Newly minted electricity department outlines grid and renewables targets to lawmakers

The newly separated Department of Electricity and Energy (DEE) has outlined its vision and mission to lawmakers, listing among its priorities for the coming five years the procurement of 20 GW of new renewables capacity and the addition of 5 044 km of new powerlines.

The department previously operated under the umbrella of the Department of Mineral Resources and Energy, but from April 1 began operating separately from the Department of Mineral and Petroleum Resources, in line with President Cyril Ramaphosa’s 2024 proclamation to again separate the two departments.

The DEE has taken up offices at Matimba House, on Visagie Street in Pretoria, where a previous version of the Department of Energy was headquartered before being merged with the mineral resources department, and Electricity and Energy Minister Dr Kgosientsho Ramokgopa announced recently that Subesh Pillay had been appointed as acting director-general.

In a presentation to the Portfolio Committee on Electricity and Energy on April 23, the department announced that its aim was to increase the installed base of renewables from 11 GW currently to 33 GW by 2030 and raise local content in these projects to 60% by that date.

In addition, it intended to expedite the Transmission Development Plan, by introducing private Independent Transmission Projects in support of the National Transmission Company South Africa’s own efforts; in the process raising private-sector investment in energy infrastructure from R80-billion to R400-billion by the end of the decade.

It is also aiming to facilitate the creation of 200 000 new energy sector jobs aligned to the country’s just energy transition, increase the proportion of electricity generated by independent power producers from 14% currently to 40%, and shepherd in 500 000 t of green-hydrogen capacity.

Project approval systems should also be streamlined to reduce licensing and permitting turnaround times for new electricity projects from 24 to 6 months and South Africa should rank in the top 10 globally for clean energy investment.

By the end of the decade, the DEE says yearly loadshedding days should be zero, there should be a market code in place for electricity trading, alongside a fully operational wholesale electricity market, and the proportion of electricity traded within the Southern African Power Pool should rise to 15% from 5%.

To guide the procurement of new generation, the DEE intended finalising a new Integrated Resource Plan, which it dubs IRP2025, as a replacement to the prevailing IRP2019.

A draft version is currently being discussed by the social partners at the National Economic Development and Labour Council before being presented to Cabinet for its approval.

The department is aiming for the IRP2025 to be “fully implemented” by 2030. Likewise, it intends to fully implement a Gas masterplan, which is currently still in draft form.

Internally, the DEE intends to have 100% of its core business functions digitalised by 2030, improve gender and age-group representation across its employee base, sustain a clean audit and ensure that all the State-owned entities in its orbit do likewise.

The department has shareholder responsibility for Eskom, the National Energy Regulator of South Africa, the National Nuclear Regulator, the South African Nuclear Energy Corporation, the National Radioactive Waste Disposal Institute and the South African National Energy Development Institute.

The DEE has a yearly budget of more than R6-billion, more than R4-billion of which is directed to Eskom and municipalities in support for the Integrated National Electrification Programme.