Budget Speech: Focus shifts to energy security
In his 2024 Budget speech, Finance Minister Enoch Godongwana spoke of load shedding and it’s impact on the economy.
During his 2024 Budget Speech, Godongwana conceded that rolling blackouts are a problem that confront all South Africans, disrupting production, operations and livelihoods.
As such, he assured the nation that reforming the sector will result in long-term energy security. “We took the necessary decisions in the past five years and these are bearing fruit,” he said.
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To promote further investments in renewable energy, Treasury’s budget proposes a limit increase for renewable energy projects that can qualify for the regime to offset carbon. This will increase from 15 megawatts to 30 megawatts.
“Eskom continues to be a key role player in the electricity sector, and the debt relief plan allows the entity to focus on its core business,” he added.
COAL-FIRED POWER STATIONS
Godongwana said Treasury will release the independent review report of Eskom’s coal-fired power stations in the coming week, in line with the debt relief plan.
The suggestions will contribute to enhancing accountability and oversight in Eskom’s corporate plans, he said.
It is hoped that reliability and security of electricity supply will also improve through a number of means.
“It is through the combination of private investment in new energy projects, rooftop solar installations and improvements in Eskom’s generation fleet that load shedding will reduce, Godongwana said.
SMART PREPAID METERS ROLLOUT ANNOUNCED IN BUDGET SPEECH
In addition, to support these efforts, Godongwana said Treasury are introducing a new R2 billion conditional medium-term grant to fund the rollout of smart prepaid meters.
“This will begin with municipalities that have been approved for debt relief,” he added.
Over 70 municipalities have submitted applications and received approval for the Eskom debt relief program, initiated by Treasury last year.
This program is designed to help struggling municipalities settle their outstanding bulk electricity supply debts to Eskom.