Latest news with #KgosientsoRamokgopa
IOL News
09-07-2025
- Business
- IOL News
Government will fine-tune electrification programmes amidst R13bn budget
Minister for Electricity and Energy, Kgosientso Ramokgopa presented the department's Budget Vote in Parliament on Wednesday. Image: Supplied Banele Ginidza Minister for Electricity and Energy, Kgosientso Ramokgopa, has said that as only R13 billion had been allocated to the integrated national electrification programme over the medium term expenditure period, the allocation would be used as a de-risking instrument to crowd in developmental capital and concessional finance. Presenting the department's Budget Vote in Parliament on Wednesday, Ramokgopa said the department was working in close partnership with development finance institutions and the National Treasury in developing an infrastructure finance facility that will enable the frontloading of capital requirements through debt market instruments. "The aim is to mobilise balance sheet financing whilst preserving affordability and fiscal discipline. By using the public allocation as an anchor, the strategy allows for accelerated electricity rollout in high priority provinces and municipalities, greater geographic equity and predictable project pipeline attractive to institutional invetsors," he said. "The approach positions universal access as a bankable development investment with measurable returns in health, education and economic participation." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Next Stay Close ✕ Ramokgopa said as Eskom's ability to collect revenue for the services provided continued to decline and municipal debt - currently at just below R100bn after compounding by R3bn a quarter over the past year - the department hoped that the the Distribution Agency Agreement (DAA) being put in place would realise benefits for the sustainability of the entire distribution industry. Ramokgopa said the DAA would assist municipalities with their reticulation and distribution of electricity business, revenue collection and retail services. He said the DAA has dual potential to support municipalities to provide sustainable local services while contributing to the sustainability of Eskom. "Some of the benefits realised at these municipalities where these DAAs have been implemented include increased payment levels from 10% to 30% after meter audits and replacement, being assisted to resolve customer disputes with their customers, settle their current accounts with Eskom in full and improved turnaround times to faults," Ramokgopa said. Speaking on behalf of the South African Local Government Authority (Salga), Mayor of Tswelopele Local Municipality, Kenalemang Phukuntsi, said the role of municiplaities was increasingly becoming vague in the amended Electricity Regulations Amendment Act (ERA) of 2024 and Just Energy Transition (JET) programmes. Phukuntsi said while the department's emphasis on a central authority was understandable for coordination, Salga was concerned that the role of municipalities, especially in distribution and the new energy market, was increasingly unclear. She said even within the ERA, the principal place of municipalities as key actors in the future market was not defined in a way that assured of their continued constitutional mandate. Phukuntsi said the Act still introduced a definition for electricity reticulation that Salga deemed as reducing its mandate to just lower levels of customer and voltage. "We still see that as an unconstitutional definition. The minister must still do industry-wide consultation unlike when it was inserted in the Bill without proper consultation. We cannot have a JET if it sidelines the very sphere closer to the core of our communities," she said. Phukuntsi said the strategic plan in the medium term allocations made little reference to the urgent reform required in the electricity distribution industry while the sector was on the verge of collapse in many municipalities. "We urge the department to align its plans with support for real local government, not just technical but institutional and financial and legislative, to ensure municipal distributions are strengthened and capacitated," she said. "We request further urgent clarification on how the roadmap aligns with the JET implementation plan, the National Treasury Metro Trading Entity Reform, and the unresolved issue of municipal debt to Eskom." Phukuntsi said Salga noted that 71% of the R27bn of the medium term allocation was directed to the programmes and projects largely through transfers to Eskom and municipalities. "Salga appreciates the inclusion of municipalities but also calls for the equitable transparent allocation criteria, greater flexibility in grant conditions to prevent funds being sent back to the National Treasury, and therefore disadvantage the communities," she said.
TimesLIVE
25-06-2025
- Business
- TimesLIVE
Ramokgopa refutes 'conflict of interest' claims in Oberholzer scoring R9.5bn battery storage tender
Electricity and energy minister Kgosientso Ramokgopa has strongly rejected allegations of any wrongdoing in Eskom's decision to give a R9.5bn energy tender to a company chaired by one of its former COOs, Jan Oberholzer. Ramokgopa told MPs on Wednesday there was 'no substantial evidence' to back up allegations of 'conflict of interests' between Eskom and Oberholzer's Mulilo Energy scoring a R9.5bn battery-storage tender, as part of the utility's renewable energy programmes. Ramokgopa was responding to oral questions from MPs in the National Assembly on Wednesday during the appearance of cabinet ministers in the economic cluster. MK Party MP Sipho Mbatha, who had put the question to Ramokgopa, had made the allegation of a conflict of interest in the deal between Eskom and Mulilo Energy. The business transaction has also been slammed by other parties such the EFF, the Black Business Council, and trade unions such the NUM. But Ramokgopa stuck to his guns, telling lawmakers that no evidence of a conflict of interest or any form of wrongdoing had been found during Eskom's due diligence on the Mulilo transaction. 'Mulilo did comply with the requirement of public disclosure. They made it known to the independent procurement office that its chairperson is a former COO of Eskom. 'And in that regard the IPP office then initiated a process where we sought legal advice from an independent assessor and a determination was made that there was no conflict [of] interest and therefore the process can unfold as determined, and that's how that process then culminated in us issuing the preferred bidder status,' Ramokgopa explained.
IOL News
12-06-2025
- Business
- IOL News
SA's green hydrogen initiatives gain momentum with R650 million development funding
Minister for Electricity and Energy, Kgosientso Ramokgopa, acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. Image: GCIS South Africa's plans to accelerate the development of green hydrogen have received a major boost with several initiatives announced on Thurdsay, highlighting the country's commitment to renewable energy. The Public Investment Corporation (PIC), the Industrial Development Corporation of South Africa (IDC), and the Development Bank of Southern Africa (DBSA) have collectively invested R656 million into the South African Hydrogen Fund (SA-H2), also known as CI3 South Africa. This fund is pivotal in advancing the country's just energy transition (JET) and reinforcing its status as a global leader in green hydrogen. As part of this intensification of green energy initiatives, the IDC has joined forces with Germany's KfW Development Bank to provide grant funding for Mahlako, a 100% women-owned firm focused on developmental infrastructure projects, and CENEC (Central Energy Corporation), based in Bloemfontein. This partnership aims to expedite the development of the Prieska Power Reserve (PPR), a project that has successfully navigated a rigorous due diligence process this year. To date, the IDC has received a significant number of funding applications for green hydrogen projects and the PPR was among the first to have undergone a rigorous due diligence process. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The announcements coincide with the inaugural Africa Green Hydrogen Summit in Cape Town where President Cyril Ramaphosa and Minister for Electricity and Energy, Kgosientso Ramokgopa, outlined the government's efforts to mobilise blended finance within the hydrogen sector. Ramaphosa said green hydrogen was a way to marry Africa's mineral riches with renewable energy endowment to decarbonise heavy industries, to create jobs, to stimulate investment and to unlock inclusive growth across borders. "The growing global demand for clean hydrogen as countries decarbonise their industries, transport, and energy systems presents unlimited opportunities for our continent," he said. "As demand for green hydrogen grows, so does demand for platinum group metals, sustaining and expanding our continent's mining and refining industries." Ramokgopa acknowledged the capital-intensive nature and commercially untested at scale of this emerging sector, particularly at early stages. "The Department of Electricity and Energy, working with National Treasury, the IDC and the DBSA, is advancing instruments to de-risk early projects through concessional capital, credit enhancements instruments, and project preparation facilities," Ramokgopa said. In a significant showcase of its ambitions, SA-H2 announced its first investment of $20m for the Hive Hydrogen Coega Green Ammonia Project in the Eastern Cape, which is set to revolutionise green ammonia production in the country. The plant aims to generate approximately 1 million tons of green ammonia annually, facilitating the avoidance of 2.6 million tons of carbon emissions each year and creating more than 20 000 jobs during its construction and operational phases. The IDC's recent statement elaborated on the scope of the Development Funding Agreement, detailing support for engineering, procurement, construction selection, front-end engineering and design, and environmental and social impact assessments. This crucial investment paves the way for financial close by mid-2026, with commercial operations anticipated to commence by 2029. 'Green hydrogen economy will not only create jobs but help boost South Africa's energy security in the long-term,' said Rian Coetzee, the IDC's acting divisional executive for industry development and planning. 'To this effect, there has been a significant ramp-up of greenhydrogen projects in the country over the past three years and these have attracted the attention of international funding entities that are keen to accelerate development of the local Green Hydrogen economy.' SA-H2 will be managed through a partnership that includes Climate Fund Managers B.V. (CFM) and Invest International (II), a Dutch development finance institution. The project sites for PPR, which encompass around 1 900 hectares, are strategically located to facilitate renewable energy generation and green ammonia chemical processing in collaboration with the Siyathemba Local Municipality. The Department of Electricity and Energy also used the event to formally launch the South African Renewable Energy Masterplan (SAREM), a Cabinet-approved, sector-wide industrial strategy that anchors energy transition in local manufacturing, value addition, and job creation. 'SAREM is not just a roadmap for expanding renewable energy generation; it is a blueprint for how to industrialise through energy,' Ramokgopa said. 'Developed through a rigorous social compacting process between government, industry, labour, and civil society, it sets clear targets for localisation, supplier development, skills transfer, and green economy investment attraction.' The Masterplan aims to leverage South Africa's growing renewable energy demand, including for green hydrogen, to stimulate upstream and downstream industrial development across solar PV, wind, battery storage, electrolysers, and fuel cell technologies. BUSINESS REPORT Visit:
The Citizen
02-06-2025
- Business
- The Citizen
MK party wants full disclosure over R9.5bn battery storage projects
Electricity Minister Kgosientso Ramokgopa praised Mulilo Energy as a "great South African success story". The MK party says it wants full disclosure of bid adjudication records after a multi-billion energy tender was awarded to a company headed by former Eskom CEO Andre de Ruyter's right-hand man, Jan Oberholzer. On Friday, Electricity Minister Kgosientso Ramokgopa announced the appointment of five preferred bidders under the Battery Energy Storage Independent Power Producers Procurement Programme (BESIPPPP). De Ruyter's right-hand man Mulilo Energy, chaired by Oberholzer, the Chief Operating Officer of Eskom and Scatec, was awarded five large battery storage projects in the Free State to develop 616 MW / 2,464 MWh of new battery storage capacity for R9.5 billion. Oberholzer was appointed chairperson of Mulilo in September 2023, just two months after leaving Eskom as COO. Out of the five available projects, four were awarded to Mulilo Energy Mulio Energy was founded in 2008 by property developer Johnny Cullum and racing driver Chris Aberdein after a conversation about load shedding. Both remain on Mulilo's board. ALSO READ: Eskom denies reports of 14-hour load shedding next month MK party not happy Ramokgopa praised Mulilo at Friday's announcement as a 'great South African success story' that shows the country can stand tall globally. However, the MK party wants transparency in the bidding process MK party national spokesperson Nhlamulo Ndhlela said they have written to Ramokgopa demanding full disclosure of the bid adjudication records within seven days. 'The uMkhonto weSizwe party is blowing the lid off what appears to be one of the most blatant acts of javelin throwing in post-apartheid public procurement, this time under the green veil of 'renewable' energy. 'Should the Minister fail to comply, the MK party will immediately approach the courts to interdict and suspend these contracts,' Ndhlela said. 'Billions' Ndhlela said 'this is no longer about megawatts. 'This is about the billions being funnelled out of our country under the false flag of progress, and the MK Party will not stand by and watch our state-owned entities being handed over to corrupt white monopoly capital interests'. The Battery Energy Storage Programme is a critical initiative aimed at enhancing South Africa's power system by providing essential ancillary services and increasing grid capacity through energy storage. Projects Other awarded projects located in the Free State will include: Erfdeel BESS (123MW/ 492MWh) Retreat BESS (123MW/ 492MWh) Bloemhoek BESS (124MW/ 496MWh) Vanilla BESS (123MW/ 492MWh) The BESIPPPP Bid Window 3 was launched on 28 March 2024, with bids submitted on 28 November 2024. Ramokgopa said the evaluation process was conducted by an Independent Bid Evaluation Committee 'under strict security measures, took place at the IPP Office.' ALSO READ: Eskom winter outlook: Here's how many days of load shedding to expect in SA
IOL News
14-05-2025
- Business
- IOL News
Ramokgopa apologises to business for unplanned return of load shedding
Minister of Electricity and Energy, Kgosientso Ramokgopa, took to the podium to apologise to business for the return load shedding. On Tuesday, Eskom announced that Stage 2 load shedding will only be implemented during peak periods, from 4pm to 10pm, until Thursday (May 15). Ramokgopa told media that the level of outages was due to delayed return of generation units and unplanned breakdowns in the past day or so. The return of load shedding is now at 2023 levels, said Ramokgopa, noting that 'we have reached that red line' at which Eskom needs to implement blackouts. Stage 2 outages involve disconnecting areas from the grid for as long as four hours at a time. Data compiled by the Council for Scientific and Industrial Research showed that load shedding cost the South African economy about R2.8 trillion in 2023, with more intense rolling blackouts than any other year.
