State to look at creating another power utility, separate from Eskom

Load shedding is becoming a way of life for South Africans. A source of constant frustration for many businesses and households alike.

However, is there a glimmer of hope in the future? Is there a spark of light at the end of the dark tunnel?

Addressing delegates at the annual Investing in African Mining Indaba in Cape Town on February 3, Minister of Mineral Resources and Energy Gwede Mantashe said the government has accepted it must allow mining companies to produce energy for their own use.

He explains that while global economic growth is expected to increase from 2.9% in 2019 to 3.4% in 2021, South Africa’s economic growth for the year will most likely decrease by 1%. This expected decrease stems from structural constraints and power outages.

Acknowledging South Africa’s issues with energy, Mantashe says serious decisions must be taken. One of these decisions is allowing local mining companies to create energy for self-use.

Minerals Council of South Africa CEO, Roger Baxter, welcomes Mantashe’s acceptance that private power, especially for self-use, can play a crucial role in addressing Eskom’s troubles. Baxter claims load shedding is wreaking havoc on the mining industry, but this can be resolved through mining companies generating their own electricity.

While the mining industry has much to look forward to, it seems that foreseeable future holds promise for South African households and businesses.

Following his address at the Indaba, Mantashe reportedly told journalists that the government hopes to create a new power generation entity. One which will be totally separate from Eskom.

During a briefing, Mantashe explained to journalists that he had invited investors to either invest on their own in the creation of a power generation entity or partner with the government.

While claiming the venture must ideally be a partnership between private investors and the government, Mantashe claims the venture must use various technologies, which will include gas, clean coal and solar power.

With Mantashe speaking of another power utility operating in South Africa, do you feel businesses and households will benefit from a second power utility? Do you feel the second entity should be state-owned or be a private institution?

Share your views and thoughts with us in the comment section below.