PHUTI MOSOMANE
DURING the delivery of the Presidency budget vote on Wednesday, President Cyril Ramaphosa expressed that the government has made significant strides in addressing the energy crisis.
He highlighted the establishment of three collaborative work streams between the government and the business sector, with a specific focus on energy, logistics, and combatting crime and corruption.
He emphasized that the government has taken significant steps towards resolving the issue by establishing three collaborative work streams between the government and business sectors.
These work streams are specifically dedicated to tackling energy, logistics, as well as crime and corruption.
Ramaphosa underscored that the paramount objective at present is to eradicate load shedding entirely and attain a state of energy security.
“Our overriding priority now is to end load shedding and achieve energy security,” he said.
Ramaphosa highlighted the advancements made by the government in the past nine months in implementing the measures outlined in the Energy Action Plan.
He mentioned that as part of the economic reforms in network industries, the government has enabled the private sector to invest in electricity generation projects of any scale.
Subsequently, he stated that there are currently over 100 projects in various stages of development, collectively representing over 10,000 MW of new generation capacity and attracting investments exceeding R200 billion.
“The exponential growth of private sector investment in electricity generation is proof that this reform is having a major impact. These investments will significantly close the shortfall in electricity supply,” he said.
Ramaphosa expressed satisfaction with the reform process, noting that it has attracted a diverse range of investors, including women-led businesses, black investors, local traditional investors, and foreign investors from various countries such as China, the Middle East, United States, Canada, Turkey, and Europe.
He specifically mentioned the significant investments of over R100 billion in renewable energy in the Northern Cape, which has resulted in exponential economic growth in the province and the creation of numerous jobs.
In addition, the government has expedited the procurement of new generation capacity. Three projects from the risk mitigation program have entered the construction phase, and an additional five projects are expected to achieve financial close in the current quarter.
Ramaphosa revealed that project agreements have been signed with 25 preferred bidders from Bid Window 5 and 6, totalling approximately 2800 MW, out of which 784 MW is already under construction.
Furthermore, he announced that in the upcoming months, the government will initiate the procurement of more than 10,000 MW of additional generation capacity from wind, solar, gas, and battery storage. This initiative aims to further address the energy supply shortfall.
INSIDE POLITCS
