.
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