In his final press conference of 2024, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, outlined milestones achieved under the Energy Action Plan (EAP) and announced the preferred bidders for Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and Bid Window 2 of the battery energy storage programme.
Ramokgopa confirmed the selection of eight preferred bidders for solar photovoltaic projects under Bid Window 7.
The projects, totalling 1,800MW, include several consortia operating across the Free State, Limpopo, and Northwest provinces.
Solar tariffs ranged from an economical 42c to 49c/kWh, showcasing the increasing affordability of renewable energy solutions.
Ramokgopa also announced progress in Bid Window 2 of the battery energy storage programme, targeting areas in the Northern Cape, Free State, and Gauteng.
This programme aims to add 515MW of storage capacity, addressing challenges of intermittent renewable energy generation.
EAP progress
Reflecting on the EAP, the minister highlighted the strides made in energy availability and grid reliability.
South Africa marked 272 days of uninterrupted power supply in 2024, the longest stretch in five years.
Key achievements include operational improvements at major coal power stations, commissioning Kusile Unit 5, and synchronising additional capacity.
These measures have collectively added over 6,000MW to the grid.
“Although load-shedding levels have significantly declined, we remain focused on achieving an energy availability factor (EAF) of 70% by 2025,” Ramokgopa said.
He also gave special mention to the R16.6bn reduction in diesel costs, reflecting improved generation efficiency.
Challenges and future outlook
The minister acknowledged the persistent challenge of energy poverty, particularly among low-income households burdened by rising electricity tariffs.
He pledged interventions such as increasing the allocation of free basic electricity and addressing municipal energy debt, which is a major drag on utility payments and grid maintenance.
Ramokgopa also stressed the urgency of grid modernisation, highlighting capacity constraints in high-demand regions like the Cape provinces.
He shared that grid expansion projects, including the independent transmission development pilot, are advancing, with market sounding and regulatory approvals underway.
Commitment to a just energy transition
As South Africa navigates its energy transition, the minister reaffirmed the Ramaphosa administration’s commitment to reducing reliance on coal while leveraging existing endowments.
“Our approach is not anti-coal but pro-clean energy. We are exploring technologies such as cofiring coal with ammonia to balance economic and environmental needs,” he explained.
The Integrated Resource Plan (IRP) update, due for publication in early 2025, will guide this transition, aligning with global commitments to address climate change and local imperatives for energy security.
