Ramaphosa vows regulatory reform to facilitate new electricity generation by the mining sector

Ramaphosa’s remarks come in the wake of yet another bout of rolling blackouts.

Stage 2 load shedding was implemented on Monday and Tuesday with some uncertainty on how long it will persist. 

On Tuesday, Ramaphosa delivered the keynote address at the 2022 Investing in Africa Mining Indaba in Cape Town.

Ramaphosa reassured delegates government is working to ensure regulatory reform which will allow new electricity generation by the mining sector. 

“We are working to further cut red tape for the registration of projects, to accelerate environmental approvals and to strengthen the capacity of Eskom and municipalities to link such projects to the grid,” he said.

“According to the Minerals Council South Africa, around 4,000 MW or R65 billion of such electricity generation capacity investment is in the pipeline.”

Ramaphosa added there is an urgent need to introduce greater competition and more diverse energy sources for the future.

“The unbundling Eskom into separate entities for transmission, distribution and generation is on track, and is set to be completed later this year,” Ramaphosa added. 

“We are committed to mobilising the necessary resources and providing the necessary incentives for a new wave of exploration, particularly of the minerals required for the global energy transition.”

Despite the urgency to ensure a stable electricity supply, Ramaphosa told the mining industry the country would not compromise on plans for a just energy transition.

“We have supporting legislation to mitigate and adapt to climate change. In line with our just transition efforts, we are in the process of mobilising international finance as part of the effort to ensure that affected communities and existing industries are supported. 

“It is clear that as our reliance on coal is reduced, pathways towards new economic activity needed to be created for workers in affected industries.”

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