On Thursday 12 August 2021 the national Minister of Mineral Resources and Energy, Gwede Mantashe, published the Amendments to Schedule 2 of the Electricity Regulation Act which now allows for the exemption of licensing fees for embedded generation projects up to 100MW. The amended regulations will encourage investment by individuals and businesses in generating their own energy and assist the Western Cape to be the first province to beat load shedding. Every home, every business should be empowered to become their own power station.
While the Minister has missed the 60-day deadline to publish these regulations, it is better late than never as it has the potential to be a game changer for the Western Cape economy.
In order to understand the extent to which these regulations will affect households and businesses, as Chairperson of the Standing Committee of Finance, Economic Opportunities and Tourism, I will request the national Minister and Department of Mineral Resources and Energy to brief the Standing Committee on these energy regulations. I will further submit questions to the provincial Minister of Finance Economic Opportunities to enquire as to his Department’s position on these regulations and opportunities these will create for the Western Cape economy.
We note the concerns expressed by the provincial Department of Economic Opportunity and Tourism that the regulations may become a red tape exercise if the registration process is not streamlined. More than this, the question becomes, what does this mean for our municipalities in their efforts to bring energy security to their residents?
In support of the provincial economy’s recovery and growth, after the devastating effects of COVID-19 restrictions on the economy, national government needs to create a regulatory environment that promotes innovation and investment. We must invest our energy wisely. While there is a long road ahead to ensure that the rolling blackouts are a thing of the past, this is an important first step.
