Electricity generation in South Africa may come online at a faster pace than what we previously thought after president Cyril Ramaphosa proposed wide-ranging and urgent power reforms including a temporary legislative regime that cuts red tape, says Jeff Schultz, senior economist at BNP Paribas South Africa.
BNP Paribas noted that the president announced a series of energy reforms last night, adding that there are a few steps that are likely to make a significant difference on their own. . There is now no limit on the private sector to procure and generate their own electricity. Earlier, the limit on private generation was raised to 100MWh from 1MWh in June 2021 and resulted in 4.6GWh in mining sector pledges for renewable investment.A temporary relaxation of local content requirements