Durban business sector welcomes govt’s move to ease private power generation

Durban business sector welcomes govt’s move to ease private power generation

The Durban Chamber of Commerce and Industry has welcomed the easing of restrictions on electricity generation for private power plants. 

power plant generic

President Cyril Ramaphosa announced on Thursday that the maximum generating capacity of private firms can be increased to 100 megawatts without a licence. 

It's currently capped at 1 megawatt. 

Ramaphosa said through efforts to reform the sector, companies can build their own generation facilities to supply their energy needs and selling surplus electricity to the utility. 

South Africa's been experiencing back-to-back power cuts this week due to generating unit breakdowns at Eskom power stations. 

READ: uMkhanyakude municipality faces possible dissolution

The chamber believes the move will increase investment into the economy. 

Economist Dawie Roodt says the announcement is long overdue.

"Well, I think this is amazing, this is a wonderful announcement by the president. What is likely to happen now is that there will be quite a number of companies that's got the capacity to invest in power generation that will actually invest in power generation for their own use and also for the use of others. 

READ: Mantashe: We won't do away with load shedding in a day

“The South African government has destroyed South Africa's electricity generation capacity called Eskom. So yes, this is probably the beginning of the end of Eskom."

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