Economics
Ramaphosa Unveils Overhaul of South African Energy Industry
- Government to buy more power from independent producers
- Power shortages have constrained output, economic growth
Eskom’s coal-fired power station in Mpumalanga, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
South African President Cyril Ramaphosa announced sweeping changes to the nation’s electricity industry to address energy shortages and reduce reliance on debt-stricken state power utility Eskom Holdings SOC Ltd.
The government will invite private companies to submit bids to supply additional renewable energy to the grid, while businesses will be allowed to produce unlimited electricity for their own use, Ramaphosa said in his state-of-the-nation address in Cape Town on Thursday. Additional capacity will be purchased from existing solar and wind plants, and independent producers will also be permitted to sell their output directly to municipalities.