Trade union Solidarity has recommended the removal of all barriers to the deregulation of electricity generation and the development of a tariff system favourable to small-scale power producers, in a bid to combat South Africa’s energy crisis.
Solidarity yesterday called on small power producers to apply in their hundreds for generation permits to the National Energy Regulator of SA (Nersa).
Last year, the government amended the regulations for large-scale private power generation, giving effect to the generation of up to 100MW, without needing a licence.
However, Solidarity chief executive Dr Dirk Hermann said there was still uncertainty among entrepreneurs and power producers due to the major lack of political will.
Hermann said that Solidarity would also submit a parliamentary petition to get any possible obstacles or barriers out of the way.
“Our members’ jobs and income are being destroyed on a large scale as a result of the current power crisis. The biggest act of job protection we can undertake right now is to do everything possible to feed power into the system,” Hermann said.
“If we continue to place our hope in Eskom and the state, it would result in a power depression. We call on developers, shopping malls, big companies, resident associations, entrepreneurs, major farmers and others to submit applications for the generation, distribution and sale of power. It is the right thing for the country, and it offers commercial opportunity.”
Solidarity said it would establish a help-desk to assist applicants when they were applying for permits.
The call comes in the wake of a report by the Solidarity Research Institute (SRI), which shows that from now until 2035, South Africa will have to generate almost as much power coming from the private sector as what the entire Eskom is producing at the moment.
The report said the crisis could be exacerbated as South Africa will lose generation capacity of 22 000MW, because coal-fired power stations will reach the end of their life between now and 2035.
The report also shows how the lack of electricity impoverishes South Africans and makes South Africa as a whole, unfavourable for investment.
According to Connie Mulder, the head of the Solidarity Research Institute, Said Stage 6 load shedding would become the norm, if this current trend continues.
Mulder was of the view that South Africa’s generation capacity was currently 9.7 percent lower than in 2012, while the population has grown by more than 8 million people.
Eskom currently has an installed generation capacity of 51 115MW, with a nominal capacity of 46 466MW, yet peak demand of 34 155MW cannot be met at present owing to ongoing unplanned failures of generating units.
Solidarity has also announced that it plans to become involved in power generation itself through the development company Kanton, of which Solidarity is the main shareholder.
Hermann said they were convinced that “the barriers to private power generation would break”.
“We want to prepare for it by becoming involved with power generation on small-scale, and by creating skills. The private sector must now remove all possible bottlenecks,” he said. “Only if there are many and different types of applications will all the obstacles to private power generation be removed.
“We believe this crisis has created a will for private generation of power with the government. Nersa must do everything possible to remove all the obstacles.
“If there exists any administrative bottlenecks, we will also be prepared to remove those through litigation,” Hermann said.
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