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State of the Nation Address 2022 - Energy highlights

The electricity crisis is one of the greatest threats to economic and social progress. In the last few days, government has once again been reminded of the fragility of the electricity system. Loadshedding continues to have a huge impact on the lives of all South Africans, disrupting business activities, and placing additional strains on families and communities.

Due to the aging power stations, poor maintenance, policy missteps and the ruinous effects of state capture, the country has a shortfall of around 4 000 megawatts (MW) of electricity. During the past year, government has taken firm steps to bring additional generation capacity online as quickly as possible to close the shortfall.

As a result, several new energy generation projects will be coming online over the next few years. This includes:

  • Over 500 MW from the remaining projects in Bid Window 4 of the renewable energy programme, which are at advanced stages of construction.
  • 2 600 MW from Bid Window 5 of the renewable energy programme, for which the preferred bidders were announced last year.
  • up to 800 MW from those risk mitigation power projects that are ready to proceed.
  • 2 600 MW from Bid Window 6 of the renewal energy programme, which will soon be opened.
  • 3 000 MW of gas power and 500 MW of battery storage, for which requests for proposals will be released later this year.
  • an estimated 4 000 MW from embedded generation projects in the mining sector.
  • approximately 1 400 MW currently in the process of being secured by various municipalities.

In addition to closing the energy supply shortfall, government is implementing fundamental changes to the structure of the electricity sector. Eskom has established a separate transmission subsidiary and is on track to complete its unbundling by December 2022.

The utility has continued with its intensive maintenance programme to reverse many years of neglected maintenance and underperformance of existing plants. To regulate all of these reforms, on 9 May 2022 Cabinet approved amendments to the Electricity Regulation Act, 2006 (Act 4 of 2006) for public comment.

These far-reaching amendments will enable a competitive market for electricity generation and the establishment of an independent state-owned transmission company.

Source: State of the Nation Address 2022 Highlights

The National Energy Efficiency Campaign

The government and Eskom have committed to increase our energy capacity, but this will not be enough on its own. The government has been reaching out to all South Africans through the National Energy Efficiency campaign to encourage all sectors of society to conquer their “energy addictions”. By growing a culture of activism around energy savings, we can take control of our energy situation and ensure a better future for all.

A website for the National Energy Efficiency Campaign provides more information on what you can do to save energy. #PleaseUseOnlyWhatYouNeed

As energy champions, your willingness to participate in this campaign is important for its success. Your voices will add credibility to the campaign and will help to highlight the need for South Africa to become energy efficient and adopt a culture of energy savings. In addition, your involvement will help to highlight the severity of the challenges that confront the country’s energy infrastructure.

Electricity Saving Tips

  • The first and easiest way to reduce your usage is to switch off unnecessary lights.
  • Boil enough water only for the number of cups of tea or coffee you’re making. Use a hot water bottle rather than an electric blanket. Use only cold water to wash your hands, to prevent the geyser from unnecessarily turning on.
  • Take advantage of sunlight to warm rooms during the day, but then close the curtains to reduce heat loss during the evenings.
  • Think before switching on the heater – rather dress warmly; use a blanket and a hot water bottle to keep cosy.  Electric space heaters can account for up to 17% of your evening peak power consumption. When using heaters, only heat the rooms that you’re spending time in.​
  • Keep an eye out for Power Alert on SABC, etv and DStv.  The colour-coded alerts share the electricity supply status levels with the required switch-off actions to effectively reduce electricity demand.  Please respond immediately by switching off unnecessary lights, your geyser and pool pump.  Read more

Documents

More information on energy-saving programmes


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