- Operation Vulindlela Progress Update Q3/Q4 2023 Report0.91 MB
This quarterly report marks the three-year anniversary of Operation Vulindlela (OV). OV was formed in the nadir of the Covid-19 pandemic, with the aim of driving the implementation of reforms that could set the South African economy on a faster, stronger growth trajectory.
In the three years since OV was established, it has worked closely with the responsible government departments to drive the implementation of wide-reaching reforms across key network industries.
In electricity, it has paved the way for private investment in electricity generation, with reforms underway to establish a competitive electricity market for the first time in South Africa’s history. Schedule 2 of the Electricity Regulation Act was amended in December 2022 to remove the licensing threshold for generation facilities. Since the implementation of regulatory changes, the pipeline of confirmed private sector generation projects has increased to over 120 projects representing more than 12 GW of new capacity, which will begin to connect to the grid from this year.
These projects will result in over R220-billion of new investment once implemented. The removal of the self-generation licensing threshold has unlocked an estimated 66 GW of wind and solar energy projects, and of this, 18 GW are in advanced development1. Projects with a cumulative total of more than 5 600 MW have been registered with Nersa to date.
Further regulatory reform is underway. The Electricity Regulation Amendment Bill has been formally tabled in Parliament and published for public comment. The Portfolio Commitee concluded public hearings on 30 November 2023. The Bill outlines the powers and functions of the Transmission System Operator and establishes a competitive wholesale market for electricity.
Report by National Treasury
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