The National Energy Regulator of South Africa (NERSA), has published two draft determinations by Mineral Resources and Energy Minister Gwede Mantashe in terms of Section 34 (1) of the Electricity Regulation Act.
The draft ‘S34 determinations’ are the first step in the process of procurement of new electricity generation capacity in South Africa, totalling some 13 813 megawatts (MW) from independent power producers (IPPs).
The first draft S34 determination relates to the procurement of 2 000MW of new generation capacity between 2019 and 2022, and the second draft S34 determination to the procurement of a further 11 813MW between 2022 and 2027.
The determinations begin the procurement process after the gazetting of the South African national integrated resource plan (IRP) for electricity, 2019 on November 18, 2019.
Despite the current electricity supply emergency, which has resulted in up to Stage 6 (6 000MW) load shedding in SA, NERSA has indicated that now, more than a month since receiving the draft S34 determinations, it will require a further three months to concur with the first S34 determination, and six months for the second.
The Department of Mineral Resources and Energy (DMRE) and NERSA have come under increasing pressure and criticism for the snail’s pace of their bureaucratic processes and decisions. The energy regulator refutes the criticism and said: “NERSA is cognisant of the urgency of the request [for concurrence] as evidenced by the proposed fast-tracked concurrence process in the consultation papers.”