In his recent State of the Nation Address, President Cyril Ramaphosa underscored his commitment to securing a sustainable and reliable energy supply for South Africa through comprehensive reform of the country’s energy system. Central to this effort is the proposed Electricity Regulations Amendment (ERA) Bill [B23-2023], currently under consideration by the Portfolio Committee on Mineral Resources and Energy in Parliament.
President Ramaphosa emphasized the necessity of reforming the energy sector to enhance competitiveness, sustainability, and reliability for future generations. He highlighted the ERA Bill as a critical step towards positioning South Africa’s economy for growth in a rapidly changing global landscape dominated by climate change and green technologies.
The ERA Bill proposes significant reforms, including the restructuring of Eskom to create a more competitive electricity market. One of the key provisions allows individuals generating surplus electricity for private use to register with the National Energy Regulator to sell excess electricity to the state. This move aims to promote competition and diversification in electricity generation, fostering innovation and efficiency in the sector.
President Ramaphosa also outlined plans to leverage private investment to expand the country’s transmission infrastructure, with over 14,000 kilometers of new transmission lines slated for construction in the coming years. This expansion will accommodate the integration of renewable energy sources, furthering South Africa’s transition towards a greener, more sustainable energy future.
Furthermore, the President emphasized that the government is committed to undertaking a just energy transition that balances the imperatives of energy security, carbon emissions reduction, climate change mitigation, and economic growth. This transition will be executed at a pace, scale, and cost that aligns with the country’s capabilities and priorities, ensuring equitable access to opportunities for all South Africans.
Regarding the progress of the ERA Bill, President Ramaphosa highlighted the Portfolio Committee’s ongoing review of public submissions from hearings held across all nine provinces. Once the committee consolidates these inputs into a comprehensive report, they will proceed to deliberate on the Bill’s clauses and formulate recommendations. Ultimately, the committee’s findings will be presented to the National Assembly for debate and adoption, marking a significant milestone in South Africa’s journey towards a reformed and resilient energy sector.