Energy experts have welcomed changes to the electricity and energy portfolios of South Africa’s new government of national unity but emphasised their high expectations of the ministry.

One of the significant changes in government announced on Sunday, June 30, is the merging of the electricity and energy portfolios and the appointment of Kgosientsho Ramokgopa as Minister of Electricity and Energy. In addition to responsibility for all electricity matters, Ramokgopa will be responsible for guiding South Africa on its energy transition journey.

Proposed amendments to the Electricity Regulation Act (ERA) aim to consolidate control of electricity planning and procurement with Ramokgopa aiming to enhance process efficiency and build on proactive measures against load shedding over the past two years. The ministry is set to focus on driving energy-sector reforms and promoting initiatives such as the just energy transition alongside enforcing ERA regulations.

The South African Wind Energy Association (SAWEA) said it supports the separation of mineral resources and energy into two separate ministries as this enables the country to prioritise energy security with focus on electricity. “The president has shown his dedication to ensuring a smooth just energy transition with the key ministry adjustments fostering a concerted effort to achieve distributive, restorative and procedural justice,” said Niveshen Govender, CEO of SAWEA.

The South African Photovoltaic Industry Association (SAPVIA) welcomes the changes. “The minister has a solid appreciation of the contribution that solar PV can and has made to the country’s electricity supply. We look forward to again working alongside his ministry to contribute to energy security by tapping into the abundant solar resources that the country can access," said SAPVIA CEO Rethabile Melamu in a social media statement.

Getting to work

While the outlook is positive, there is still significant work required to transform the industry to achieve energy-security goals.

Industry challenges remain a concern, particularly ahead of the Renewable Energy Independent Power Producers Procurement Programme BW7 submission deadline and the dwindling grid capacity in wind-rich areas, SAWEA stated. “We have high expectations of the newly formed Ministry of Electricity and Energy to work with industry and overcome sector challenges, including grid constraints, regulatory and policy uncertainty as well as local manufacturing limitations. To mitigate these, there is a critical need to accelerate the integration of wind energy as part of the country’s energy mix, which requires policy and strategic intervention to ensure affordable, stable and reliable electricity supply across South Africa. The new ministry should prioritise overseeing the maintenance and expansion of the country's electricity infrastructure, inter-departmental energy policy alignment and stabilising the grid,” said Govender.

University of Cape Town-based energy policy and investment specialist Anton Eberhard, commenting on X (previously Twitter), said the appointment of a new electricity and energy minister is welcome, particularly as “the previous incumbent facilitated the procurement and connection to the grid of only 150 MW in five years amid crippling power cuts”.

The decision to retain control of petroleum resources and mining under Minister Gwede Mantashe did not bode well for the construction of new gas power plants, which are necessary to replace ageing coal power stations and to complement fluctuating energy output from solar and wind sources. “Mantashe does not have any experienced international gas advisers and there is poor coordination between the gas ambitions of the Central Energy Fund, PetroSA, Transnet, Eskom and Independent Power Producer Office, among others, with a real risk of failure or unacceptable delays,” said Eberhard

There’s a role for the Presidency’s Operation Vulindlela (which aims to modernise and transform network industries, including electricity) to lead and coordinate gas-to-power initiatives, he said. “Otherwise South Africa could be back in load shedding as old power stations exceed their life and emission limits.”

Chris Yelland, Managing Director of EE Business Intelligence, said the new ministry’s priorities should be to:

• Finalise and sign into law the draft Electricity Regulation Amendment Bill.
• Recall, rework, finalise and publish an indicative Integrated Resource Plan for electricity.
• Prepare, finalise and publish an indicative Integrated Energy Plan.
• With the Presidency, National Treasury, Department of Cooperative Governance and Traditional Affairs and wider stakeholders, prepare a meaningful strategy and action plan for the future of the electricity distribution industry of South Africa.