The government's energy action plan is slowly taking shape, with some significant milestones reached in recent weeks, including obtaining a licence for Eskom's new transmission company.
The appointment of the board has taken the government inordinately long. Eskom, of which the transmission company will be a subsidiary, made recommendations for directors more than a year ago. The establishment of the transmission company will open the way towards the unbundling of Eskom and put in place the basis for a competitive energy generation sector, where multiple generators sell to the national grid.
A second significant milestone was the exemption of Eskom from certain generation regulations by the Department of Mineral Resources and Energy, which will allow it to procure excess power from existing independent power producers through what is called"the standard offer". "The technology will be agnostic, and the decision will be a function of how quickly power can be brought on the grid and the cost. Eskom will need to make a decision on how it will recover the cost," said Dicks. Further significant announcements are expected in Finance Minister Enoch Godongwana's Budget on Wednesday.
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