President Cyril Ramaphosa has approved a Memorandum of Understanding(MOU) on January 5, 2024, between the Minister of Public Enterprises, Pravin Gordhan and the Minister of Electricity, Kgosientsho Ramokgopa to clarify their respective responsibilities concerning the South African Electricity Supply Commission (ESCOM) and to resolve electricity crisis in the country. According to the Ministry of Mineral Resources and Energy, South Africa’s total domestic electricity generation capacity from all sources is 58,095 megawatts .The MOU outlines the roles and responsibilities of these ministers in ensuring the realization of the energy action plan setting the country for a better economic emergence.
President Cyril Ramaphosa has approved a Memorandum of Understanding signed between the Minister of Public Enterprises, Pravin Gordhan and the Minister of Electricity, Kgosientsho Ramokgopa on January 5, 2024, to clarify their respective responsibilities concerning the South African Electricity Supply Commission (Eskom) and to resolve electricity crisis in the country. Eskom generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa. Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors.
“While significant progress has been made in reducing the severity of load shedding, much work still needs to be done to guarantee a secure supply of electricity. The collaborative approach outlined in the Memorandum of Understanding will further strengthen Eskom’s efforts to resolve the electricity crisis”.
Cyril Ramaphosa, President of the Republic – South Africa
The Memorandum of Understanding takes into account the Eskom Memorandum of Incorporation and outlines the roles and responsibilities of the Minister of Electricity. Minister Kgosientsho Ramokgopa among other responsibilities is to ensure the implementation of the Energy Action Plan, the implementation of the Eskom Generation Recovery Plan and ensure the generation fleet performs optimally and results in security of supply and low level of load shedding.
“We are still seized with the responsibilities of ensuring that we keep the lights on. And also use this period to do what we call opportunity maintenance given the fact that some of you are energy intensive users”.
Kgosientsho Ramokgopa , Minister of Electricity – South Africa
The South African economy has in the past decades grown at a fast pace which has also led to an increase in the demand for electricity. It also intends to increase domestic vehicle production, including a target of 20% of vehicles manufactured being hybrid electric vehicles by 2030.South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. Currently coal is by far the major energy source for South Africa, comprising around 80 percent of the country’s energy mix. According to the 2019 Integrated Resource Plan (IRP), 24,100 MW of conventional thermal power sources, specifically coal, are likely to be decommissioned within the next 10-30 years.
