Building and implementing South Africa’s energy plan17 November 2020
As the Department responsible for energy security of supply, we are on track to fully implement the Integrated Resource Plan, IRP 2019.Energy security in the context of theIRP2019is defined as South Africa developing adequate generation capacity to meet its demand for electricity, under both the current low-growth economic environment and even when the economy turns.
Generation capacity must accordingly be paced to restore the necessary reserve margin and to be ahead of the economic growth curve at least possible cost.
As reflected in the IRP2019, we continue to pursue a diversified energy mix that reduces reliance on a single or a few primary energy sources. The extent of decommissioning of the existing coal fleet due to end of design life, could provide space for a completely different energy mix relative to the current mix. In the period prior to 2030, the system requirements are largely for incremental capacity addition (modular) and flexible technology, to complement the existing installed inflexible capacity.
In line with our commitments to reduce emissions, the IRP2019 allocates the biggest growth to renewable energy for the period between now and year 2030. The IRP also recognise the challenges posed by Eskom plant performance and hence “Decision 1” directs that “we must undertake a power purchase programme to assist with the acquisition of capacity needed to supplement Eskom’s supply.”
We have initiated a number of interventions to implement Decision 1. These include the following:
We will soon publicly share procurement timelines for the rest of the 11813 megawatts Determination, that is beyond bid window 5 of renewable energy.
Recognising Eskom’s role in the electricity sector Government under the leadership of Deputy President Mabuza is working tireless to achieve significant systems improvement through the Eskom maintenance
Work is underway to achieve operational and financial stability at the entity. We are therefore on track to resolving our energy challenges and South Africa is open for business.