South African Municipalities Move Closer to Buying or Generating their Own Power

  • South Africa’s Minister of Mineral Resources and Energy, Mr Gwede Mantashe, today gazetted for public input the draft amendments to the Electricity Regulations on New Generation Capacity.
  • This gives effect to the announcement by President Cyril Ramaphosa, in his 2020 State of the Nation Address, that municipalities in good financial standing will be enabled to develop or procure own power generation.

The draft amendments are aimed at clarifying the regulatory regime applicable to municipalities for procurement or development of power generation capacity. The amendments will ensure orderly development that is in line with the Integrated Resource Plan (IRP2019) and municipal Integrated Development Plans (IDPs).

Furthermore, the amendments will also ensure that section 34 determinations by municipalities are feasible as they will be issued on the basis that they are supported by a feasibility study with minimum requirements as spelled out in the regulations.

The public has 30 days from the date of gazette to provide comments via online link: NewGenRegs2020@energy.gov.za

The draft regulations can be accessed and downloaded on government gazette, or www.energy.gov.za  & www.dmr.gov.za.

Author: Bryan Groenendaal

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