Additional energy will take demand pressure off Eskom’s strained supply, but the downside will be a reduction in revenue for the power utility.
shows that Eskom sells power directly to some 2 703 industrial, 51 848 commercial and 81 638 agricultural customers. The upside to allowing more independent energy is that it will open the door for investment, which the department of public enterprises estimates at about R120-billion. It will also create much-needed jobs.
Low-cost concessional finance with climate-change-related conditions, is one of the financial mechanisms the utility plans to use to develop stranded infrastructure that will generate socioeconomic benefit for Mpumalanga’s communities. An attractive threshold for embedded generation is another. The reforms to embedded generation will enable further private-sector participation in the generation space, but not in distribution or transmission. In addition, Eskom and municipalities will remain in control of access to the grid.
Billionaire businessman Patrice Motsepe’s African Rainbow Energy and Power has partnered with Absa to form African Rainbow Energy, which is envisaged to boast of R6.5-billion in gross assets covering 31 renewable assets. “Renewables have been one of the most successful asset classes globally offering a unique mix of attractive long-term, inflation-linked returns and growth providing significant scope to deploy further funds. African Rainbow Energy is engaging with other investors to increase its equity base and fund further growth with the aim of listing on the JSE in future,” chief executive Brian Dames said.
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