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Electricity and Energy Committee Receive Briefing on Just Energy Transition

Location: News

Republic of South Africa: The Parliament
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The Portfolio Committee on Electricity and Energy received a briefing on the Just Energy Transition (JET) Investment Plan and Implementation Plan from the Presidency's Project Management Office and the Department of Mineral Resources and Energy.

It was taken through the different investment portfolios within the plan, including details on the progress and financing secured to date. The plan outlined an investment of approximately R1.5 trillion over five years to support the country's decarbonisation efforts.

The committee raised concerns about the impacts on workers and communities affected by the energy transition, particularly the lessons learned from the Komati power station closure, and the need to ensure a truly just transition. Members of the committee also queried South Africa's continued reliance on coal, export of coal, and the potential role of clean coal technologies.

Members of the committee also questioned whether the transition will jeopardise reliable electricity supply, calling for the JET process to be aligned with and supportive of South Africa's broader industrialisation and economic development objectives. They stressed the need to build local manufacturing and skills capacity to support the renewable energy and green economy value chains.

The department was requested by the committee for regular updates on progress and engagement on the JET implementation. The committee acknowledged the complexity and importance of managing South Africa's energy transition in a just and equitable manner, emphasising the need for continuous engagement and oversight to ensure the JET plan delivers on its objectives.

The committee commended the presenters on the involvement of communities and workers, but it cautioned against using the term "poor" to refer to affected communities. Members of the committee stressed the importance of empowering local institutions and skills development from the grassroots level, rather than relying on externally driven initiatives.

The committee also expressed concerns about the weaponising of climate change legislation by developed countries, which could disadvantage South Africa's economy and trade. It stressed the need to ensure the JET process supports the country's broader industrialisation and economic development goals.

Members of the committee highlighted the need to hear directly from the affected communities. They also proposed a site visit to Mpumalanga to engage with local stakeholders.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

Read moreElectricity and Energy Committee Receive Briefing on Just Energy Transition

Eskom reaches no load shedding milestone

Location: News

Eskom reaches no load shedding milestone

Eskom has reached a new milestone having recorded its longest stretch of not implementing load shedding in five years.

South Africa has not experienced planned rolling blackouts since 26 March this year.

Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, told a media briefing that this is an indication that government’s Energy Action Plan, coupled with Eskom’s Generation Recovery Plan, is showing resilience.

“This means two things: load shedding is still an area that requires intervention. I have said that at the right time, when we are meant to call it, we’ll [say] its over but I’m not in a position to make that firm pronouncement.

“The second message this conveys is that the interventions are resilient. By that I mean that even if you have a cluster of units failing, the system is able to carry itself without us having to resort to load shedding. That’s important because it means that we have built some degree head space to allow for incidents where clusters of units fail,” he said.

The Minister emphasised that although the interventions are bearing fruit, “we want to sustain this momentum”.

“The system is performing exceptionally well. It is exceeding our own expectations. 

“We have been able to drastically reduce the amount of megawatts that are not available at any given time. In the comparable period, we were sitting at about 16 400MW not available at any given time and now we are averaging about 11 235MW. 

“There’s an improvement of that 5000MW of the same period last year. From an Energy Availability Factor, this marks an improvement of about 7.3%,” he said.

Ramokgopa highlighted that Eskom has spent at least R15 billion less than last year.

“That’s significant going into the future because these savings are going to be factored into the cost of electricity supply. So going into the future we’ll know that the primary energy, we were able to reduce that cost by R15 billion. 

“We are doing this as we maintain the health of the system. We are not compromising on our planned maintenance so in terms of our summer outlook, we are at about 6900MW of planned maintenance,” he said.

Draft Integrated Resource Plan 2023 (IRP 2023)

Ramokgopa told the media briefing that in terms of the Draft IRP 2023 stakeholder engagements, some 4338 public comments have been received while three rounds of public consultations and at least 26 other virtual and in-person engagements with civil society, industry, academia and government entities took place.

“Of these 4000 plus comments, 136 of these were substantive. There are people who were challenging a number of aspects or making suggestions on how best we can improve this model,” he said.

The Draft IRP is described by the department as South Africa’s electricity generation plan which lays out plans to ensure security of electricity supply by balancing supply with demand, while taking into account the environment and total cost of supply.

“Then next step is that we are deepening that conversation. So we are not [re]starting the public consultation…we are going back to those people who made those substantive submissions having done some degree of revision on the back of the submissions that we have received.

“We will have a physical engagement some time next week and we will have the targeted engagements. We will then consolidate those inputs,” he said.

A report emanating from consolidated inputs will then be tabled before Cabinet which will make a final decision on the plan. – SAnews.gov.za

 

NeoB
Wed, 11/20/2024 - 14:19

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Read moreEskom reaches no load shedding milestone

Government considers intervention in Eskom electricity tariff hike application

Location: News

Government considers intervention in Eskom electricity tariff hike application

Government is preparing to present an intervention regarding Eskom’s proposed tariff hike.

This according to Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, who briefed the media on Wednesday.

The power utility has asked the National Energy Regulator of South Africa (Nersa) to approve its multi-year price determination which would mean, for direct Eskom customers, a 36.15% electricity tariff hike for 2025/26, an 11.81% increase in 2026/27 and a 9.10% rise in 2027/28 – sharply bringing into focus electricity affordability and upping the cost of living.

Nersa is currently holding public hearings on Eskom’s application.

“As government, we will be fashioning interventions to ensure that we provide relief. It’s still a process that is underway inside government. Before Nersa makes that determination, we’d have made our submissions.

“I want to say – with a degree of confidence – that we will get to a situation where we don’t realise a 36, 40% tariff increase. It should be something significantly lower than that. [This will be] taking into account the need for the industry to be competitive; the pressures that the households are experiencing,” he said.

The Minister reminded South Africans that the seventh administration has committed to ensuring that “we fight poverty and reduce the cost of living”.

“We know that the cost of utilities – electricity and water – is a big component of the spending of households and in fact, it’s more disproportionate when you get to low income households.

“I want to say to the country that: rest assured, we will be making interventions that will provide significant amount of relief. What that percentage [tariff increase] that will be, Nersa will make that determination,” he said.

Ramokgopa insisted that despite government’s intervention, “we will not undermine the ability of Eskom to continue to operate”.

“Some of the assumptions and basis of the application of Eskom has got some justification. 

“[However] we think we can do both…Eskom’s ability to execute on its mandate and on the other side, the need for us to provide some degree of relief to households and industry. I am confident, we can find that,” he said. 

The Minister implored South Africans to continue making their voices heard at Nersa’s public hearings on Eskom’s proposed tariff increases.

Public hearings continue as follows:

  • 20 November at the ETC Conference Centre, Spondo Street, Gqeberha, Eastern Cape.
  • 21 and 22 November at the Transnet National Ports Authority, N-Shed Passengers Terminal, Quayside Road, Durban, Kwa-Zulu Natal.
  • 25 November at the Bon Hotel Bloem Plaza, East Burger Street, Bloemfontein, Free State.
  • 27 November at the Mbombela Civic Centre, 1 Nel Street, Mbombela, Mpumalanga.
  • 29 November at the Jack Botes Hall, 14 Bodenstein Street, Polokwane, Limpopo.
  • 2 December at the Protea Hotel, Barend and Margaretha Prinsloo Streets, Klerksdorp, North West.
  • 3 and 4 December at the Eskom Academy of Learning, Dale Road, Midrand, Gauteng.

“What is important is that all of us…let’s subject ourselves to the [Nersa hearings]. So that we allow Nersa the opportunity to have the benefit of the mulitiplicity of views,” Ramokgopa said.

Nersa’s decision on Eskom’s application is expected to only be made on 20 December this year. – SAnews.gov.za

NeoB
Wed, 11/20/2024 - 12:06

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Read moreGovernment considers intervention in Eskom electricity tariff hike application

Construction mafia disrupts projects worth R63bn

Location: News

Construction mafia disrupts projects worth R63bn

Since 2019, construction site disruptions by criminal syndicates have disrupted over 180 projects worth R63 billion, using tactics such as extortion, intimidation, violence and sabotage.

“Their demands for up to 30% of contract value undermine the integrity of our procurement systems and delay critical infrastructure delivery,” the Deputy Minister of Finance, Ashor Sarupen, said on Tuesday in Durban.

Addressing the National Construction Summit on site disruption, the Deputy Minister said while the construction industry faces numerous challenges, none is more urgent than the persistent site disruptions by criminal syndicates and community protests.

South Africa’s construction industry is a vital cog in the economy as it contributes around 3% to gross domestic product (GDP), employs over 1.3 million South Africans, with 176 000 jobs added just in the third quarter of 2024. 

This sector is a lifeline for low-skilled workers, who often struggle to find opportunities elsewhere, however the disruptions undermine the sector’s potential.

“Construction projects also have an unmatched multiplier effect. For every R1 million invested in construction, more than three jobs are created. This is the highest multiplier across all sectors in our economy.

“It is no surprise that the government has identified infrastructure development as a cornerstone of our economic recovery. The 2024 Medium-Term Budget Policy Statement (MTBPS) reaffirmed our commitment to shifting government spending from consumption to investment. 

“This aligns with the President’s call to transform South Africa into a “construction site” to drive inclusive growth and job creation,” the Deputy Minister said.

Over the next three years, government plans to invest over R900 billion in the construction sector.

“Our reforms in procurement, infrastructure investment, and structural economic transformation are concrete commitments to changing the lived realities of millions of South Africans.

“However, to fulfill these ambitions, we must recognize that the construction mafia and site disruptions reveal deeper socio-economic fractures within our country.

“These disruptions are not merely an operational challenge. It is not only businesses that are being disrupted but the lives and livelihoods of our people,” the Deputy Minister said.

They also represent a critical stress test for the broader economic governance architecture, revealing the fragile interdependencies between formal institutional frameworks and reality on the ground.
 
“For now, these disruptions show how easily our carefully planned economic rules break down when they meet real-world challenges.

“They show just how difficult it is to conduct honest business in an environment of deepening unemployment, poverty, and the desperation it often leads to.

“To address this crisis, we need a holistic response—one that combines stricter law enforcement, improved governance, and community engagement to address the root causes of these disruptions,” Sarupen said. 

Government’s intervention
To address these challenges, the government is pursuing a three-pronged strategy, which includes Reforming Public Procurement; Expanding Public-Private Partnerships (PPPs) and Increasing Infrastructure Investment.

“The Public Procurement Act, signed into law earlier this year, lays the foundation for a more transparent, efficient, and inclusive procurement system.

“Under the new regulations, subcontracting will be allowed only where feasible and must follow due process to prevent abuse.

“Government entities will have the option to pay subcontractors directly, eliminating the delays and exploitation often experienced under the current system,” the Deputy Minister said.

He said these reforms are designed to empower small and emerging contractors while safeguarding the integrity of our procurement processes.

Government’s R900 billion in planned investments is supported by capital budgeting reforms to ensure that projects are well-planned and implemented on time, mobilising private sector funding to augment limited public resources and prioritising integrated urban development to create dynamic cities that enable economic activity.

“This is not just about bricks and mortar; it is about transforming lives by providing the infrastructure needed for housing, education, healthcare and transport.

“Our efforts to revitalize the construction sector are part of the broader reform agenda under Operation Vulindlela, a joint initiative between the National Treasury and the Presidency,” Sarupen said. 

Since its launch in 2020, Operation Vulindlela has delivered significant progress in:

1. Stabilising the electricity supply.
2. Reducing the cost and improving the quality of digital communications.
3. Securing sustainable water supply.
4. Enhancing the efficiency of freight transport.
5. Reforming the visa regime to attract skills and grow tourism.

“Phase 2 of Operation Vulindlela focuses on creating dynamic and integrated cities to support urbanization and economic growth. This will require substantial contributions from the construction sector to build the housing, schools, and transport infrastructure needed for our rapidly growing urban population,” the Deputy Minister said. - SAnews.gov.za

nosihle
Tue, 11/19/2024 - 11:08

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Read moreConstruction mafia disrupts projects worth R63bn

Prepaid electricity customers reminded to recode meters before Sunday deadline

Location: News

Prepaid electricity customers reminded to recode meters before Sunday deadline

Eskom is urging all prepaid electricity customers to update their meters immediately to avoid an unexpected loss of electricity.

This as the November 24 deadline for upgrading of meters is now less than a week away.

The power utility explained that after Sunday, 24 November, meters still using Key Revision Number 1 will no longer accept electricity tokens, rendering the meter inoperable.

This could necessitate a meter replacement that could cost up to R12 000, at the customer’s cost.

Group Executive for Distribution at the power utility, Monde Bala, explained how and why the updating of the meter is required.

“Customers with meters still on KRN1 have likely not purchased electricity for more than six months or might be using unauthorised tokens bought from criminal syndicates. 

“To prevent the meter from becoming inoperable, losing power, and incurring replacement costs, it is critical that all customers, including those who have not purchased electricity in the last six months or more, to buy electricity tokens from authorised vendors by 24 November 2024. 

“This will provide them with two sets of 20-digit codes needed to recode and update their meters. We started our public awareness campaigns back in August 2023 and we continue to ask users to come forward so we can offer all the help we have available,” Bala said.

How to check and recode your meter

To verify if your meter is ready, use the following steps:

  • Enter 1844 6744 0738 4377 2416 on your meter keypad.
  • If it shows 1 or 1.2, your meter still needs to be recoded.
  • If it shows 2 or 2.2, your meter is already updated and requires no further action.

To complete the recoding:

  • Enter the first 20 digits of your recode token.
  • Enter the second 20 digits of your recode token.
  • Finally, enter the 20-digit token from your latest electricity purchase to recharge your meter. – SAnews.gov.za

NeoB
Tue, 11/19/2024 - 10:32

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Read morePrepaid electricity customers reminded to recode meters before Sunday deadline

Agreements signed with battery energy storage projects

Location: News

Agreements signed with battery energy storage projects

Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has signed two project agreements and the commercial close of two projects appointed as preferred bidders under the first Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 1.

According to the Department of Electricity and Energy, the two projects secure “a total of 360 MW/1440 MWh storage capacity under the country’s first grid-scale bid window”.

“Both projects, developed by EDF International and their project partners, Mulilo, Gibb-Crede, Pele Green Energy, and a community trust, will be located in the Northern Cape Province and will contribute a total of 180 MW/720 MWh storage capacity on the national grid. 

“Oasis Aggeneis, with a total capacity of 77MW/308MWh will be located at Aggeneis Sub Station close to the town of Aggenys. Oasis Nieuwehoop, with a capacity of 103MW/412MWh, will be located at Nieuwehoop Sub Station close to Kenhardt. Project construction is expected to take no more than 24 months and the storage capacity is expected to come online no later than November 2026,” the department said in a statement on Monday.

The two projects are expected to attract investment of some R4.7 billion with local entity participation of around 42.23% and Black Economic Empowerment (BEE) ownership of 40% achieved across both projects. 

“In support of the current economic challenges that South Africa is facing, the two projects have committed a total of 487 job opportunities (measured in job years) for South Africans, which includes 301 jobs during construction and 186 jobs during operations. 

“The projects have committed to spending 20% of total project costs on local content during construction, and 20% on local content during operations. 

“The projects have also made commitments of over R43 million over their 15-year lifetime, to be spent in areas such as Skills Development, Supplier Development, Bursaries for Black Students, Enterprise Development, and Socio-Economic Development initiatives,” the department explained.

Battery Energy Storage Systems (BESS)

The department explained that BESS technology has a critical role to play in “grid operation by storing energy during periods of less demand for electricity and releasing that energy when needed” – like during peak time.

“In addition, BESS provides grid stability through Ancillary Services for the System Operator. BESS further allows for more integration of renewable energy onto the grid,” it said.

To take advantage of this technology, at least four preferred bidders were announced in November last year with all four reaching commercial close.

“A further fifth project was appointed later [on] 28 March 2024, following value for money negotiations. This last project is finalising preparations and final conditions to reach commercial close in early 2025.

“A further two Battery Energy Storage bid windows [are] currently underway. Bid Window 2 is currently in evaluation phase with [a] bid announcement expected within the next few weeks. Bid submission for Bid Window 3 is planned,” the department concluded. – SAnews.gov.za

NeoB
Tue, 11/19/2024 - 10:51

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Read moreAgreements signed with battery energy storage projects

Immediate Action Required – Customers Must Recode Pre-paid Meters Before the Due Date of 24 November 2024

Location: Business

Monday 18 November 2024: With less than six days remaining until the 24 November 2024 deadline, Eskom is urging all prepaid electricity customers to update their meters immediately to avoid an unexpected loss of electricity. Meters still using KRN1 (Key Revision Number 1) will no longer accept electricity tokens after Sunday, 24 November 2024. This...

Read moreImmediate Action Required – Customers Must Recode Pre-paid Meters Before the Due Date of 24 November 2024

SA seeks balance between livelihoods and renewable energy ambitions

Location: News

SA seeks balance between livelihoods and renewable energy ambitions

By Gabisile Ngcobo

Rio de Janeiro, Brazil - President Cyril Ramaphosa has highlighted the importance of considering the livelihoods and jobs of ordinary people, as the energy sector transitions towards renewable sources.

“As we can go towards renewable energy, there must be a just transition. There is a transition that we in South Africa have to go through and it must be the type of transition that advances the interests of ordinary people, as it grows the economy. 

“The opportunities are enormous, and we just need to utilise the enablers to ensure it benefits everyone,” the President said on Sunday. 

President Ramaphosa spoke in Rio de Janeiro, Brazil, where he and European Commission President Ursula von der Leyen jointly launched the ’Leveraging the Potential of Renewables – The Road to Johannesburg’ campaign.

The campaign was launched during a panel discussion with Hugh Evans, co-founder and CEO of Global Citizen. 

The Global Citizen initiative, along with the 2024 G20 Presidency, supported by Brazilian President Luiz Inácio Lula da Silva, brought together over 450 world leaders, innovators, and advocates on the eve of the G20 Leaders’ Summit, which kicks off today. 

Their goal is to promote urgent action to combat poverty and tackle the climate crisis.

“As we go to renewables, relying more on the sun, wind and hydro, we’ve got to make sure that as people lose jobs and as their livelihoods are eroded, and as towns where we used to draw fossil fuels [become] deserted, we have to make sure that the transition for ordinary people becomes a transition that they benefit from,” President Ramaphosa stressed. 

The Head of State believes workers should not fear job loss without being skilled in new technologies.

A prime example of South Africa's commitment to skilling workers in new technologies is the partnership between the Mpumalanga Provincial Government (which is home to about 80% of power stations in South Africa), the Presidential Climate Commission, the Climate Investment Fund and the World Bank. The entities are working together to explore plans on re-skilling and upskilling the most vulnerable in the labour force and supporting small businesses and co-operatives in local communities.

In last year's State of the Province Address, former Mpumalanga Premier Refilwe Mtshweni-Tsipane assured citizens that plans towards the Just Energy Transition will leave no one behind.

READ | Just energy transition to be inclusive

South Africa faces challenges due to its reliance on fossil fuels, while witnessing growth in the climate sector.

Currently, only 3% of global investments in renewable infrastructure are allocated to Africa, while the European Commission aims to triple renewable energy investment by 2030.

“Africa is well endowed with sun and wind, and that can be utilised to good effect to grow our economies to ensure that at a social level, people have access to electricity,” President Ramaphosa said.

However, he stated that this does not come cheaply and requires financing and clear decisions by leaders, not only on the African continent but globally as well.

He emphasised the need for collaboration between African countries and developed nations to fulfil commitments and secure essential funding and technology.

According to the President, energy drives growth and economies.

The 12-month ’Leveraging the Potential of Renewables – The Road to Johannesburg’ campaign aims to scale renewable energy in Africa by leveraging South Africa’s G20 Presidency. 

The initiative seeks to tackle issues of inequality and promote sustainable development, to provide access to power to millions who currently lack electricity.

According to President Ramaphosa, South Africa's G20 Presidency will also focus on the importance of solidarity and equality in addressing global challenges, particularly in the context of Africa’s history of inequality.

Preparations are underway for South Africa’s G20 Presidency and the hosting of the G20 Summit in 2025. South Africa is set to assume the Chair of the G20 from Brazil on 1 December this year.

The country’s first citizen also touched on the role of the upcoming 2025 United Nations Climate Change Conference (COP30) in focusing on a just transition and the importance of global support for this transition.

In her address, Von der Leyen outlined the European Green Deal and its goal of achieving climate neutrality by 2050. While underscoring the importance of global cooperation, she said there was a need to ensure no continent is left behind, particularly Africa. 

“But if we want to be successful in fighting climate change and protecting nature, we must think globally. 

“We will only be successful if we leave no continent behind, and [ensure] the transition in Africa is a just one.

“Africa has, as we said, all the resources necessary in abundance -- sun and wind, and 60% of the best solar places worldwide. But only 3% of the global investments in infrastructure for renewables go to Africa. And with that, the task is clear. We must step up,” Von der Leyen said. – SAnews.gov.za

Gabisile
Mon, 11/18/2024 - 02:25

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Read moreSA seeks balance between livelihoods and renewable energy ambitions

Loadshedding Remains Suspended and Diesel Savings Reach R15.16 Billion Year-On-Year

Location: Business

Friday, 15 November 2024: Loadshedding remains suspended for 233 consecutive days since 26 March 2024. Eskom continues to realise efficiencies from the investments made in the Generation Recovery Plan that have contributed to South Africa’s energy security and a structural improvement in the coal-fired fleet. The plan has resulted in year-on-year diesel savings of R15.16...

Read moreLoadshedding Remains Suspended and Diesel Savings Reach R15.16 Billion Year-On-Year

R7.6 billion loan to implement Just Energy Transition concluded  

Location: News

R7.6 billion loan to implement Just Energy Transition concluded  

South Africa’s efforts to shift towards a low emissions economy have been strengthened by the conclusion of the negotiations for a R7.6 billion loan for the implementation of the country’s Just Energy Transition Plan (JETP) by the Agence Française de Développement (AFD).

This innovative policy-based financing, the largest ever on AFD's balance sheet, was developed in close collaboration with the JET Programme Management Unit (JET-PMU) in the Presidency and National Treasury to support the just dimensions of the Just Energy Transition (JET), maximising the social outcomes of the energy transition for local communities.

This loan builds on the €300 million public policy loan provided in 2022, bringing France’s total contribution to the JETP to €700 million out of the €1 billion pledged at COP26 ( United Nations Climate Change Conference) in Glasgow.

“The partnership with the AFD presents an opportunity for South Africa to make progress in addressing practical issues of jobs, skills, social support, and governance.

“National Treasury will continue working through the intergovernmental system to integrate JET into our fiscal policy choices. To succeed, coordination across all spheres of government is therefore critical,” National Treasury’s Head of Asset and Liability Management Mmakgoshi Lekhethe said on Thursday.

South Africa’s Just Energy Transition programme is designed to ensure that the livelihoods of communities that are tied to carbon-intensive energy sources, such as coal, are not left behind in the transition to a low-emission economy, and that the energy transition is fair.

A well-managed JET can be a strong driver for new jobs, social justice and poverty reduction as it emphasises the importance of embedding just transition outcomes in policy conditions.

“AFD’s JET public policy loan focuses on social equity and specifically targets support for the social dimensions of the transition, which includes job creation, poverty reduction, social justice and equitable access to electricity supply.

“In addition, the AFD Group is instrumental in providing technical cooperation and capacity building to South African institutions related to JET.

“The loan is linked to a set of policy reforms aimed at ensuring a just transition and AFD is putting a robust monitoring and evaluation framework in place to track the progress of these reforms,” a joint statement by the National Treasury and AFD Groupe said.

South Africa’s JET is supported by a strong governance and institutional framework that includes the Presidential Climate Commission (PCC), a dedicated JET-PMU, a comprehensive investment plan, underpinned by support from international partnerships with France and several other countries.

AFD’s Regional Director for Southern Africa and Country Director for South Africa Audrey Rojkoff said the AFD is working together with JET partners to strike a balance between South Africa’s energy needs and its climate commitments.

“Importantly, we are engaged in addressing the complexity around ensuring that the transition benefits all segments of society with careful planning and implementation. With high levels of commitment, we anticipate positive outcomes throughout the transitioning process,” the statement said. -SAnews.gov.za
 

nosihle
Thu, 11/14/2024 - 15:21

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Read moreR7.6 billion loan to implement Just Energy Transition concluded  

Mashatile to address Knysna Regional 2024 Investment Conference

Location: News

Mashatile to address Knysna Regional 2024 Investment Conference

Deputy President Paul Mashatile is expected to attend and deliver the keynote address at the Knysna Regional 2024 Investment Conference in the Western Cape on Friday.

The Knysna Regional 2024 Investment Conference is organised through a partnership between government, the private sector as well as civil society. 

The theme of this year’s gathering is “Investments through Skills and Capacity building in the broader region”.

The initiative, led by partners that include the Greater Knysna Business Chamber, the Garden Route District Municipality, the Yona Yethu initiative, and the Knysna Local Municipality, is aimed at promoting Knysna as an attractive investment destination in the Western Cape and South Africa.

According to the Presidency, the conference will be attended by delegates from various industries in tourism, telecommunication, logistics, finance, and the food and beverage sectors. 

The gathering will zoom into the Economic Development and Opportunities for Small, Medium and Micro Enterprises (SMMEs), which the Presidency said is a critical force in addressing economic challenges such as poverty and unemployment. 
The attendees will talk about investment promotion aimed at attracting both domestic and foreign direct investment vital for stimulating the local economy, and skills development and training.

They will also touch on meaningful networking and collaboration opportunities to support SMME growth and investment initiatives. The gathering will also highlight investment in key economic sectors promoting sustainable development and addressing critical economic drivers.

“Government continues to champion partnership with the private sector, labour and civil society in tackling some of the most immediate challenges facing the South African economy,” the statement read. 

Deputy President Mashatile will, amongst other government-led investment drives, update the conference on Operation Vulindlela, a joint initiative led by the Presidency and National Treasury to accelerate the implementation of structural reforms and support for economic recovery.

Through this initiative, the Presidency stated that government aims to modernise and transform network and infrastructure industries, including electricity, water, transport and digital communications to improve the living conditions of the people.

Deputy President Mashatile will be accompanied by the Deputy Minister of Higher Education, Dr Mimmy Gondwe, Deputy Minister of Finance Ashor Sarupen and the Deputy Minister of Forestry, Fisheries and the Environment Narend Singh. 

In attendance will also be the Garden Route District Municipality Executive Mayor Andrew Stroebel and Knysna Local Municipality Executive Mayor Aubrey Ndoda Tsengwa. – SAnews.gov.za
 

 

Gabisile
Thu, 11/14/2024 - 13:07

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National Treasury calls for comments on policy proposals

Location: News

National Treasury calls for comments on policy proposals

The National Treasury has called on stakeholders to submit detailed written comments and proposals on the policy review of the taxation of alcoholic beverages, carbon tax and the tax treatment of collective investment schemes.

The policy review of the taxation of alcoholic beverages builds on the previous excise tax policy review in 2014 and proposes adjustments to the current policy framework.

The discussion document covers developments in the alcoholic beverages industry, including changes in the regulatory landscape, the prevalence of alcohol consumption, illicit trade in alcoholic beverages, international observations on alcohol taxation. 
It also covers the potential use of minimum unit pricing in the long term, and other administrative policy considerations in line with the concerns that have been raised by stakeholders.

“With this publication, the National Treasury requests stakeholders to submit detailed written comments and proposals to assist government to further develop an appropriate excise policy framework to reduce the harmful use of alcohol.

“After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget,” National Treasury said on Wednesday.

Written comments can be forwarded to 2024Alcoholreview@treasury.gov.za by close of business on 13 December 2024.

Carbon tax

In addition, stakeholders are encouraged to submit detailed written comments on phase two of the carbon tax design.

In the 2024 Budget, government announced its intention to publish a carbon tax discussion paper for public comment.

This paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s Nationally Determined Contributions (NDCs) commitments.

“South Africa has made commitments under the Paris Agreement to reduce emissions in the range of 398 to 510 million tonnes carbon dioxide equivalent (tCO2e) by 2025 and 350 to 420 million tCO2e by 2030, and to reach net zero emissions by 2050.

“The NDCs set out policies and measures to achieve these mitigation goals and adapt to climate change, and the finance requirements to support the transition to a lower carbon climate resilient economy.

“Carbon tax is an integral part of the package of policy measures aimed at addressing climate change as recommended in the 2011 National Climate Change Response Policy and the 2012 National Development Plan,” National Treasury explained.

The carbon tax discussion paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s NDC commitments.

The discussion document includes proposed adjustments to the basic tax-free allowance, carbon offsets, the electricity levy, the renewable energy premium and the energy efficiency savings tax incentive.

Stakeholders are invited to submit written comments on the draft proposals contained in this paper to carbontax@treasury.gov.za.

“After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024,” treasury said.
 

Tax treatment of collective investment schemes

In addition, National Treasury is also requesting the public to submit written comments on the draft proposals contained in the income tax treatment of amounts received by portfolios of collective investment schemes.

This discussion document stems from a statement in the 2020 Budget Review that indicated that National Treasury would undertake a review on the matter.

“In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts.

“After consultations, government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect role-players.

“This document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962- and puts forward various policy options,” National Treasury said.

Stakeholders are invited to submit written comments on the draft proposals contained in this paper to CIS-Tax@treasury.gov.za.

After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget.

The closing date for comments is close of business on 13 December 2024. -SAnews.gov.za
 

nosihle
Wed, 11/13/2024 - 12:35

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Electricity and Energy Minister steps in to resolve Eskom, City Power impasse

Location: News

Electricity and Energy Minister steps in to resolve Eskom, City Power impasse

A high-level engagement convened by the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and City of Johannesburg (CoJ) Mayor Dada Morero with Eskom executives and City Power has resulted in an agreement aimed at averting a potential electricity crisis in the city.

This follows an Eskom statement last week announcing that it had served the city and City Power with a notice of intention to interrupt power supply at certain pre-determined times of the day due to non-payment of debt.

According to Eskom, the CoJ and City Power owe nearly R5 billion in unpaid bulk electricity supply, plus a further R1.4 billion, which Eskom said will become due and payable at the end of this month.

In response, the City of Johannesburg subsequently called the move by Eskom “unjust, counterproductive, and potentially harmful to… residents and businesses”.

In a statement following the meeting between the Minister and the parties, the Department of Energy and Electricity said the following principles of engagement had been agreed upon by all:

  • The respect for inter-governmental framework characterised by an honest and concerted effort to exhaust all internal process. 
  • The User Pay Principle, where in an event of a dispute, the user is still obligated to pay whilst a resolution process is underway, decoupling the obligation to pay from and a billing query. 
  • The service provider has an obligation to ensure accurate billing.
  • An appreciation that there can be no unilateral implementation of an action or more than one version of what the facts are.

Furthermore, resolutions were reached by the parties in order to resolve the impasse between the two.

“The first resolution is on the appointment of independent technical capacity to evaluate and validate the credibility of the bill levied by Eskom to City Power. In this regard, both parties have agreed that The South African Energy Development Institute will undertake this process. 

“The second resolution is on a 14 days turnaround timeframe for the assessment report to be presented to all parties, the set date being 25 November 2024. 

"The third resolution is that City Power will pay the current account in order for the notice of intention to interrupt power supply to the City of Johannesburg, issued by Eskom, to be withdrawn. 

“Lastly, is the agreement on the importance of the Minister and the Executive Mayor to assure business and households that there is no crisis. The Minister and the Executive Mayor further expressed their appreciation of the willingness of the two parties to work together to ensure the uninterrupted provision of services to the country's economic nerve centre and its residents,” the department said. – SAnews.gov.za

NeoB
Tue, 11/12/2024 - 10:48

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Eskom spending less on diesel

Location: News

Eskom spending less on diesel

Eskom has spent at least 70% less year-on-year on diesel compared to the same period last year - equating to savings of more than R14 billion.

This as the power utility has maintained no load shedding for more than seven months.

“Load shedding has been suspended for over seven months (226 consecutive days) since 26 March 2024. Eskom continues to focus on maximising efficiencies from the investments made in the Generation Recovery Plan. 

“This has resulted in year-on-year diesel savings of R14.6 billion, approximately 70.3% less than the R20.8 billion spent during the same period last year. Further savings are expected in the coming weeks and months due to the improved performance of the coal fleet,” the power utility said.

Furthermore, Eskom has recorded a “significant decrease” in unplanned outages at power stations – allowing the power utility to do planned maintenance.

“Over the past seven days, the average total unplanned outages have been 10 127MW, a significant decrease from 16 892MW during the same period last year, representing a reduction of 6 765MW. 

“This ongoing improvement in reducing unplanned outages enables Eskom to carry out more planned maintenance activities and ensures that more generation capacity is available to meet the country’s electricity demand,” Eskom said.

The Energy Availability Factor (EAF) has also seen an increase to 63.1% for the year to date, with at least four power stations reaching an EAF of over 70%

“Eskom is well-capacitated to meet the electricity demand. 

“By Monday evening, an additional 4 050MW is expected to return online, with four units on cold reserve this weekend to manage the supply and demand balance,” the power utility said.

Eskom said although it continues to produce sustained improvements, there are overloading challenges in certain areas.

“Eskom continues to face network overloading issues in certain local areas due to illegal connections, vandalism, meter tampering, unauthorised network operations, theft of network equipment, and purchasing electricity from unlicensed vendors.

“To prevent public safety hazards and the risk of network overloading, which can lead to load reduction measures and extended unplanned power outages, Eskom strongly urges customers to avoid illegal connections, as this can negatively impact the entire local community. 

“It is also essential for customers to ensure they purchase electricity only from authorised vendors,” the power utility explained.

Consumers are urged to report any illegal activities to the Eskom Crime Line at 0800 112 722 or via WhatsApp at 081 333 3323. – SAnews.gov.za

NeoB
Sun, 11/10/2024 - 11:54

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Africa’s Energy Infrastructure Can Only Succeed with Enhanced Transmission

Location: News
African Energy Chamber

As the demand for electricity continues to rise across the African continent, it is imperative for countries to act swiftly to enhance transmission capabilities and develop robust infrastructure to secure new energy integration sources over the next 25 years.

A recent report by consulting firm McKinsey & Company estimates that $400 billion will be required to enhance electricity transmission and distribution capacity across Africa by 2050. This investment is critical for modernizing energy infrastructure and ensuring energy security for the continent.

During a panel discussion titled ‘Optimizing Africa's Grid Capacity' at the African Energy Week: Invest in African Energies 2024 conference, Eskom's Transmission Group Executive, Segomoco Scheppers, highlighted the potential of the Electricity Regulation Amendment Act 38 of 2024 for South Africa and its neighboring countries.

This legislation will facilitate the establishment of a market operator in South Africa, creating opportunities for diverse players in the energy sector. “This shift signifies a transformative period in our industry as we adapt to new market dynamics,” he stated.

Despite having interconnections of 400 kV with neighboring countries, Scheppers acknowledged existing challenges. “Strengthening these connections is essential for enhancing regional cooperation and ensuring a reliable energy supply across borders. The reliance on thermal generation in the south, particularly to support countries like Zambia, underscores the need for stronger interconnections,” he explained.

Eskom is further embarking on an extensive domestic expansion program aimed at rapid development – an endeavor that also presents significant challenges. “Learning from global leaders in infrastructure development, particularly from experiences in China, could provide valuable insights into scaling our efforts efficiently,” Scheppers added.

Wang Wenan, Chief Representative, African Representative Office at the State Grid of China, discussed the successful completion of major projects, including the largest long-distance transmission project on the continent — a 500 kV DC line from Ethiopia to Kenya.

However, he noted that fostering private participation in energy projects remains a primary obstacle. “Engaging in dialogues about investment barriers and sharing best practices is crucial for unlocking potential growth in Africa's energy sector,” he emphasized.

Also speaking on the panel, Willy Ireri, Executive Director of Osprey Renewables, highlighted that while East Africa has abundant renewable resources such as wind, solar, and geothermal energy, access to reliable transmission infrastructure in this region also remained a critical challenge. “We are therefore committed to collaborate with state utilities and private investors to ensure that generated electricity reaches emerging green industries in the region,” he said.

With favorable legislation for private investment in transmission expected to be operational by 2025, Osprey Renewables aims to play a vital role in facilitating access to renewable energy for consumers.

“Our mandate at Osprey extends beyond generation; we actively engage across the entire value chain and we are seeing growing interest in green manufacturing and hybrid data centers,” Ireri added, noting that the Kenyan government has initiated proposals inviting independent transmission projects, signaling a positive shift toward increased private sector participation.

Power and Grid Segment President at Schneider Electric, Gary Lawrence, highlighted that a modernization of power grids was also needed. “The traditional grid was designed over a century ago for one-directional flow; today's needs require a bidirectional grid that allows seamless interaction between producers and consumer.”

The industry is balancing supply and demand effectively through initiatives such as collaborating with Egypt's Ministry of Electricity and Renewable Energy to develop distribution control centers that enhance grid intelligence and implementing distributed energy management systems in South Africa.

Distributed by APO Group on behalf of African Energy Chamber.

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