The announcement of the forthcoming legislative amendments by Mineral Resources and Energy Minister Gwede Mantashe at Investing in Africa Mining Indaba 2020 - which would allow mining companies to generate their own power without licences from the regulator - received the plaudits of the industry. However, there is a need for clarity on what would be required under energy laws to see this to fruition.
Incessant power outrages in South Africa have put mines under increasing pressure to stay afloat, amid production decline and constrained commodity prices. However, many industry players were left encouraged by Minister Mantashe's acknowledgement of the electricity of constraints and the subsequent outlining of measures being considered to address the electricity supply challenges.
Addressing delegates at Investing in Africa Mining Indaba 2020, Mantashe acknowledged that economic growth and sustainability are bolstered in an environment of secure and reliable electricity supply.
As part of measures put in place to address power challenges, Mantashe said in October last year the government gazette the Integrated Resource Plan (IRP) - the country's blueprint for long-term electricity generation options, which provides for a diversified energy mix.
"Following concurrence by energy regulator, NERSA, we are currently gazetting a revised Schedule 2 of the Electricity Regulation Act, which will enable self-generation, and facilitate municipal generation options under 'distribution generation'. This will help close the energy gap caused by deteriorating Eskom plan performance. Depending on the circumstances, the generation plant may only require registration and not licensing," he said.
