The civil rights organisation AfrForum today welcomed the announcement by President Cyril Ramaphosa that the limit for embedded electricity generation will be increased form 1 MW to 100 MW. The organisation, in cooperation with a few other organisations, addressed a letter last month requesting the limit to be increased to 50 MW following a suggestion by Gwede Mantashe, Minister of Mineral Resources and Energy to only increase the limit to 10MW.
Morné Mostert, Head of Local Government Affairs at AfriForum, says the organisation believes this announcement is a step in the right direction to solve the power crisis South Africa is currently facing. “By allowing businesses to generate their own electricity, it decreases the pressure on Eskom to supply electricity. Furthermore, it will offer businesses the opportunity to implement new electricity solutions in several industries.”
According to Mostert the new limit will create economic opportunities which will allow South Africa to discover new role players and an expansion of the electricity generation industry.
“This is the fastest way to open up more electricity generation capability in South Africa. It will also erode the monopoly Eskom currently has as an electricity generator to a level where communities will be equipped to manage the process and benefit from it on a base level,” concludes Mostert.