Ramaphosa’s Eight Points To Fix Eskom

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Fixing Eskom was one of Ramaphosa’s most discussed topics on his State of the Nation Address on Thursday evening. Despite starting late with the address due to continued disruptions by the EFF, Ramaphosa delivered the much-anticipated speech.

Ramaphosa announced that over the next few months, Eskom will be working to restore its operational capabilities and implementing measures that will “fundamentally change the trajectory of energy generation in our country,”

The president advised Eskom that in instances where power cuts are unavoidable, they must be undertaken in a manner that is predictable and minimizes disruption and the cost to firms and households.

Eight Points By President To Solve Eskom Problems, #SONA2020

Ramaphosa outlined the following points as a way to address the Eskom power outages:

  • A Section 34 Ministerial Determination will be issued shortly to give effect to the Integrated Resource Plan 2019, enabling the development of additional grid capacity from renewable energy, natural gas, hydro power, battery storage and coal.
  • We will initiate the procurement of emergency power from projects that can deliver electricity into the grid within 3 to 12 months from approval.
  • The National Energy Regulator will continue to register small scale distributed generation for own use of under 1 MW, for which no licence is required.
  • The National Energy Regulator will ensure that all applications by commercial and industrial users to produce electricity for own use above 1MW are processed within the prescribed 120 days.It should be noted that there is now no limit to installed capacity above 1MW.
  • We will open bid window 5 of the renewable energy IPP and work with producers to accelerate the completion of window 4 projects.
  • We will negotiate supplementary power purchase agreements to acquire additional capacity from existing wind and solar plants.
  • We will also put in place measures to enable municipalities in good financial standing to procure their own power from independent power producers.