Electricity supply:

Claims that the government was doing nothing to tackle the electricity supply shortfall were not factual as there was more than 13,000MW in the pipeline, mineral resources & energy minister Gwede Mantashe said in parliament on Thursday.

Mantashe said the department was finalising an additional request for proposals for issue this financial year for the procurement of 513MW of storage, 3,000MW of gas and 2,600MW of renewable energy under bid window 7 and 1,500MW of coal. “These initiatives will bring on line over 13,000MW.” But, he said that it would take some time for these projects to come on stream. “There is no such thing as instant energy,” he said.

“The outcry that we are not addressing the shortfall is not backed by facts,” the minister said in his budget speech in the National Assembly.

He admitted that loadshedding by Eskom had a negative effect on mine output and economic activity. While Eskom had installed capacity of about 45,000MW, it often had only about 30,000MW available.

Mantashe said that altogether, 1,850MW from projects signed under bid window 4 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) had been connected to the grid.

Also, 2,600MW of renewable energy under bid window 5 was procured with the signing of project agreements planned for end of July and end of September. These projects are expected to deliver power into the grid within 24 months from date of signing of project agreements.

The department issued a call for proposals for procurement of 2,600MW of renewable energy under bid window 6 and is finalising with Eskom agreements with preferred projects procured as part of the 2,000MW under the REIPPPP. The National Energy Regulator of SA (Nersa) has registered 553 projects for less than 1MW, totalling 268MW. “Since the 2021 announcement and gazetting of the 100MW embedded generation, the energy regulator has registered six generation facilities with a capacity ranging between 1MW and 10MW. The total capacity to be generated from the six generation facilities is 24MW,” the minister said.

Projects of 100MW have not materialised. The bill to create an independent transmission entity, which would buy electricity from independent producers, will be presented to cabinet and tabled in parliament by the end of July. Amendments to the electricity pricing policy will also be tabled for final approval by the cabinet by the end of July.

iGas, a subsidiary of the Central Energy Fund, has acquired an additional 40% ownership of the Rompco (Republic of Mozambique Pipeline Company) pipeline. The SA and Mozambique governments jointly own 80% of the pipeline, with Sasol owning the remaining 20%. “This advantages us in our gas industrialisation strategy to support our economy,” Mantashe said. “Gas is going to be a gamechanger in the economy.”

Shale gas samples tested internationally show deposits in the Karoo are a reality. Economical and environmental assessment approval is awaited before the next phase is embarked on.

“A gas master plan, yet to be presented to cabinet, is at an advanced stage of development after the publication of the base case report late last year. The plan will consolidate all this work,” Mantashe said.

Regarding nuclear, Mantashe said the department was addressing the suspensive conditions from Nersa on the section 34 determination under the Electricity Regulation Act. “This will ensure that the procurement of the 2,500MW of nuclear energy is completed by 2024.

“The department will continue to exercise oversight on the Eskom implementation of Koeberg nuclear power station long-term operation to ensure security of energy supply for an additional 20 years.”

Preliminary work for the incorporation of the SA National Petroleum Company has been finalised and approved by the cabinet. Mantashe said the company would target R95bn in market potential opportunities, ensure security of energy supply and create jobs.

Mantashe acknowledged that the processing of mining licence applications — the backlog is more than 4,000 — “remains our critical challenge.

“We have dealt with the backlog and are within the legislated times for all applications for which all information has been submitted. On mining applications, over 1,000 prospecting right applications were finalised and about 300 mining right applications were adjudicated.”