Second time round for energy-related project cargo

Undertakings relating to the breaking up of Eskom into three entities made by president Cyril Ramaphosa in his 2019 State of the Nation Address (Sona) could switch on investment by the private sector in a number of power projects across the country. “The DA has been pushing for Eskom to be split up into
two entities – one to generate electricity and the other to distribute and transmit. This will allow greater competition in the energy sector, ensuring prices are lowered for all South Africans,” said Democratic Alliance (DA) leader Mmusi Maimane in his reaction to Sona 2019. “Moreover, well-functioning metropolitan municipalities
must be allowed to source clean, renewal energy from independent power producers. Only these steps will transform the energy sector, stabilise supply, and lower costs,” he added. If the independent power producers are attracted back to South Africa there will be an increase in the demand for project cargo services.
But the industry should not be holding its breath. Plans to split generation from distribution date back to 2012, when the African National Congress introduced the Independent System Market Operator (ISMO) Bill. It was buried soon after then president Jacob Zuma mentioned it in his 2014
Sona address. Ramaphosa says the first priority is transmission: “Of particular and immediate importance is the entity to manage an independent state-owned transmission grid combined with the systems operator and power planning, procurement and buying functions,” he said.