Energy experts have welcomed the changes made to the electricity and energy portfolios within South Africas National Government of Unity (NGU), but have emphasised their high expectations of the new ministry.
One of the significant outcomes from Cyril Ramaphosas announcement of the Cabinet on Sunday, June 30 for the seventh administration of South Africa was the merging of the electricity and energy portfolios and the appointment of Kgosientsho Ramokgopa as Minister of Electricity and Energy. In addition to looking after all matters relating to electricity for the country, Ramokgopa will now also be responsible for guiding South Africa through its energy transition journey.
The draft Electricity Regulation Act (ERA) consolidates control of electricity planning and procurement with Ramokgopa, aiming to enhance the process efficiency, building on his proactive measures against load shedding over the last two years. The ministry is set to focus on driving energy sector reforms and promoting initiatives such as the just energy transition, alongside enforcing the ERA.
The South African Wind Energy Association (SAWEA) says it supports the separation of mineral resources and energy into two separate ministries as it enables the country to prioritise energy security with a special focus on electricity. The president has shown his dedication to ensuring a smooth just rnergy transition with the key ministry adjustments, fostering a concerted effort to achieve distributive, restorative, and procedural justice, says Niveshen Govender , CEO of the South African Wind Energy Association (SAWEA).
The South African Photovoltaic Industry Association (SAPVIA), welcomes the changes. The minister has a solid appreciation of the contribution that solar PV can and has made to the countrys electricity supply. We look forward to again working alongside his ministry to contribute to energy security by tapping into the abundant solar resources that the country can access,' said SAPVIA CEO in a statement on social media, Rethabile Melamu .
Getting to workWhile the outlook is positive, there is still significant work required to transform the industry to achieve energy security goals.
Industry challenges remain a concern, particularly ahead of the REIPPPP BW7 submission deadline and the dwindling grid capacity in wind-rich areas, Sawea says. We have high expectations from the newly formed Ministry of Electricity and Energy to work with industry and overcome sector challenges, including grid constraints, regulatory and policy uncertainty, as well as local manufacturing limitations. To mitigate these, there is a critical need to accelerate the integration of wind energy as part of the countys energy mix and requires policy and strategic intervention to ensure an affordable, stable and reliable electricity supply across South Africa. The new Ministry should prioritise overseeing the maintenance and expansion of the country's electricity infrastructure, inter-departmental energy policy alignment, and stabilising the grid, says Govender.
University of Cape Town-based energy policy and investment specialist, Anton Eberhard , commented on X (previously Twitter) that the appointment of a new electricity and energy minister is welcomed, particularly as the previous incumbent facilitated the procurement and connection to the grid of only 150 MW in five years amidst crippling power cuts.
He added that the decision to retain control of petroleum resources and mining under Minister Gwede Mantashe did not bode well for the construction of new gas power plants, which are necessary to replace aging coal power stations and to complement the fluctuating energy output from solar and wind sources.
Mantashe does not have any experienced international gas advisors and there is poor coordination between the gas ambitions of CEF, PetroSA, Transnet, Eskom, IPPO, etc. with a real risk of failure or unacceptable delays.
Theres a role for the Presidencys Operation Vulindlela (which aims to modernise and transform network industries, including electricity) to lead and coordinate gas-to-power initiatives, he says. Otherwise SA could be back in load shedding as old power stations exceed their life and emission limits.
Four priorities of the new ministry should be to finalise and sign into law the draft Electricity Regulation Amendment Bill; recall, rework, finalise and publish an indicative Integrated Resource Plan (IRP) for electricity; prepare, finalise and publish an indicative Integrated Energy Plan (IEP); and with the Presidency, National Treasury, COGTA and wider stakeholders, prepare a meaningful strategy and action plan for the future of the Electricity Distribution Industry of South Africa, says MD of EE Business Intelligence, Chris Yelland .
Sign up to receive our newsletters and magazine free - c
