Tonight, I want to address you about the energy crisis that is confronting our nation.
During the past three weeks, severe load shedding has disrupted all of our lives and caused immense damage to our economy.
All the people I have spoken to have said this is the time when the country must unite to address this challenge.Firstly, are aimed at improving the performance Eskom’s existing fleet of power stations;Thirdly, are intended to massively increase private investment in generation capacity;Finally, are directed at fundamentally transforming the electricity sector and positioning it for future sustainability.
After years of state capture and mismanagement, a capable and effective management team is working hard to turn the utility around and reverse years of decay.In recent weeks, a combination of factors resulted in 18,000 MW of generation capacity being lost, and forced Eskom to implement stage 6 load shedding.
The agreement reached between Eskom and workers has allowed critical repairs to the units that had broken down to be undertaken and normal electricity generation operations to resume. One of the first steps we took to address the electricity shortfall was to revive the renewable energy procurement programme in 2018. Since then, over 2,000 MW of solar and wind power has been connected to the grid through Bid Window 4 of the programme. A further 2,600 MW of capacity has been procured through Bid Window 5, which will begin to add capacity from early 2024.
First, we are fixing Eskom and improving the performance of our existing fleet of power stations. Over time, the maintenance programme of Eskom’s electricity generation fleet has declined. These are power plants which built more capacity than was required and can now supply this excess power to Eskom.
Eskom will also use interim power solutions, such as mobile generators, to supplement current generation capacity for a limited period. We will use climate funding provided through the Just Energy Transition Partnership to invest in the grid and repurpose power stations that have reached the end of their lives.
Our second priority is therefore to accelerate the procurement of new capacity from renewables, gas and battery storage. We will release a request for proposals for battery storage by September this year, and a further request for gas power as soon as possible thereafter The process, from design to commercial operation, has tended to take more than three years due to lengthy regulatory processes and red tape.
There was broad agreement that this process should be hastened once the special legislation is tabled in Parliament. I have instructed departments and entities to review all existing time frames and to ensure we process all applications on an urgent basis. These measures are preferable to declaring a state of disaster or even emergency, as some have suggested.
This means that those who can and have installed solar panels in their homes or businesses will be able to sell surplus power they don’t need to Eskom. Eskom has established an independent transmission company and is on track to separate its generation and distribution businesses by the end of 2022. We will soon be appointing boards for the transmission and generation entities.
To ensure that these measures are implemented in a coordinated manner, I have established a National Energy Crisis Committee. We aim to do this by stabilising Eskom and improving plant performance, establishing a competitive electricity market, opening the way for private investment in new generation capacity and increasing our investment in renewables.In the process, we will position our country as a leading player in the transition to new and sustainable energy sources, turning this crisis into an opportunity for future growth and resilience.
Last weekend, I visited the Tutuka power station in Mpumalanga, whose performance has been badly affected by criminal activities. We heard of maintenance spares being stolen and sold back to Tutuka and other power stations.
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