President lifts threshold for companies to produce own electricity

Embedded generation is widely regarded as the quickest way to bring additional megawatts onto the grid

10 June 2021 - 13:15
Wind turbines are shown at the San Gorgonio Pass wind farm in Palm Springs, California.
Wind turbines are shown at the San Gorgonio Pass wind farm in Palm Springs, California.
Image: BLOOMBERG/BING GUAN

President Cyril Ramaphosa has lifted the threshold for companies to produce their own electricity without a licence to 100MW, in a surprise announcement that will be much celebrated by business.

Embedded generation — when a company produces electricity for its own use or for use by others — is widely regarded as the quickest way to bring additional megawatts onto the grid. Companies, mines and farms are believed to have 5,000MW in pent-up projects, which could be released if licensing requirements were lifted.

Eskom was on stage 3 load-shedding on Thursday, dropping 3,000MW of demand from the grid to avoid it being overloaded.

This is a developing story

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