South Africa Heads Towards Expanding its Power Supply

South Africa Heads Towards Expanding its Power Supply: South Africa intends to create a competitive electricity system immediately after the legislation establishes the framework.

South Africa Heads Towards 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.

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.