President Cyril Ramaphosa’s plan to tackle the power crisis in South Africa, as announced on July 25, has by and large been well received by the business, labour, academic and environmental communities, but many call for firm deadlines to be added to the plan.

Industry body Business Unity South Africa (Busa) CEO Cas Coovadia says the head of State duly considered the private sector and energy experts’ proposals for stabilising and securing the country’s energy supply.

All stakeholders agree that as much generation capacity as possible needs to be brought online in as short a span of time as possible to close the 6 GW energy gap and Ramaphosa’s plan is a “concrete step” towards achieving that, adds Coovadia.

Particularly, Busa appreciates the removal of the need to license embedded private sector generation capacity and the use of new pricing structures to incentivize investment in commercial and household rooftop solar power generation.

What is still required, however, is a clear execution plan, set against hard deadlines and accountability for delivery. Coovadia states the country and the business sector will benefit from regular and transparent progress reports in this regard.

Busa says it will collaborate with the President’s newly constituted National Energy Crisis Committee to drive implementation of this package of interventions, while recognising that it will take time, patience and endurance to end load-shedding.

Business for South Africa steering committee chairperson Martin Kingston, meanwhile, says the power plan offers a blueprint for action and partnership; however, key enabling factors such as rapid investment in the transmission grid and the need for a standardised wheeling framework must not be forgotten.

He points out that while there are many areas of the economy that require urgent reforms, such as water security, logistics and crime, none is as critical as energy availability, which is integral to unlocking economic growth, investment and jobs, and which will put the country back on a path to success.

Trade union Solidarity CE Dr Dirk Hermann believes the power plan represents an “anxious leap in the right direction”.

He states that government’s move towards a more decentralised system for power generation is the only workable and sustainable solution to South Africa’s power crisis.

“The encouragement and facilitation of small-scale power generation on a large scale is of crucial importance to stabilise our grid. Through deregulation and the removal of regulatory barriers, we free the private sector and communities up to present creative and resilient solutions to the crisis,” he explains, warning that government should not succumb to the temptation of falling back on its outdated model which has led to unfulfilled promises.

Environmental organisation Greenpeace Africa climate and energy campaigner Thandile Chinyavanhu highlights that the organisation has been calling for feed-in tariffs for a long time – allowing South Africans to meaningfully contribute to the grid and help bring an end to load-shedding.

“After years of campaigning, we welcome the decision to remove the arbitrary threshold for renewable energy generation. South Africa has not even begun to exhaust its renewable energy potential and this is a big step towards that end,” she avers.

Chinyavanhu adds that the President does well to keep people and the planet in mind in stabilising the energy system, as “renewable energy is the answer to both the energy and climate crises”.

The South African Photovoltaic Industry Association (SAPVIA) agrees, adding that there are already several large-scale projects that have benefitted from government’s efforts to expedite the export of energy to the grid.

The new interventions will further expand the options available to developers and sponsors of energy projects to deliver projects on short timeframes and at no cost to Eskom, notes SAPVIA CEO Rethabile Melamu.

North West University Business School economist Professor Raymond Parsons values the President acknowledging the extent to which rolling blackouts and lack of energy security have become the single-biggest threat to economic performance.

“It remains essential that the sense of urgency conveyed in Ramaphosa’s announcement be translated into effective collaboration at all levels to achieve the necessary outcomes.

“The official intentions, such as to reduce ‘red tape’ and to expedite decision-making, to recruit available experienced technical skills, and to mobilize the private sector on a much larger scale, are all essential steps which key stakeholders must now reinforce,” Parsons notes.

He agrees with Busa that it would have been helpful if specific timelines and listed outcomes for certain projects had been outlined by the President.

Parsons adds that the present plan falls short of a previous commitment on government’s part that 30% of the electricity grid will eventually be in the hands of the private sector; however, he nonetheless welcomes the fact that the 2019 Integrated Resource Plan (IRP) will be updated to reflect new developments.

Renewable energy company Scatec expressed elation at the country finally having a “pragmatic and holistic” energy plan that addresses the necessary elements. The company is encouraged by and appreciative of the President having taken on board the flood of advice and inputs from stakeholders in the energy sector.

Scatec sub-Saharan Africa GM Jan Fourie says the plan has a high probability of delivering a real solution and is a positive step for the renewables sector, taxpayers and the country at large.

Business Leadership South Africa (BLSA) appreciates the news that Eskom will, in the next year, increase its maintenance budget to increase the reliability of its power stations, as well as government’s intention to cut red tape and allow the utility to procure parts and equipment more easily.

“We hope the measures announced in the president’s plan will be implemented with both urgency and purpose as well as transparency,” the industry organisation states.

The Organisation Undoing Tax Abuse (Outa) notes that the plan is long overdue and that Mineral Resources and Energy Minister Gwede Mantashe should have implemented many of these measures long ago.

“This lack of implementation and continuous procrastination by people in positions of public sector leadership – not only in the energy sector but also in health, water, education and security – is a serious impediment to South Africa's development,” the organisation says in a statement.

Outa also firmly calls for more detailed information on these reforms, with firm deadlines and an updated IRP, ideally before the end of the year.

“We also look forward to seeing the National Treasury’s plan for Eskom’s debt burden, which has been promised for a long time,” says Outa legal project manager Brendan Slade.

The organisation hopes this long-awaited urgency to address the energy crisis will not be used to cut corners to bring in "disastrous contracts".

Lastly, Energy Intensive Users Group of South Africa CEO Fanele Mondi says the National Energy Crisis Committee ought not only to monitor implementation of the reforms but also refine some of them, and hold relevant parties accountable for delivery.

He hopes that the committee will ensure that all solutions consider the security, quality, affordability and decarbonisation of electricity, and a sustainable, inclusive path going forward.