Plans from Electricity Minister, Kgosientsho Ramokgopa, to get the private sector involved in funding new power generation capacity could be exactly what South Africa needs to bring a faster end to load shedding.
Tapping into private sector funding and expertise could help to address some of the financial hurdles Eskom faces in adding capacity to the grid.
That’s according to Chris Kruger, MD of Nashua Kopano, responding to news that Eskom is working on a plan to have the private sector build new generation capacity for the utility without relinquishing ownership of the national grid. “It’s a step in the right direction for government to reach out to the private sector for assistance,” says Kruger.
“This could potentially be a mechanism by which government reinvests taxpayers’ money into generating economic growth and job creation, while finding ways to alleviate the energy burden and its impact on the economy. Coherent public/private partnership models will attract a great deal of private sector support and interest.”
Kruger says that it is also encouraging to see that government is placing such heavy emphasis on securing funding to add renewables to the grid, recognising that about R210-billion is needed to upgrade electricity transmission grid infrastructure to incorporate renewable projects. “The just transition is one of the most important programmes for South Africa’s future,” he adds.
“It’s critical that we show progress towards our net-zero goals to remain globally competitive. As encouraging as the latest developments from government are, it’s also important for businesses to work towards their own energy security and sustainability. Growing affordability of solar, along with attractive funding models, enable every business to play its part in the just transition.”