Presidency releases 18 month progress report on the Energy Action Plan

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Presidency releases 18 month progress report on the Energy Action Plan

31 MARCH 2024

The Presidency has today, 27 March 2024, released a detailed update on the implementation of the Energy Action Plan (EAP), which shows that significant progress has been achieved over the last six months in implementing government’s plan to end load shedding.

The EAP was announced by President Ramaphosa in July 2022, and is coordinated by the National Energy Crisis Committee (NECOM) under the leadership of the Minister in the Presidency for Electricity, Dr Kgosientsho Ramokgopa. The plan aims to reduce the severity and frequency of load shedding in the short term and achieve energy security in the long term through five key interventions:

  1. Fix Eskom and improve the availability of existing supply
  2. Enable and accelerate private investment in generation capacity
  3. Fast-track the procurement of new generation capacity from renewables, gas and battery storage
  4. Unleash businesses and households to invest in rooftop solar
  5. Fundamentally transform the electricity sector to achieve long-term energy security

As the report released today demonstrates, progress has been made in all five interventions since the announcement of the plan. Key achievements achieved in the past six months include:

  • The return of three units at Kusile power station months ahead of schedule, together with intensive maintenance over the summer period, has increased the availability of Eskom’s existing fleet and reduced load shedding.
  • Following the introduction of powerful tax incentives and financing mechanisms, the amount of rooftop solar installed by businesses and households has more than doubled to over 5000 MW, helping to reduce demand on the grid.
  • In December 2023, three further bid windows were released for 7615 MW of new capacity from solar, wind, gas, and battery storage.
  • 7 preferred bidders for the risk mitigation programme have reached close to date, with the first three projects – which are among the largest solar and battery storage hybrid projects in the world – already connected to the grid.
  • Eskom has launched the Cross Border Standard Offer Programme (CBSOP), which will procure up to 1000 MW in additional power from neighbouring countries for a period of three years.
  • The Eskom Standard Offer Programme has been implemented with a total of 1136.5 MW approved to date, exceeding the initial target of 1000 MW.The first project from Eskom’s Battery Energy Storage System (BESS) programme has been connected to the grid, and will provide 100 megawatt hours (MWh) of storage capacity.
  • Seven other projects are in construction as part of Phase 1 of the programme, which will together provide a total of 833MWh of capacity.
  • An additional 3400 MW of grid capacity has been immediately unlocked in the Cape region through the implementation of curtailment, which enables Eskom to fit more generation capacity onto the grid.An independent board has been appointed for the National Transmission Company of South Africa (NTCSA), which is close to being fully operational.
  • The Electricity Regulation Amendment (ERA) Bill has been passed in the National Assembly, and is now being considered in the National Council of Provinces. The Bill will fundamentally transform the electricity sector through the establishment of a competitive market.
  • The National Wheeling Framework has been finalised and was submitted to NERSA in December 2023. The framework sets out principles for non-discriminatory rights of access to wheel electricity and the charges to be raised, and will enable a standardised approach to wheeling across the country once approved by the regulator.

Government is working towards full implementation of the EAP to bring an end to load shedding once and for all. The Minister in the Presidency for Electricity will continue to provide regular updates on progress to the public.

The report may be accessed on the following link – https://rb.gy/0ebd2b 

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