Page 20 - Energize Issue 1 2023

VIEWS AND OPINION

Significant opportunities exist in SA’s

energy and electricity sectors

by Chris Yelland, managing director, EE Business Intelligence

In the energy and electricity sectors of South Africa, there is much that could be done and should

be done, that is not being done. On the bright side, this should be a cause for some optimism,
as it points to the massive opportunities that are within our grasp.

here would be good cause for Energy Regulator of South Africa
pessimism if we were doing (NERSA) and the South African Local
Tmuch of the right stuff, while still Government Association (SALGA).
remaining stuck in the current mess. At the same time, ongoing energy
The purpose of this article is to and electricity policy uncertainty,
highlight the substantial challenges combined with mixed messaging
that we should be addressing, and, in emanating from the Presidency, the
so doing, appreciate and understand Presidential Climate Commission (PCC),
the significant opportunities that exist National Treasury, DMRE, DPE and DFFE,
by successfully addressing just some of is adding to the toll which regular load
these. shedding is taking on economic growth,
business confidence and investment.
Energy and electricity policy In 2022, the frequency and intensity
South Africa has experienced a of load shedding to protect the national
backward-looking failure by leaders grid reached new record highs. Data Chris Yelland
at the highest level to understand from renowned load shedding app,
and respond to challenges facing EskomSePush, indicates that the
the international and local energy national utility failed to deliver an 2022, some 4.73 times higher than the
and electricity sectors, and to adapt estimated 11 797 GWh of energy during 2496 GWh of unserved energy resulting
accordingly. 3775 hours of rolling power cuts in from 1153 hours of power cuts in 2021.
Over-complicated and outdated
oversight and governance arrangements
by an excessive number of government
departments and agencies, together
with inadequate policy, regulatory,
planning and oversight capacity for
the electricity supply and distribution
industries of South Africa, are plainly
evident.
These governance and oversight
bodies include the Department
or Mineral Resources and Energy
(DMRE), the Department of Public
Enterprises (DPE), National Treasury, the
Department of Cooperative Governance
and Traditional Affairs (COGTA), the
Department of Forestry, Fisheries and Figure 1: Estimated annual unserved energy due to load shedding by Eskom from 2015 to 2022.
(Data source: Stage 1 (1 GW) to Stage 6 (6 GW) Eskom load-shed hours, from EskomSePush;
the Environment (DFFE), the National Graph: EE Business Intelligence.)

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