South Africa is one step closer to expanding its power supply. After removing one more hurdle, the law establishing the framework for a competitive power market in South Africa advanced.
South Africa intends to create a competitive electricity system immediately after the legislation establishes the framework.
South Africa is One Step Closer to Expanding its Power Supply
The national legislature on Thursday adopted the Electricity Regulation Act Amendment Bill, which will make it easier for private producers to access the nation’s power grid.
Before an electricity trading platform is established, the bill calls for the establishment of an independent transmission system operator.
Well, Eskom has provided power to South Africa for over a century. The financially troubled utility has been dependent on government bailouts to survive after failing to satisfy demand in recent years, which has led to rolling blackouts that have hurt the economy.
Introducing Fair Rivalry in the Power Sector in South Africa
Mineral resources and energy minister Gwede Mantashe told MPs in Cape Town that the government “is opening competition in the electricity market.” “Anyone can now generate thanks to the deregulation of embedded generation.”
As the long-delayed plans to divide Eskom into transmission, generation, and distribution firms are carried out, the company’s monopoly has been gradually coming to an end.
In addition to expanding the system, the government has increased its efforts to acquire clean energy and released commercial power project developers from the need for licenses, therefore lowering its need for coal-fired power.
Transparent Access to Grid and Energy Markets
The Power Futures Lab at the University of Cape Town stated in a policy brief this month that “an independent transmission company that incorporates system and market operation is key to insulating the heart of the power system from Eskom’s financial woes, and ensuring fair and transparent access to the grid and energy markets.”
For President Cyril Ramaphosa to sign the measure into law, it must first be approved by the National Council of Provinces, the other chamber of parliament. All political parties supported it, except for the EFF, a populist group that said it amounted to privatizing Eskom.
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