The government finally clears the way to add new energy to the grid



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Power lines feed electricity to the national grid

Power lines feed electricity to the national grid from the Koeberg nuclear power plant. (Photo by: Education Images / UIG via Getty Images)

  • Energy and mineral resources minister Gwede Mantashe has released approval to add new power generation to the grid.
  • This will force Eskom to buy the new electricity from the successful independent power producers.
  • The first electricity from these projects should land on the grid in 2022.
  • South Africa faces its worst load reduction year on record.
  • For more stories, visit Business Insider South Africa.

As South Africa faces its worst year of load reduction on record, Energy and Mineral Resources Minister Gwede Mantashe has published approval to add new generation of electricity to the grid.

The gazette marks the beginning of a bidding process to provide the new electricity, most of which will come from solar and wind power.

See also: Cape Town and Ekurhuleni are ready to generate their own power, but Tshwane can’t afford

This will force Eskom to buy the new electricity from the successful independent power producers.

The first electricity from these projects should land on the grid in 2022.

The bulletin determines that South Africa must obtain 6,800 new megawatts (MW) of wind and solar photovoltaic energy, while 513 MW must be acquired to generate them from storage, 3,000 MW of gas and 1,500 MW of coal.

See also: Electricity prices will go up 15% next year; this is how it affects you

“The electricity produced from the new generation capacity will be acquired through one or more bidding procedures that are fair, equitable, transparent, competitive and profitable,” the bulletin indicates.

The bulletin paves the way for the fifth bid window (BW 5) of the Renewable Energy Independent Power Producer Procurement Program. Offers will also be received for gas conversion and energy storage plants, as well as for coal.

No deadline has been provided.

See also: Why Eskom is losing charge again and why it will get worse

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